AA2025R_BlackHillsP_S1S3

AA2025R_BlackHillsP_S1S3 is a commercial plantation forestry project located in the rural locality of Black Hills, approximately 10km north of New Norfolk and 35km northwest of Hobart, Tasmania. Registered on August 14, 2024, the project covers a net area of 456.38 hectares. The site is situated in the Derwent Valley region, an area characterized by a mix of intensive agriculture (such as hops and cherries) on the valley floor and extensive forestry and grazing operations in the surrounding hills.

The project operates under the Carbon Credits (Carbon Farming Initiative, Plantation Forestry) Methodology Determination 2022. Uniquely, the project name and activities indicate a hybrid approach utilizing both "Schedule 1" and "Schedule 3" of the methodology. This means the project involves establishing new plantation forests on land that has been clear of forest for at least seven years (Schedule 1), while simultaneously claiming credits for maintaining existing plantations that were at risk of being converted to non-forested land (Schedule 3). By doing so, the project secures carbon sequestration in growing trees and long-term wood products, contributing to the timber supply chain while generating Australian Carbon Credit Units (ACCUs).

Environmentally, the Black Hills region experiences a cool temperate climate with a significant rainfall gradient due to the elevation changes from the Derwent River up to the plateau. While New Norfolk is relatively dry (approx. 550mm annual rainfall), the higher altitude project area likely receives moderate rainfall between 600mm and 800mm. The soils in this upland region are typically derived from dolerite or sandstone, often presenting as clay-loams or duplex soils (dermosols and tenosols) suitable for Pinus radiata or Eucalyptus nitens plantations.

The project is managed by SFM Environmental Solutions, a prominent Tasmanian forest manager that oversees approximately 30% of Australia's plantation carbon projects. While "The Trust Company (Australia) Limited" acts as the legal trustee for the Tasmanian Carbon Afforestation Sub-Trust, SFM provides the operational expertise, ensuring the estate meets dual forest management certifications (FSC and PEFC/Responsible Wood). This structure suggests the project is part of an institutional investment portfolio focused on integrating sustainable timber production with carbon finance.