Tiwi Plantation Carbon Project Two

Tiwi Plantation Carbon Project Two is a plantation forestry project located on Melville Island, part of the Tiwi Islands, approximately 80km north of Darwin in the Northern Territory. It was registered in August 2025 and covers an initial area of 2,859.54 hectares, with additional areas added to the project via a variation in November 2025.

Plantation forestry projects involve establishing and maintaining a new plantation forest where there was none previously, or transitioning existing operations to long-rotation cycles, for the commercial harvesting of wood products. This project sequesters carbon in the long-term tree biomass while maintaining a viable timber resource for the commercial export market.

The Tiwi Islands region is characterised by a tropical monsoonal climate that brings distinct wet and dry seasons with high rainfall. This environment supports rapid tree growth despite the region's generally nutrient-poor, lateritic soils. Regional land use primarily consists of traditional Indigenous land management, savanna fire management, and an extensive commercial forestry estate.

The project is managed by Tiwi Plantations Pty Ltd, a wholly Indigenous-owned entity, acting alongside project agent Plantation Management Partners Pty Ltd. It is part of a massive "second rotation" strategy aiming to replant and manage up to 30,000 hectares of plantations on the islands. Backed by a landmark $81 million investment involving the Clean Energy Finance Corporation and River Capital, the project utilises rapid-growth species like Acacia mangium and explores new timber varieties such as Eucalyptus pellita. This initiative dovetails with the island's established savanna fire management projects, delivering substantial economic value, training, and long-term employment opportunities for the local Tiwi community.