Tiwi Plantation Carbon Project Two

Tiwi Plantation Carbon Project Two is a commercial plantation forestry project located on Melville Island within the Tiwi Islands group, approximately 80km northwest of Darwin in the Northern Territory. Registered in August 2025, the project covers an area of 2,859.54 hectares. This specific project represents a tranche of a much larger initiative led by the Tiwi people to transition their forestry estate from short-rotation pulpwood to long-rotation high-value timber. The region is characterized by a tropical monsoonal climate with very high rainfall during the wet season and deep, red earth soils suitable for forestry operations.

The project operates under the Carbon Credits (Carbon Farming Initiative, Plantation Forestry) Methodology Determination 2022. This methodology credits the carbon sequestered by establishing new plantation forests or converting existing short-rotation plantations to long-rotation forests. In this specific instance, the project involves establishing Eucalyptus pellita (Red Mahogany) plantations. Unlike the previous Acacia mangium plantations which were grown primarily for woodchips and considered invasive, Eucalyptus pellita is a native Australian species chosen for its superior timber quality, cyclone resistance, and lower weed risk.

A notable aspect of this project is its ownership and financial backing. It is a First Nations-led initiative owned by Tiwi Plantations Pty Ltd, which manages the land on behalf of the eight traditional Tiwi clans. The broader 30,000-hectare replanting program, of which this project is a part, secured a landmark $81 million investment package from the Clean Energy Finance Corporation (CEFC) and River Capital in early 2026. Management services are provided by Midway Pty Ltd through its subsidiary Plantation Management Partners, aiming to generate high-integrity Australian Carbon Credit Units (ACCUs) alongside sustainable timber products for the construction/furniture industries.