Otway Silva 2026_1 Carbon Project

Otway Silva 2026_1 Carbon Project is a plantation forestry project located across the Corangamite and Glenelg local government areas in south-west Victoria, spanning regions from near Port Campbell (approximately 60km south-west of Colac) to the Green Triangle region near Casterton. It was registered in October 2025 and initially covers 460.51ha, though a variation approved in February 2026 added more land to the project area.

Plantation forestry projects generate carbon credits by establishing new commercial plantations or by converting existing short-rotation plantations (such as pulpwood) to long-rotation forests (such as sawlogs). The methodology requires managing the forest for the commercial harvesting of wood products while ensuring the trees meet specific canopy cover and stocking density requirements.

The Corangamite and Glenelg regions are well known for intensive dairy farming, sheep and cattle grazing, and extensive commercial forestry operations. The area experiences a temperate, high-rainfall climate. Soils in the Corangamite area are generally rich volcanic basalts and clay loams, while the Glenelg region features sandy loams and sands over clay, both making it highly suitable for commercial timber species like Tasmanian blue gum and Radiata pine.

This project sequesters carbon by establishing and maintaining a new plantation forest alongside converting short-rotation crops to long-rotation forestry. Interestingly, the project proponent, Otway Silva (a subsidiary of the German insurance giant Munich Re), acquired Midway Limited's 17,000-hectare Victorian estate for $154.1 million in 2022 and committed a further $200 million to develop new hardwood plantations across south-west Victoria. Midway Plantations Pty Ltd operates as a key participant and manager in this specific project.