Otway Silva 2027_2

Otway Silva 2027_2 is a plantation forestry project located approximately 10km south-east of Simpson, and roughly 45km south-west of Colac, in Victoria's Corangamite region. It was registered on September 25, 2026, and covers a project area of 79.74 hectares.

Plantation forestry projects generate carbon credits by establishing new commercial plantations or converting existing short-rotation plantations to long-rotation forests. 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 to achieve true forest status.

The Simpson and broader Corangamite areas are well known for intensive dairy farming, sheep and cattle grazing, and extensive commercial forestry operations. The area experiences a temperate, high-rainfall climate, averaging 800 to 1000mm of rain annually. Soils in the district are typically highly fertile, featuring rich volcanic basalts, clay loams, and sandy loams over clay. These environmental conditions make the region 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 for the commercial harvesting of wood products. Interestingly, the project proponent, Otway Silva Pty Ltd, is backed by MEAG, the asset management arm of the German insurance group Munich Re. In 2022, MEAG acquired a 17,000-hectare plantation estate from Midway Limited for $154.1 million, and committed an additional $200 million for the development of new greenfield hardwood plantations across south-west Victoria. Midway Plantations Pty Ltd serves as a key participant and manages the combined assets under a long-term agreement.