Perth-based CO2 Group Ltd has announced the company's 100% owned subsidiary CO2 Australia Ltd has reached agreement with Inpex Browse Ltd on a biosequestration assessment project to assess its potential in respect of the Ichthys field development.
Inpex Browse Ltd is operator of the Ichthys project, a joint venture between Japan's largest oil and gas company Inpex Corporation and the world's fourth largest oil and gas company Total of France.
Under the carbon biosequestration project, CO2 Australia will establish and manage mallee tree environmental plantings in a project designed to biosequester CO2 by planting trees on previously cleared agricultural land in Western Australia.
The program will commence with the establishment of seedlings in the 2008 planting season.
CO2 Australia on behalf of Inpex Browse will accredit the project under the Greenhouse FriendlyTM Program, which ensures that the environmental plantings meet the strict compliance obligations under the federal government greenhouse program including additionality, permanence and third party greenhouse gas accounting audit procedures and requirements.
CO2 Australia was the first company to be accredited under the Greenhouse FriendlyTM Program for biosequestration.
Accreditation was achieved in March 2007.
The biosequestration project has an estimated contract value of around $5 million, with the majority of the contracted value being generated in the 2008 planting season.
CO2 Group's Chief Executive Officer Mr Andrew Grant stated "CO2 Australia is delighted to be selected by Inpex Browse Ltd to undertake their first carbon biosequestration program in Australia.
This transaction highlights the growing international recognition and interest in our CO2 Australia carbon sequestration program.
We now have a number of carbon biosequestration projects being undertaken for numerous clients in New South Wales, Victoria and Western Australia in the current 2008 planting season."
