Perth-based CO2 Group has secured a $6.6 million contract expansion with an ACT government-owned company covering carbon credits over a 30 year plan.
Through its wholly owned subsidair CO2 Australia, CO2 Group said it had accepted a request from current client, ACTEW, to increase the planting project size by at least 50 per cent.
The project, including the increased plantings, is accompanied by a 30 year management agreement with ACTEW.
The expanded agreement will see CO2 Australia provide ACTEW with an estimated 337,000 tonnes of carbon credits over 30 years at a cost of approximately $6.6m. The majority of the project value will be realised in 2010 with the forest carbon sink being established during that year.
ACTEW is an unlisted public company owned by the ACT Government with assets and investments in water, wastewater, electricity, gas and telecommunications.
CO2 Group Chief Executive Officer, Andrew Grant said he is pleased that yet another CO2 Group customer is expanding their project and involvement with CO2 Australia.
The forest carbon sink being developed by CO2 Australia for ACTEW will be Kyoto compliant and established in accordance with draft CPRS legislation.
ACTEW joins other CO2 Group partners including Woodside Energy, Eraring Energy, INPEX Browse, Origin Energy, Qantas Airways, Macquarie Bank, Kansai Electric Power, Wannon Water Corporation, City of Sydney, Big Day Out and the Victorian Government.