Subiaco-based Carbon Conscious has signed Australia's first international deal to supply 10,000 carbon offset units to Perenia.
Subiaco-based Carbon Conscious has signed Australia's first international deal to supply 10,000 carbon offset units to Perenia.
Under the agreement Carbon Conscious will plant 50,000 -70,000 mallee eucalypt trees on marginal WA farmland to deliver the units, known as Assigned Amount Units, to Perenia.
The parties have agreed on a delivery price of $16 per unit.
"We are pleased to be undertaking this important first transaction ahead of what we consider to be a large potential market for Carbon Conscious and other Australian carbon forest sink companies that will follow," said Carbon Conscious CEO Peter Balsarini.
"We are also pleased to be working with leading carbon originator Perenia and believe there are strong synergies and future oportunities for our companies to explore," he said.
Perenia describes itself as "a complete carbon solution provider" and is owned by Mitsui & Co, Pacific Hydro and SMEC.
Perenia CEO David Tow also welcomed the deal.
"This pioneering deal supplements Perenia's focus on further building its quality portfolio of carbon origination projects throughout the Asia Pacific region," said Mr Tow.
"Australia offers substantial opportunity for large scale environmental forestry projects
due the country's land mass, stable Government and property laws, providing for diversification within Perenia's current portfolio of projects under the Clean Development Mechanism," he said.
See company statement below:
Perenia Pty Ltd has contracted market leading carbon forest sink developer Carbon Conscious Ltd to supply 10,000 future internaionally exportable Australian Government backed Assigned Amount Units (AAU's), in an Australian first.
The deal involves Carbon Conscious planting approximately 50,000‐70,000 mallee eucalypt trees on marginal Western Australian farm land and delivering AAU's to Perenia, in line with tree growth, under the Australian Governments Carbon Farming Initiative.
The parties agreed on a delivery price from AU$16 per unit.
Carbon Conscious CEO Peter Balsarini said, "We are pleased to be undertaking this important first transaction ahead of what we consider to be a large potential market for arbon Conscious and other Australian carbon forest sink companies that will follow. We are also pleased to be working with leading carbon originator Perenia and believe there are strong synergies and future oportunities for our companies to explore".
Perenia is a complete carbon solution provider owned by Mitsui & Co. Ltd, Pacific Hydro and SMEC. Mitsui & Co. Ltd is one of Japan's leading trading houses with total revenues of US$59 billion and total assets of US$106 billion in FY 2008. Pacific Hydro are Australia's premier renewable energy company and one of the largest independent, specialist renewable energy businesses in the world. SMEC, or Snowy Mountains Engineering Corporation, is one of the world's leading engineering and development consultancies with over 4,000 employees and operations throughout Autralia, Asia, Middle East and Africa.
Perenia CEO David Tow said, "This pioneering deal supplements Perenia's focus on further building its quality portfolio of carbon origination projects throughout the Asia Pacific region. Australia offers substantial opportunity for large scale environmental forestry projects due the country's land mass, stable Government and property laws, providing for diversification within Perenia's current portfolio of projects under the Clean Development Mechanism (CDM). We are encouraged by the Australian Government's ongoing commitment to programs such as their Carbon Farming Initiative, which could lead Australia's engagement with existing international carbon trading markets and look forward to working furtherwith Carbon Conscious Ltd".
The Federal Government's Carbon Farming Initiative opens up large international markets for Australian forestry companies that ill supplement the chosen domestic mechanism for pricing Australian emissions. Forestry projects are expected to lead the international Australian AAU market due to strong and well defined systems for measring and verifying carbon forest sink plantations in Australia.
Australia's first forestry backed AAU deal follows pioneering and unmatched deals announced by Carbon Conscious in 2009 with Orgin Energy and BP Singapore worth up to $169 million and $2.5 million respectively designed for the planned Rudd Government's Carbon Pollution Reduction Scheme or CPRS. Trees will be established in a permanent manner, will store carbon over a 30 year period and will be maintained by Carbon Conscious Ltd through their Carbon Capture ProgramTM.
Mallee eucalypt trees are native to Australia, help reduce salinity and wind erosion on farms whilst contributing to the fight against climate change. Importantly, trees established by Carbon Conscious Ltd are not competing with food production as they are established in areas deemed margial for agriculture due to location, soil type and other key factors.
