Mitsubishi has acquired a 40 per cent stake in carbon developer Australian Integrated Carbon for an undisclosed sum.
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Mitsubishi has acquired a 40 per cent stake in carbon developer Australian Integrated Carbon for an undisclosed sum.
Mitsubishi has acquired a 40 per cent stake in carbon developer Australian Integrated Carbon (AIC) for an undisclosed sum.
Day to day management of AIC will be retained by its Australian founders and the investment will support future growth of the carbon developer, with AIC looking at developing projects that would deliver to 100 million new ACCUs.
AIC chief executive Adam Townley said the acquisition would give the Adelaide-based company an international perspective.
“They bring with it an international perspective, which I think is really important in this market, because in time, as we get convergence of carbon markets, we would like to make sure that we have that international perspective on what's happening in other markets," he said.
Australia’s Energy Reductions Fund (ERF) made the Australian carbon market an appealing investment opportunity for the automobile giant, Mr Townley added.
In April, AIC secured 28 per cent of the volume of contracts the 2021 ERF auction, securing a floor price for the company’s carbon credits.
“That is a unique feature of the Australian markets in comparison to all other markets, [and] it's also one of the things that Mitsubishi looked at,” Mr Townley said.
AIC has nine registered projects in WA in the Murchison and Canarvon regions, with more projects in development for the Northern Territory.
The carbon developer works with pastoralists to capture carbon by a variety of methods including revegetating native forests.
At the last two emission reduction fund auctions, AIC was the largest bidder of nature-based carbon credits.
A spokesperson for Mitsubishi said the investment is in step with their sustainability objective of transitioning to a low carbon society.
The deal was announced on July 28.
Rank | Company | # | |
---|---|---|---|
8th | ![]() | Mitsui & Co | $2.01bn |
9th | ![]() | Mitsubishi Corporation | $1.27bn |
11th | ![]() | KUFPEC | $1.06bn |
12th | ![]() | Tokyo Gas | $621.4m |