THE list of carbon-offset firms in Western Australia continues to grow, as a new player with a combined horticultural/carbon sink project looks to enter the market.
THE list of carbon-offset firms in Western Australia continues to grow, as a new player with a combined horticultural/carbon sink project looks to enter the market.
Started earlier this year, C@ Ltd is aiming to develop combination olive/eucalyptus plantations with the main aim of sequestering carbon and producing carbon credits under the new Carbon Pollution Reduction Scheme.
The carbon sequestration will be underpinned by a viable and permanent agribusiness, which will provide other revenue streams down the track, including bulk olive oil for human consumption and biomass for renewable energy.
A former health care equipment and services provider, the company undertook a major reassessment of its core business and, in February, decided to focus on opportunities in the climate change solutions industry.
In the past six months, the company has assembled an experienced board and management team, including director Andrew Konowalous, founder of WA olive oil producer Redisland Australia Ltd, and chief operating officer Dr Robyn Wood, who established the horticultural operations of Great Southern Ltd.
Its chairman, Andrew Harrison, was formerly managing director of Neptune Marine Services Ltd and Capitol Health Ltd.
Mr Harrison said the company chose olive plantations because of their robust nature and ability to survive in non-irrigated land.
He said the inclusion of a horticultural revenue stream in addition to the carbon credits differentiated its offering compared with other offset projects.
"It's a different approach to carbon sequestration while producing a horticultural crop," Mr Harrison said.
"We wouldn't be planting olives in this situation if not for the carbon credits."
Earlier this year, the company engaged Patersons Capital Partners, a partnership between Patersons Securities and ex-Alinta executives, to help it raise capital.
Turning its focus away from traditional equity markets, which have in recent times proven challenging, the company is looking for strategic partners to assist in developing the project.
Potential strategic partners include companies in the olive oil or carbon credit business, or large emitters who are looking to reduce their liability through the carbon-trading scheme through the generation of carbon credits.
"We're looking for strategic investors outside of the capital market wreckage that's occurring," Mr Harrison said.
The initial investment required will be $60 million over the next three years, with $30 million of that required to get the project up and running with land acquisitions.
While Mr Harrison admits the difficulties in global equity markets have put the project back, he is confident that the company will enter into a strategic partnership in the next three months.
"There's plenty of money out there and that's why we're looking for investors in potential alternative asset classes," he said.
C@ Ltd now joins six other WA offset companies engaged in tree planting to generate carbon credits.
These include the sector's newest player, Wisper Forestry Services, which offers a combined sandalwood/carbon sink product.
Also in this space are CO2 Australia Ltd, Australia's largest offset provider, as well as Carbon Neutral, Elementree, AusCarbon and ASX-listed Carbon Conscious Ltd.
