New Partnership Acquires Arcturus Downs Aggregation in Carbon Credit Market

Strategic Insights -

A highly developed farm in the Springsure district of Central Queensland has been sold to a new partnership aiming to inject new life into the carbon credit market. The partnership, which includes the Federal Government's Clean Energy Finance Corporation and Canadian investment group La Caisse, has acquired the Arcturus Downs aggregation, a 15,601-hectare farm that includes 1000ha of irrigation, 6852ha of dryland farming, 2593ha of arable grazing land, and 5156ha of mixed grazing and support country. The partnership plans to combine sustainable agricultural production with large-scale environmental plantings under the Australian Carbon Credit Unit (ACCU) scheme.

Key Takeaways:

  • The partnership between the Clean Energy Finance Corporation and La Caisse has acquired the Arcturus Downs aggregation, a 15,601-hectare farm in the Springsure district.
  • The farm includes 1000ha of irrigation, 6852ha of dryland farming, 2593ha of arable grazing land, and 5156ha of mixed grazing and support country.
  • The partnership plans to manage the farm using sustainable agricultural practices and large-scale environmental plantings under the Australian Carbon Credit Unit (ACCU) scheme.
  • The ACCU scheme involves planting and maintaining native vegetation for a minimum of 25 years, providing long-term carbon sequestration and biodiversity benefits.
  • The Canadian investment group La Caisse has invested $200m in the Meldora platform, while the CEFC has invested $50m alongside.
  • Rio Tinto is a foundation offtaker for the platform, which aims to generate high-quality Australian Carbon Credit Units.
  • The partnership plans to combine sustainable agricultural production with large-scale environmental plantings under the ACCU scheme.

Statistics:

  • The Arcturus Downs aggregation spans 15,601 hectares (38,551 acres).
  • The farm includes 1000ha of irrigation, 6852ha of dryland farming, 2593ha of arable grazing land, and 5156ha of mixed grazing and support country.
  • The CEFC and La Caisse have invested a total of $250m in the Meldora platform.
  • Rio Tinto has committed to be a foundation offtaker for the platform.
  • The Australian Carbon Credit Unit (ACCU) scheme allows native vegetation to be planted and maintained for a minimum of 25 years, with benefits lasting up to a century.

Sources:

  • Byline: Mark Phelps
  • LAWD (no date mentioned)
  • LAWD Solicitors (no date mentioned)