RLF AgTech has been granted approval for its first project aiming to deliver Australia’s fastest Australian Carbon Credit Units (ACCU).  

Tech-driven plant nutrition company RLF AgTech (ASX:RLF) has announced the Clean Energy Regulator (CER) has approved its Hillston Soil Carbon Project – its first project in Australia.

The project has been developed using RLF’s advanced plant nutrition products and proprietary system Accumulating Carbon in Soil System (ACSS, pronounced ACCESS), which is designed to drive generation of cost-effective soil carbon credits.

The irrigated project involves a 45-hectare area of land 12km south-east of Hillston, in NSW.

By building organic soil carbon levels to generate ACCUs, farmers Luke and Felicity Hutchinson seek to improve their cropping and grazing farm business and add an additional revenue stream.

RLF said the potential revenue stream will be in addition to the increased revenue expected from typical yield increases achieved by using RLF’s products in the ACSS when compared to the use of traditional soil applied fertilisers alone.

“I first considered using RLF’s products due to the potential for emissions offsetting, and I’ve noticed additional benefits such as improved root health and increased soil biodiversity,” Luke Hutchison said.

 

Embracing bold plan with enthusiasm

Managing director Ken Hancock said as a tech-driven plant science company RLF have naturally always had a strong focus on R&D.

“Producing Australia’s fastest soil carbon ACCU is a bold and ambitious challenge and one our team is embracing with full enthusiasm as we understand the significant productivity and financial benefits that can flow to Australian growers, agriculture and the food supply chain in the transition to a net zero carbon economy,” he said.

Independent carbon service consultancy Carbon West has been appointed to support the establishment and on-going compliance management of RLF’s numerous commercial farming soil carbon pilot programs.

 

Australia’s Fastest ACCU

As the first project approved by the CER using RLF’s ACSS, the project has been set up to demonstrate and drive rapid generation of soil carbon ACCUs using the company’s advanced crop nutrition products and technologies.

Typically, it takes around four to five years for projects to begin generating ACCUs, however, RLF’s Hillston Soil Carbon Project is seeking to generate soil carbon credits in 1 to 2 years, which is a potential game changer for future soil carbon success.

RLF AgTech’s Field Advisor Richard Stone said the pivot irrigation system used in this project gives the ability to improve plant biomass production year-round, given that we are not at the mercy of rainfall variability.

“Irrigation also reduces the risk associated with drought that can impact the building and maintenance of soil carbon levels over time,” he said.

“In fact, the Hillston project area has access to water rights which currently exceed irrigation demand.”

Soil carbon sequestration is a key component of the Australian Government’s technology-led emissions reduction policy and has the potential to be a significant carbon dioxide removal mechanism.

 

Well positioned for Safeguard Mechanism

Demand for carbon credits domestically is expected to reach 40 million ACCUs under the Federal Government’s Safeguard Mechanism by 2030.

RLF said the successful deployment of its technology to generate an institutional supply of carbon credits has potential to deliver significant revenue and profits for the company.

The Safeguard Mechanism is an integral component of the Federal Government’s policy framework designed to control and decrease carbon emissions from major climate polluters in Australia.

This mechanism operates in conjunction with other initiatives like the Emissions Reduction Fund, which acquires carbon credits and promotes projects that mitigate or decrease carbon emissions.

Facilities covered by the safeguard mechanism can also use Australian carbon credits to fulfill their emissions reduction responsibilities.

 

 

This article was developed in collaboration with RLF AgTech, a Stockhead advertiser at the time of publishing.

 

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

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