Successful registration with the Clean Energy Regulator will be the next milestone for the company. Pic via Getty Images.
RLF Agtech launches 5,000ha commercial carbon farming pilot
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RLF AgTech has appointed Carbon West – a specialist in carbon projects registered under the Australian Federal Government’s Emission Reduction Fund (ERF) – to support the establishment and compliance management of its commercial soil carbon farming pilot program.
The 5,000 hectare (ha) pilot program consists of commercial farming locations where the company is in discussions with farm owners to enter into agreements for the registration of ERF carbon projects to generate Australian Carbon Credit Units (ACCUs) and sequester carbon using its Accumulating Carbon in Soil System (ACSS).
Carbon West currently acts as the Registered Agent for 12 ERF soil carbon projects with the Clean Energy Regulator and will help both RLF AgTech (ASX:RLF) and participating farmers navigate the complex process of establishing and maintaining land-sector carbon projects.
Carbon West will also work to have the pilot program registered with the Clean Energy Regulator ERF for the purpose of earning ACCUs.
Commercialising large scale ACCUs generation
The aim is to roll-out the ACSS process to generate ACCUs at scale in the 23 million ha Australian grain market.
Plus, the application of RLF AgTech’s ACSS in the ERF registered soil carbon project is expected to increase the sequestration of CO2 into the soil and provide farmers with additional sources of income through these actions.
The advantages include an increase in revenue through an increase in crop yields by 10-30%, a potential share in revenue earned from the generation of ACCUs; and costs saved from a reduction of up to 20% in the use of soil applied granular fertiliser.
“We look forward to testing and developing our ACSS alongside Carbon West for Australian farmers to not only build carbon in soil, but also provide them with additional benefits of yield increases and reduction of harmful soil applied fertilisers,” MD and CEO Ken Hancock said.
Registration the end goal
RLF says successful registration with the Clean Energy Regulator will be the next milestone in this pilot program.
Not to mention, the Australian Clean Energy Regulator’s carbon credit system is considered of a high standard in comparison to other integral carbon credit generation systems, providing the Company with a solid globally recognised foundation for the commercialisation of the ACSS into international carbon markets.
Carbon West founder and MD Jennifer West says they have the experience to help.
“Our experience in assisting land managers with ERF soil carbon project registration and compliance means Carbon West can add value in RLF AgTech’s important quest to help Australian grain producers to sequester carbon in soil,” she said.
The company’s pilot program will also allow it to develop a framework to be used in the application and execution of future projects, and act as a guide to the requirements for commercialisation at scale.
This article was developed in collaboration with RLF AgTech Limited, 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.
