Carbon Conscious commences eucalypt planting

THE BOURSE WHISPERER: Carbon forestry project developer Carbon Conscious has welcomed the seasonal rainfall, which has allowed it to commence planting for the 2012 season.

During the 2012 season, 10,000 hectares of mallee eucalypt trees will be planted in the wheatbelt region of New South Wales.

 

Planting seedlings. Source: Company

 

The company released profit guidance to the market in January of $3.5 million Net Profit After Tax, which it said it is on track to achieve.

“Under our 2012 contract arrangements, the company will receive revenue in line with our earnings guidance for this financial year,” Carbon Conscious chief executive officer Peter Balsarini said in the company’s announcement to the Australian Securities Exchange.

“Carbon Conscious has received a client payment of approximately $5 million for planting commencement and will receive a further $5 million on completion of planting.

“Rainfall in key planting areas has expedited site preparation and more than 10 million seedlings provided by seven local nurseries are scheduled for delivery over the next eight to 10 weeks.”

In addition to the revenue received at the time of planting, Balsarini said once Carbon Conscious completes this season’s planting it will have secured a 15 year revenue stream.

“At the completion of the 2012 planting program, Carbon Conscious will have approximately 19,000 hectares of plantings under management across Australia and New Zealand,” Balsarini continued.

“Ongoing contract revenue associated with existing projects will exceed $43 million over the next 15 years.”

Carbon Conscious said it has received a number of new client enquiries from organisations looking to meet carbon liabilities arising from the Clean Energy Act 2011.

There has also been much interest from New Zealand companies with liabilities under the New Zealand Emissions Trading Scheme (ETS).

“We are seeing growing interest from a range of sources seeking our internationally compliant carbon credits,” Balsarini said.

“As more countries develop carbon pricing mechanisms, such as South Korea’s new cap-and-trade emissions trading scheme, there is increasing appetite for global carbon offset investments.

“We believe our low-risk, large-scale projects using proven technology will meet these investments and we are investigating additional project sites.

“Our initial expansion into the New South Wales wheatbelt will see approximately 1,000 hectares of mallee eucalypt plantings in 2012 with more land being identified for the 2013 planting season.”