NSW property sale to test demand for registered carbon projects

Eric Barker, 04/08/2023

Kempton Station, near Inverell, has been put on the market with two carbon projects already set up.

A NEW South Wales property has gone on the market with the vendor hoping to attract buyers looking for both carbon credits and livestock production.

The 1956ha Kempton Station near Inverell, owned by a Sydney-based investor, is forecast to generate more than 310,000 Australian Carbon Credit Units over 25 years, net of developer fee with the potential of biodiversity projects, while running 300 breeders. The property was purchased by the investor 18-months-ago, who has set up the two carbon projects before putting it back on the market.

Nicholas Clancy from Oxley Capital Partners, who is acting as the transaction advisor, said the vendor was keen to test demand for carbon credits from companies both within agriculture and other industries. The property is being sold in conjunction with McCullough Agencies.

“It is a great opportunity for some of these groups who require offsets to acquire something at the ‘coal face’ and generate carbon credits themselves rather than just buying carbon credits from the open market,” Mr Clancy said.

“We have had good interest from some of those groups because they can get benefits from the land as well as the carbon credits needed to offset their operations.

“With a footprint of close to 2000ha in a reliable 800mm rainfall area at the top of the New England, there a great opportunity for a cattle producer the buy the property and have the added benefit of carbon credits on the side.”

As has been reported by AgProperty Central, there has been many transactions of properties carrying carbon projects in the mulga lands of Western NSW and Qld.

However, Mr Clancy said few have sold properties with carbon in the higher rainfall areas like Kempton.

“We often see properties advertised with ‘carbon potential’, but this vendor has decided to go one step further and put it on the market with already set up carbon projects,” he said.

“The vendor was quite smart in the way he has developed these projects because it was all about synergy between carbon projects and cattle production.

“Cattle production has been at the centre of all the decisions and made sure the projects fit around that – rather than putting a carbon project over the whole lot and not using it for anything else.”

638 Kempton Road Tinga from McCulloch Agencies on Vimeo.

What is in the carbon projects?

Currently Kempton has two projects registered:

  • A Human-Induced Regeneration project over 465ha, which is registered and expected to start generating Australian Carbon Credit Units after 2026
  • An Environmental Planting project over 199ha, which still requires $1.8m in capital to start in June 2024. Chances to management in regards of fencing, planting and monitoring, livestock and feral animal control over three years is necessary.

The property the property is forecasted to generate more than 310,000 ACCU’s over 25 years, net of developer fee, with the potential of biodiversity projects, while running 300 cows.

Kempton is predominately granite, with a range of land-types from moderately undulating cleared and shade timbered country through to creek flats with the potential for a lift in production with a fertiliser program.

The property has double frontage to the Moredun Creek, New Valley Creek , Sandy Camp Gully, Native Dog Gully, Bulls Camp Gully and Basin Creek along with numerous Springs. It has 33 dams and series of concrete troughs.

The property has a four bay lock up shed; a 16 x 7m three bay shed, with lock up workshop and single-phase power; 24 x 8m hay shed; 3 x 10t silos; and a 1 x 60t silo. It also has steel/timber cattle yards with a calf cradle and concreting loading race.









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  1. Nick Bradley, 07/08/2023

    This article is interesting. If i understand it correctly, the Environmental Planting Project has yet to be properly established, and to do this it will cost $9000 per hectare to plant the trees necessary to claim credits – is that correct? Also, how many of the forecast ACCUs are from the Planting Project and how many are from the Regeneration Project?

  2. Jamie Hansen, 06/08/2023

    So, some suit in Sydney has got all excited and speculated on a cattle property because he can see a fortune to be made in ‘natural capital’ (don’t you just love that name!) Then has gone and filled out all the forms to ‘register’ for these schemes but is hoping to pass the actual real cost onto the next guy. The property seems to have carried 300head before they lock a heap of it up for the carbon fantasy, but miraculously still carries the same amount after?
    But don’t worry, if you apply some fertilizer (congealed fossil fuels) to the place you can lift production. Hopefully, another early adopter suit from Sydney buys it off him and not an actual proper farmers who just hasn’t read the fine print about how no one has been paid on any of these schemes yet and that he now has the government on his property deed for a quarter of a century. If you don’t laugh you’ll cry.

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