A carbon offset re-vegetation project in Australia has collapsed even though it had signed an agreement to sell 1 million offsets to Qantas for $13 per offset, according to media reports.
The offsets were to be generated from managing Henbury Station, a 500,000 acre natural landscape in the Northern Territory of Australia. Insolvency firm PPB Advisory is selling the 516,800ha Henbury Station after permission was granted by the Northern Territory and federal governments to return the property to being a pastoral lease.
The Henbury Station project was to earn carbon credits by removing cattle from the area to encourage re-vegetation, which will in turn remove carbon dioxide from the atmosphere and store the greenhouse in the soil and native plants. But financial problems saw project proponents of the project, RM Agricultural Holdings, placed in receivership last year. In a bid to sell the property the liquidator has announced stock will be allowed to return to the land.
Australian airline Qantas had signed a deal to buy up to 1 million offset credits from this project over five years to meet part of its liabilities under Australia's carbon pricing scheme and offer voluntary offsets to passengers. Media reports indicated that Qantas was paying $13 million for 1 million offsets under the deal.