New Zealand Forestry Carbon Credits Gain Ground!
It was very quiet in New Zealand carbon last week as the market consolidated near recent highs – Spot NZUs settled at NZ$18.80. The last time NZUs were at this level was the middle of 2011.
By: Dunwold Farm, Waikato, New Zealand
Dunwold Farm, located 10km from Cambridge, South Waikato, New Zealand is a ready investment for discerning investors in New Zealand farm and forestry.
In two titles, it comprises 156 hectares of planted Pinus radiata, 70 hectares of native Kanuka stands, 12 hectares of New Zealand native and 41 hectares of grazing. This 279-hectare farm has carbon, trees, grazing, honey and property subdivision development options. Land and forest valuations are available for review from the owner, Peter Fairclough.
"Carbon emitters who are actively seeking carbon buying opportunities below the $20 should take a look at New Zealand," says Farm owner and Forester Peter Fairclough of Dunwold Forest and Farm, New Zealand.
The forestry is ground-based, harvestable and showing excellent growth rates through to its current age of 15/17 years making this a sold investment opportunity. In two plots, the greater is ready to harvest now and commercial quotes (available on request) indicate the potential for a net value after harvesting costs in excess of $1.6m.
For the longer game, take the 156 hectares @ circa NZ$19 carbon credit, and for the savvy investor, either bank roll your mortgage or offset as an emitter.
The active part of the emission year is yet to begin in New Zealand, but if history is anything to go by, Q4 2016 and Q1 2017 will be turning points. It's important to reiterate that demand is forecast to increase by 600,000 tonnes per month in 2017 which will grow to an extra 1.2 million tonnes per month in 2018. In 2019 onwards, it's a 40 million tonnes a year market which equates to a monthly demand of 3.33 million tonnes.
For the record, the monthly average through the OMF carbon desk since May 2015 is 1.2 million tonnes. The range was 255,000 to 2.5 million. "We do expect more volume to be unlocked as we move higher but we know that the price direction is entirely up to sellers as buyers have to participate,"
"The Dunwold Forest accumulates 8,345 NZU per annum which is 41,727 for a 5-year FMA tranch," says owner Pete Fairclough. His recommendation to emitters is to continue to actively secure volume below $20.
Dunwold Farm is Calling Investors:
For anyone interested in forestry or carbon credits on New Zealand's Dunwold Forest in the South Waikato, please contact: www.NZRuralProperty4Sale.com.
Valuations available on request.
Maree Neal Consulting - Press Services
+64 274 522 040