The Soil Carbon Feasibility Process Explained

Let’s quickly recap, what is a soil carbon project?

A soil carbon project at CFF is typically run under the ACCU Scheme’s Estimation of Soil Organic Carbon Sequestration using Measurement and Models methodology. Participating in a soil carbon project involves managing your land in a way that increases the amount of carbon stored in your soil. By building these soil carbon stocks beneath the ground, you are removing emissions from the atmosphere. This removal, and the resulting increase in your soil carbon stocks, earn you Australian carbon credit units (ACCUs).

A few nifty tricks before you request a feasibility report

Interested in working with CFF to assess soil carbon project feasibility at your farm? Here are a few handy resources we recommend checking out in advance:

• Check out our Soil Carbon 101 article, outlining the basics of soil carbon projects, if you haven’t already!
• Check your operation’s eligibility, by checking off our Eligibility Checklist.
• Use the government’s LOOC-C tool to see if a soil carbon project could be an option at your place.
• Watch our Q&A Webinar recording where we break down a native tree carbon project.
• Check out our Soil Carbon Project Guidebook

Should I get an agronomist to undertake some soil tests and provide advice before proceeding? 

We reckon this is a pretty good shout. Soil carbon science is complex and regionally specific. That’s why we recommend finding a suitably skilled advisor to help you understand how to build soil carbon at your place. We also recommend keeping them on for the duration of a soil carbon project to guide your strategy on the ground. 

However, we can rely on regional soil data and existing analysis of your planned activities to do a deep dive into the financials. So, our feasibility reports can be a low-cost way to assess your opportunity before choosing to invest in long-term agronomic support. 

Whether chicken or egg comes first is up to you. We’re here to help you make the decision that makes the most sense for your operation. 

The Feasibility Process

Here at the CFF, we want to make the process of determining the feasibility of a carbon project as smooth and informative as possible. Our feasibility services unpack all the financial and practical nuts and bolts involved in a carbon project. This advice will help you optimise a carbon project’s returns, costs, and co-benefits.

Let’s break down the steps involved…

Step 1: Opportunity Assessment

Have a chat to our project facilitators about your potential project. We can sense check your project’s eligibility and viability with a few key pieces of information. If your project stacks up at this stage, then it’s time to move into the in-depth eligibility and business-case analysis offered by our feasibility services.

Step 2: Pre-Feasibility Presentation and Q&A

Want to dig further? We suggest you order a feasibility presentation, so we can give you and your stakeholders a clear financial breakdown of your carbon project. The presentation will:

• Explain eligibility criteria so you can check you tick all the boxes
• Provide a snapshot of your project’s potential carbon yields, costs, profits, cash flow, risks and success factors.
• A breakdown of the different service offerings and their costings.
• A comprehensive Q&A session, so you can clearly understand your next steps and operational & budget considerations.

Step 3: Feasibility Report

If you’re keen to proceed with your project, the CFF can pull together a tailored feasibility report. This in-depth document goes the whole hog to help you understand all the nuts and bolts involved in a carbon project, tailored to your land and your operation.

The feasibility report unpacks:

• A comprehensive analysis of the eligibility, suitability, risks & success factors of your carbon project.​
• Tailored recommendations to enhance returns and support your business case.​
• Comprehensive scenario comparisons of yield, costs, gross profits and cashflow – giving you the full picture.
• A simple accompanying guidebook with essential information to deliver a successful and compliant project.

With this report in hand, you can develop a detailed risk assessment and financial budget for your project.  Our feasibility report is all you need to get the bank onboard with your project.

Outline of the Feasibility Report

Executive Summary: Summary tables outlining how implementation costs, lifetime costs, carbon yield and the carbon price will impact your project’s financial outcomes – including the total carbon credit amount, gross profit for the project and per hectare, internal rate of return and net present value.

Desktop Assessment: Here we analyse the range of applicable carbon yields, assess eligibility requirements and provide an outline of any available grants or co-benefit programs.

Cost Drivers: Detailed information on project set-up costs and ongoing compliance costs for different cost scenarios (low, medium and high) with recommendations to harness cost-savings with a DIY approach.

Revenue Drivers: In-depth analysis and recommendations based on carbon yield, carbon price and project permanence.

Performance: This section unpacks key profitability metrics and provides a detailed cash flow model over the 25-year crediting period.

Next Steps: We make the pathway forward clear so you can move forward with confidence and hit key milestones in time to ensure project success. 

Great, how much do those services cost?

Ready to find out more?

Explore our range of educational resources in our Carbon Farming Education Hub where we frequently publish educational articles, webinars, and guidebooks. 

When you’re ready to explore the feasibility of undertaking a carbon project on your property, email us at hello@carbonfarming.org.au or give us a bell at (08) 6835 1140 to be connected with one of our project facilitators.

Disclaimer: The service fees outlined in this document are relevant at the time of publishing. We endeavour to keep our service fees up to date across the Carbon Farming Foundation content, however, suggest reaching out to our team (at hello@carbonfarming.org.au) prior to embarking on a pre-feasibility presentation or feasibility report, to ascertain the most up-to-date costings.