Commonwealth Bank funds $1m soil carbon pilot program launched by Perth company RFL AgTech

A Perth-based plant nutrition company has inked a $1 million partnership with the Commonwealth Bank to generate soil carbon credits through its technology as an alternative to existing carbon sequestration methods.

RLF AgTech started operations in 2009 and is chaired by former ASX-listed debt buyer Credit Corp chair Don McClay, with former farmer Kenneth Hancock — based in Perth — at the helm as managing director.

The company plans to use the cash to generate what it says are “high-quality” Australian Carbon Credits Units through its 100 per cent owned subsidiary RLF Carbon, which operates separately to its seed primers, soil and fertigation, and foliar products.

Mr Hancock said the carbon pilot trials would allow the company to “realise its vision” to use its proprietary technology to generate ACCUs and generate “agronomical benefits for farmers”.

“We are excited to be working with CBA and recognise the leading role they are playing in supporting innovative businesses which are focused on addressing the world’s climate change challenge,” he said.

CBA has provided the cash boost in the form of pre-purchased carbon credits to support farmers participating in RLF Carbon’s soil carbon commercial pilot program. It will cover the upfront costs associated with registering and managing the carbon project.

The alliance builds on CBA’s execution of a Letter of Intent with RLF in February 2022.

CBA Institutional Banking and Markets group executive Andrew Hinchliff said the bank was committed to being a leader in the development of Australia’s carbon market, and helping more agribusinesses unlock opportunities to participate in decarbonising.

“Our clients tell us financing is the biggest barrier to mobilising carbon credit supply, with capex needed to support the development of emerging carbon sequestration methods and technologies,” he said.

“A thriving carbon market is a significant economic opportunity for Australia and will play a vital role in the path to net zero.

“We want to play a leadership role in the development of this market and we look forward to collaborating with other Australian innovators to support piloting and scaling carbon projects across the country.”

RLF AgTech’s carbon pilot program aims to show how its products and technologies can sequester soil carbon at scale.

It also wants to demonstrate how slashing fertiliser use by 20 per cent can also reduce on-farm emissions.

The company claims to be different than other soil carbon projects through its developed a proprietary system — ‘Accumulating Carbon in Soil System’ — for which a provisional patent has been filed.

The patent covers the methodology for a sustainable system, including the use of RLF’s high quality plant nutrition technology.

It products to allow farmers to potentially generate ACCUs and reduce farm emissions while achieving higher crop yields, better quality food and increased on-farm profits.

The pilot program will span 5000 hectares of prime Australian farmland and represents a major step in the development of RLF AgTech’s strategy to monetise the generation of ACCUs at scale in the 23 million hectare Australian grain market.

RLF AgTech has developed technology that produces a bigger plant root system for improved nutrient uptake, more robust crops, improved water use and healthier soils with the aim of capturing a greater slice of the $230m global fertiliser market.

The carbon pilot program will be overseen by Carbon West, with RLF AgTech hopeful the program will be registered as an Emission Reduction Fund Project with the Clean Energy Regulator.