The Fasera group was founded in 2005. We are a leader in sustainable agricultural carbon sequestration through our managed estates of Australian oil mallee and other eucalyptus trees and through our generation and production of:
- Carbon Credits (including CO2 Removal Certificates) - certificates that independently verify carbon sequestration and which can be used by companies to offset their CO2 emissions, or the equivalent of greenhouse gas emissions;
- Biochar - a charcoal like substance that is produced from plant biomass which ‘locks up’ atmospheric carbon and can be stored in the soil where it benefits soil health and reatins water while lowering atmospheric CO2 levels;
- Wood Vinegar - a natural herbicide and bio-stimulant drawn from the condensed smoke of the pyrolyis process; and,
- Eucalyptus Oil - a high quality and low impurity oil distilled from the leaves of eucalyptus trees, specifically mallee trees, a genus of the family Myrtaceae.
The production of eucalyptus oil from the green biomass of mallee trees was incorporated into our business model in 2016.
Despite its higher cost, the demand for Australian eucalyptus oil has increased globally since 2017.
Essential oil consumers seek a high-quality product and have welcomed the traceability, authenticity and sustainability of Fasera oil after decades of importing low quality oils produced from Australian blue gum eucalyptus trees grown in China.
Pharmaceutical, fragrance and flavouring markets also prefer the high cineole (eucalyptol) content and the high quality of our oil, which significantly improve the cost efficiency of producing essential oil through the rectification of eucalyptus oil.
Traditional forestry methods were unsuitable, difficult and costly for the harvest of thousands of hectares of multiple trunk, mature mallee trees in Western Australia.
Our investment in research and the development of new techniques and equipment to optimise the large-scale harvest of mature mallees has delivered significant operational and cost improvements, and an increase in available resources.
Coppicing (regrowth from mature lignotubers after harvesting) has proven to be most effective in improving long-term carbon sequestration outcomes and oil production, as well as increasing resource availability and yields for biochar and wood vinegar production.
Harvesting facilitates coppice regeneration, with an increase in biomass and oil yield, and with considerably higher carbon capture than compared with trees left to mature, where carbon retention peaks and stabilises. The process generates sustainable and continuous/ongoing harvest cycles into the future.
In 2010, after several years spent researching, acquiring land/related assets and formalising agreements with various farmers/landowners in Western Australia, Fasera commenced generating carbon credits in the form of Australian Carbon Credit Units (ACCUs).
At that time, Fasera was at the industry forefront of companies operating within an Australian government approved framework for forestry/tree planting for the purpose of carbon sequestration on behalf of third parties. Generally known as environmental plantings, this methodology is still recognised as producing ACCUs of the highest integrity.
In addition to ACCUs, Fasera is continuing work to achieve accreditation to generate compliant CO2 Removal Certificates (CORCs) from biochar production; we are also trialling the generation of international carbon credits from other approved activities.
In addition to ACCUs, Fasera is continuing work to achieve accreditation to generate compliant CO2 Removal Certificates (CORCs) from biochar production; we are also trialling the generation of international carbon credits from other approved activities.
Our state-of-the-art continuous pyrolysis plant which processes the harvested and distilled (spent) oil mallee biomass is located adjacent to our oil distillery and was commissioned in 2022.
At capacity, the plant pyrolyses ~5,000 tonnes of spent biomass to produce ~5,000 cubic metres of biochar per annum. The biochar comprises about 80% organic carbon, of which 90% is expected to remain stable when placed in the soil for at least 100 years.
Wood vinegar production from 5,000 tonnes of biomass is approximately 900 tonnes per annum.
Biochar and wood vinegar sales are rapidly becoming a significant revenue driver for Fasera.
Biochar and wood vinegar production is expected to grow to around 14,300 cubic metres of biochar and 2.75 ML of wood vinegar per annum by FY2030/31.
In addition to biochar, wood vinegar, and eucalyptus oil production, we produce and sell Australian Carbon Credit Units (ACCUs) and will produce and sell international carbon credits generated from the production of biochar, as well as from carbon sequestration through reforestation under new international methodologies.
The Australian Regulatory Environment and Fasera
In 2010 the Carbon Pollution Reduction Scheme (CPRS) was introduced by the Australian government. The CPRS existed as an emissions trading scheme, providing a cap.
In 2011, government policy changes led to a new framework - the Carbon Pricing Mechanism (CPM, or the Carbon Tax) - to replace the CPRS.
Following these regulatory changes, some of Australia’s largest emitters commissioned Fasera to plant thousands of hectares of trees on their behalf to generate carbon offsets.
Kyoto compliant ACCUs remain the highest value carbon credits in the voluntary market in Australia.
With a change of government in 2013, Australia’s policy position switched from a Carbon Pricing Mechanism (CPM) to an Emissions Reduction Fund (ERF).
The ERF remains the Australian government’s method for using taxpayer funds to acquire Kyoto-compliant Australian Carbon Credit Units (ACCUs).
The ERF is also used to generate highly sought-after ACCUs on a secondary (voluntary) market which can be purchased through a cap and trade compliance market (the SafeGuard mechanism).
From early this century, a voluntary market for carbon credits has existed for any entity seeking to offset carbon emissions. This market is expanding rapidly.
Kyoto compliant ACCUs remain the highest value carbon credits in the voluntary market in Australia. This market gained momentum in 2020 and continues to improve due to increasing demand from large corporate entities.
In 2015, Fasera acquired the assets of Kalannie Distillers situated in the north-eastern wheat belt of Western Australia, which was producing and marketing eucalyptus oil in competition with oil produced in China from Australian origin blue gum (Eucalyptus Globulus) trees.
Our oil distillery and pyrolysis plant are co-located to reduce operational costs, improve efficiencies and utilise heat generated in pyrolysis to reduce energy demands when generating steam for the distillation process to produce oil.
Despite its higher cost, demand for high quality eucalyptus oil is increasing globally. Essential oil consumers are discerning customers seeking a high-quality product. They recognise and appreciate the traceability, authenticity, quality and sustainability of Fasera’s Australian eucalyptus oil after decades of importing low quality oil sourced from China. Pharmaceutical, fragrance and flavouring companies also recognise the naturally high cineole (eucalyptol) content of our oil, which makes the rectification process to produce essential oil much more cost efficient.
Through our ongoing investment, research and development we’ve increased eucalyptus oil production from 1,000 Kg to 100,000 Kg per annum and now service domestic and international markets through our wholly-owned subsidiary Kochii Eucalyptus Oil. We forecast continued growth in our eucalyptus oil production over the next 10 years to about 260,000 Kg per annum by FY2030/31.
Through our ongoing investment, research and development we’ve increased eucalyptus oil production from 1,000 Kg to 100,000 Kg per annum and now service domestic and international markets through our wholly-owned subsidiary Kochii Eucalyptus Oil. We forecast continued growth in our eucalyptus oil production over the next 10 years to about 260,000 Kg per annum by FY2030/31.
If you’re an investor, farmer or wholesale purchaser and would like to stay informed about our current and planned future projects, please subscribe to our newsletter.