“Hammer has fallen” on the 12th ERF auction held in April 2021. Australian Integrated Carbon was a significant bidder, securing 28% of the volume.
Securing these contracts enabled AIC to protect the downside risk for its projects by locking in a minimum price required to be paid by the Australian Government, whilst providing the flexibility to identify opportunities to sell at a higher price to other off-takers. In taking this action AIC significantly de-risked the pricing volatility for its client landholders, so that the focus is on the return and to provide landholder certainty about achieving a minimum price.
As such AIC is positioned to engage with client landholders in a transparent way and maximise their return. AIC’s target price is the price that gets the best outcome for its client landholder balancing return and risk.