Update on work towards potential Marsden Point biorefinery

In October 2024, Channel Infrastructure NZ Limited (Channel or Channel Infrastructure) (NZX: CHI) announced it had entered into a conditional project development agreement with Seadra Energy, in relation to the proposed development of a biorefinery at Marsden Point. Seadra Energy is partnering with consortium members Qantas, Renova Inc, Kent Plc, and ANZ. The Seadra consortium has completed its initial Front End Engineering and Design (FEED) study, and has now moved to the next phase of its project development work. The consortium’s work is now focused on completing the plant configuration for the Marsden Point site and updating the FEED study, commercial contracts with suppliers (including Engineering, Procurement and Construction contractor) and customers, confirming consenting requirements for site lease with Channel, plant build and operation of the biorefinery, and completion of financing arrangements, with the complexity of completing these workstreams meaning a final investment decision is now expected in 2026.

Channel Infrastructure Chief Executive, Rob Buchanan, said “Channel continues to work closely with Seadra and its consortium partners on this complex, but very exciting project. Should the project go ahead, this would represent a huge opportunity for Channel, Northland, and New Zealand, restoring fuel manufacturing at Marsden Point, and bringing a huge number of highly skilled jobs and investment into the region. It would also support fuel security for New Zealand, by establishing domestic manufacturing for biofuels and other products from domestically-sourced feedstock. We will provide further updates to the market as our work with the Seadra consortium continues.”

Should the biorefinery proceed, a substantial proportion of the proceeds from the sale of the decommissioned assets is likely to be reinvested by Channel in early demolition (already provisioned in the balance sheet), and growth capital expenditure associated with the construction of infrastructure and storage assets to the biorefinery, for above WACC returns with long-term contracted revenues.

Channel Infrastructure Chief Executive, Rob Buchanan, added: “Future fuels projects are highly complex and take time, but could provide significant fuel security benefits through manufacturing fuel from domestic feedstocks, in addition to aiding the long-term pathway for decarbonisation of aviation and heavy transport which remains reliant on emerging future fuels technologies. The unique combination of features and attributes of our Marsden Point site, which are unparalleled at any other industrial site in New Zealand, means Channel is well positioned to support both increased fuel security and New Zealand’s energy transition. Alongside future fuels manufacturing opportunities, Channel continues to be focused on other growth opportunities involving additional storage, progressing work on a proposed diesel-fueled electricity peaker and pursuing the acquisition of fuel terminal assets outside Marsden Point.”

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Authorised by:
Chris Bougen
General Counsel and Company Secretary

Contact details

Investor Relations contact:
Anna Bonney
[email protected]

Media contact:
Laura Malcolm
[email protected]

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