Channel Infrastructure has taken another step towards the redevelopment of its Marsden Point Energy Precinct, confirming the sale of a decommissioned refinery unit and an expanded scope for the proposed Marsden Point Biorefinery.
The company has entered into an agreement with Integrate Scope DMCC to sell and remove the decommissioned CCR Platformer unit as part of site preparation for the proposed biorefinery.
Channel expects net proceeds of US$5.95 million, with a US$1.2m deposit payable on signing and the balance to be received during FY27 as the unit is dismantled and shipped. The sale also avoids about NZ$3m in demolition costs previously provided for by the company.
Channel also confirmed the consortium developing the Marsden Point Biorefinery has expanded the project’s scope to include fertiliser production alongside renewable fuels.
The consortium, led by Seadra Energy and including Qantas, Air New Zealand, Renova, Kent and ANZ New Zealand, has been joined by Ballance Agri-Nutrients, which will support the production and offtake of urea and other fertilisers manufactured from biorefining by-products.
The expanded project is expected to produce biodiesel, sustainable aviation fuel (SAF), urea and other fertilisers using biogenic feedstocks, including agricultural and municipal residues.
The consortium says the plant could produce up to 400 million litres of renewable fuel annually, strengthening New Zealand’s fuel security and resilience during global supply chain disruptions.
The project is expected to attract more than $1 billion in private sector investment and will combine new processing facilities with the repurposing of infrastructure from the former Marsden Point oil refinery.
The consortium will now enter the early contractor involvement (ECI) phase to refine project costs, scheduling and design ahead of a final investment decision.
Channel Infrastructure chief executive Rob Buchanan says the expanded project represents further progress for the redevelopment of the Marsden Point site.
“The broader scope of the Marsden Point Biorefinery represents continued positive momentum for this project. Making way for this project on our site is an important step, and it’s great we have been able to identify a potential way of reusing and realising value from these decommissioned assets as well.
“The manufacture at Marsden Point of drop-in fuel products and fertiliser using domestic feedstock will strengthen New Zealand’s resilience to global supply chain disruptions. This project would be transformational for Northland, creating hundreds of jobs and increasing New Zealand’s economic and fuel security.”
Kent senior vice president APAC Carl Titchmarsh says the project’s growing scope and commercial support reinforce its potential.
“The project’s expanded scope, strong consortium alignment and growing commercial momentum reinforce its potential to become a cornerstone of New Zealand’s future sustainable fuels and industrial manufacturing capability.”
Seadra Energy senior vice president of commercial Noor Begum says the involvement of Air New Zealand and Qantas strengthens the project’s potential to establish a domestic sustainable aviation fuel supply chain.
The biorefinery project remains subject to funding, commercial agreements between the parties and regulatory approvals.
