Plans to introduce biofuel manufacturing at Marsden Point have taken a step forward, with the Seadra Energy consortium completing the initial engineering design phase for a proposed biorefinery at the Northland site.
The consortium, which includes Seadra Energy, Qantas, Renova Inc, Kent Plc, and ANZ, is now progressing to the next phase of project development, focused on refining the plant configuration, finalising commercial contracts, and confirming site consenting and financing arrangements.
The project is being developed in partnership with NZX-listed Channel Infrastructure NZ Limited, which owns the Marsden Point site. The two parties entered into a conditional project development agreement in October 2024.
Due to the complexity of the remaining workstreams, a final investment decision (FID) is now expected in 2026.
Channel Infrastructure chief executive Rob Buchanan says the project holds major potential for both the region and the country.
“Channel continues to work closely with Seadra and its consortium partners on this complex, but very exciting project,” Buchanan says.
“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.”
If the project proceeds, Channel says it expects to reinvest a significant portion of proceeds from the sale of decommissioned assets into demolition work and new infrastructure to support the biorefinery. This would include growth capital expenditure delivering long-term contracted revenue and returns above the company’s weighted average cost of capital.
Buchanan says the opportunity comes at a critical time as the transport and aviation sectors seek new solutions for decarbonisation.
“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.”
