en.Wedoany.com Reported - Channel Infrastructure has made new progress in the Marsden Point Energy Park redevelopment project, confirming the sale of a decommissioned refinery unit and expanding the scope of the proposed Marsden Point biorefinery.
The company has reached an agreement with Integrate Scope DMCC to sell and dismantle the decommissioned CCR Platformer unit as part of site preparation for the proposed biorefinery. Channel expects net proceeds of $5.95 million, with a $1.2 million deposit paid upon signing and the balance to be collected during the 2027 fiscal year when the unit is dismantled and shipped. The sale also eliminates approximately NZ$3 million in dismantling costs previously reserved by the company.
Channel also confirmed that the consortium developing the Marsden Point biorefinery has expanded the project scope to include fertilizer production in addition to renewable fuels. Led by Seadra Energy, the consortium includes Qantas, Air New Zealand, Renova, Kent, and ANZ New Zealand, with Ballance Agri-Nutrients recently joining to support the production and offtake of urea and other fertilizers derived from biorefinery byproducts. The expanded project is expected to produce biodiesel, sustainable aviation fuel (SAF), urea, and other fertilizers using biomass feedstocks, including agricultural and municipal residues.
The consortium stated that the plant could produce up to 400 million liters of renewable fuel annually, enhancing New Zealand's fuel security and resilience during global supply chain disruptions. The project is expected to attract over NZ$1 billion in private sector investment, combining new processing facilities with the reuse of the former Marsden Point refinery's infrastructure. The consortium will now enter the Early Contractor Involvement (ECI) phase to optimize project costs, schedule, and design in preparation for a final investment decision.
Channel Infrastructure CEO Rob Buchanan said the expanded project marks further progress in the redevelopment of the Marsden Point site. "The expansion of the Marsden Point biorefinery's scope reflects the continued positive momentum of the project. Making way for the project on our site is an important step, and we have found a potential way to repurpose and realize value from these decommissioned assets." He noted that producing direct replacement fuel products and fertilizers using local feedstocks at Marsden Point would enhance New Zealand's resilience to global supply chain disruptions and bring transformative change to the Northland region, creating hundreds of jobs and boosting New Zealand's economic and fuel security.
Kent Senior Vice President for Asia Pacific, Carl Titchmarsh, said the expanded project scope and commercial support enhance its potential. "The expanded project scope, strong alignment within the consortium, and growing commercial momentum reinforce its potential to become a cornerstone of New Zealand's future sustainable fuel and industrial manufacturing capabilities." Seadra Energy Senior Vice President of Commercial, Noor Begum, said 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 parties, and regulatory approvals.
