Channel Infrastructure NZ Ltd. has taken the next steps toward the redevelopment of its Marsden Point Energy Precinct, confirming the sale of its decommissioned equipment to make way for a proposed biorefinery.
The New Zealand-based fuel import terminal operator has agreed with Integrate Scope DMCC for the sale and physical removal of its fully decommissioned continuous catalytic regeneration (CCR) platformer unit.
The deal will deliver net proceeds of US$5.95 million (A$8.8 million) to Channel, including a US$1.2 million deposit upon signing, with the remainder paid in three instalments across the 2027 financial year.
The sale eliminates approximately NZ$3 million in demolition provisions that Channel had previously set aside for the unit’s removal.
The clearance works pave the way for the Marsden Point Biorefinery project, which is being progressed by an international consortium led by Seadra Energy. The group includes major airlines Qantas and Air New Zealand, alongside Renova, Kent, and ANZ NZ.
The consortium has also announced an expansion of the project’s scope to include the production of fertilisers using biorefining process byproducts.
To facilitate this, the group has formed an alliance with local agricultural cooperative Ballance Agri-Nutrients for production and offtake.
Utilising biogenic feedstock sources such as municipal and agricultural residues, the multi-purpose plant will now be capable of manufacturing biodiesel, Sustainable Aviation Fuel (SAF), and urea.
At peak capacity, it is expected to produce up to 400 million litres of low-carbon renewable fuels annually, heavily insulating New Zealand from global supply chain shocks.
Channel Infrastructure CEO Rob Buchanan said: “The broader scope of the Marsden Point Biorefinery represents continued positive momentum for this project.
“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.”
The consortium is now progressing into the early contractor involvement (ECI) phase to determine final costings, design, and scheduling ahead of a definitive final investment decision.