Channel Infrastructure Advances Marsden Point Biorefinery with Fertiliser Expansion and Asset Sale

Asset Sale Eases Redevelopment Costs

Channel Infrastructure NZ Limited (NZX:CHI, ASX:CHI) has taken a pragmatic step forward in preparing the Marsden Point Energy Precinct for its ambitious biorefinery project by selling the fully decommissioned CCR Platformer unit. The sale to Integrate Scope DMCC will bring in US$5.95 million, with an initial deposit of US$1.2 million paid on signing and the remainder spread over FY27 in line with dismantling and shipping schedules. Crucially, this transaction removes approximately NZ$3 million of demolition expenses previously provisioned by Channel, easing the financial burden of site redevelopment.

Biorefinery Project Expands into Fertiliser Production

The Marsden Point Biorefinery, led by Seadra Energy and backed by a consortium including Qantas, Renova, Kent, ANZ NZ, and Air New Zealand, has broadened its vision beyond biofuels. The project will now also manufacture fertilisers from byproducts of the biorefining process, thanks to a new alliance with Ballance Agri-Nutrients Limited. This expansion aims to provide a regional fertiliser supply solution, complementing existing production at Kapuni and imports. The biorefinery’s product slate will include biodiesel, sustainable aviation fuel (SAF), and urea-based fertilisers, all derived from biogenic feedstocks sourced from agricultural and municipal waste streams.

Early Contractor Involvement Phase Initiated

With the project scope extended, the consortium is moving into the early contractor involvement (ECI) stage to refine costings, scheduling, and design. This phase is critical to advancing towards a final investment decision. Despite the scope change, the overall project timeline remains on track. The plant is designed to produce up to 400 million litres annually of drop-in renewable fuels, enhancing New Zealand’s resilience against global supply chain shocks and contributing to fuel security.

Significant Private Investment and Regional Impact

The Marsden Point Biorefinery is poised to mobilise over $1 billion in private sector investment, combining new greenfield construction with repurposed refinery infrastructure. Channel Infrastructure’s CEO Rob Buchanan highlighted the project’s transformative potential for Northland, noting the creation of hundreds of jobs and increased economic and fuel security. The project remains contingent on securing funding, finalising commercial agreements, and obtaining regulatory approvals.

Strategic Consortium Backing Reinforces Project Momentum

Consortium members expressed confidence in the expanded project scope. Kent’s Senior VP Carl Titchmarsh emphasised the alignment and commercial momentum supporting the biorefinery’s role in New Zealand’s sustainable fuel and industrial manufacturing future. Seadra Energy’s Noor Begum pointed to the involvement of Air New Zealand and Qantas as a signal of the project’s importance in establishing a domestic sustainable aviation fuel supply chain. ANZ NZ’s Stuart McKinnon underscored the project’s contribution to national energy resilience.

Channel Infrastructure’s Strategic Positioning

Channel Infrastructure remains New Zealand’s largest fuel import terminal operator, managing 40% of the country’s transport fuel, including 80% of jet fuel. Its Marsden Point site, with extensive storage capacity and pipeline infrastructure, is central to the nation’s fuel supply chain. The company’s ongoing initiatives, such as the government contract for additional diesel storage, complement the biorefinery project by reinforcing fuel security and supporting the energy transition. Channel’s ability to repurpose over 350 million litres of tank capacity and its 45 hectares of freehold land position it well to back future greenfield fuel storage and renewable fuel manufacturing opportunities.