New Zealand’s only refinery to be repurposed for biofuel production
The former Refining New Zealand site at Marsden Point could be making a comeback with renewable biofuels. Channel Infrastructure NZ Limited (CHI), who owns the refinery, announced a conditional agreement with Seadra Energy and a consortium of partners to develop a biorefinery at the location.
“Channel Infrastructure has considered several options to dispose of the decommissioned hydrocracking assets and other unused assets on its site. Having undertaken a global sale process for the decommissioned assets over more than two years, and recognising that disassembling and shipping these assets offshore creates considerable complexity for prospective purchasers, we are confident that the proposed Marsden Point biorefinery project provides the best opportunity for Channel to realise proceeds from this sale process at this time,” said Channel Infrastructure CEO Rob Buchanan.
The site will produce sustainable aviation fuel (SAF), HVO and other biofuels.
The consortium includes major players like Qantas, Renova, Kent, and ANZ Bank.
“SAF will be critical to decarbonising the aviation industry. Qantas has set a 10% SAF target for 2030 and is investing in the development of SAF production through its $400m climate fund. This includes early investment in the development of the biorefinery at Marsden Point. New Zealand and the Pacific are a key part of our network and we’ve recently announced an increase in our trans-Tasman services by up to 50% from October 2024,” according to Qantas, part of the consortium working to develop the site.
Previously, Seadra had planned to purchase decommissioned assets from the refinery for relocation. However, after exploring various options, they determined that utilising the existing infrastructure at Marsden Point for a biorefinery would be a more efficient approach.
The biorefinery would utilize some of the existing refinery assets, which would be refurbished and repurposed. Additionally, it would leverage existing storage tanks, jetties, and other infrastructure on the site. The project would also require approximately 18-20 hectares of land.
Importantly, the proposed location for the biorefinery would not interfere with the previously announced project for sustainable aviation fuel production at Marsden Point.
The next step for the project is for Channel and Seadra to collaborate and finalise the investment decision by the second half of 2025. Several key commercial agreements have already been outlined, including the sale of existing assets by Channel to Seadra, land lease agreements, and access to additional infrastructure for fees.
The final decision to proceed will depend on finalizing binding agreements and securing debt financing advised by ANZ bank.
Earlier, Air New Zealand announced that it plans to remove its 2030 science-based carbon intensity reductions target and withdraw from the Science Based Targets initiative (SBTi) immediately amid challenges to upgrade fleet, lack of SAF supply and inadequate global policy and regulatory support.