Channel Infrastructure NZ Limited (ASX: CHI) has announced significant progress in the redevelopment of its Marsden Point Energy Precinct, confirming a key asset sale and providing an update on the proposed biorefinery project. Channel Infrastructure, New Zealand’s largest fuel import terminal business, stores and distributes 40% of the nation’s transport fuel. The company has entered an agreement for the sale and removal of a fully decommissioned CCR Platformer unit, a critical enabling work for the construction of the proposed Marsden Point Biorefinery.
Under the agreement with Integrate Scope DMCC, Channel Infrastructure will receive net proceeds of US$5.95 million from the sale of the CCR Platformer unit. This includes an immediate net deposit of US$1.2 million, with the balance paid in three instalments across FY27, aligning with the deconstruction and shipping schedule. This transaction is also expected to negate approximately NZ$3 million from Channel’s demolition provision related to the CCR unit, representing a direct cost saving.
The company also provided an update on the Marsden Point Biorefinery project, developed by a consortium including Seadra Energy, Qantas, Renova, Kent, ANZ NZ, and now Air New Zealand. The project’s scope has expanded to include fertiliser manufacturing from biorefining byproducts, facilitated by an alliance with Ballance Agri-Nutrients Limited. The proposed facility will produce biodiesel, Sustainable Aviation Fuel (SAF), urea, and other fertilisers, all from biogenic feedstock.
This expansion, mobilising over $1 billion of private investment, aims to produce up to 400 million litres per year of low carbon renewable fuels, strengthening New Zealand’s fuel resilience. The consortium is now commencing the Early Contractor Involvement (ECI) phase for final assessments of project costing, scheduling, and design, working towards a final investment decision. Channel Infrastructure’s Chief Executive, Rob Buchanan, commented on the positive momentum, highlighting the project’s potential to reuse decommissioned assets, create jobs, and enhance New Zealand’s economic and fuel security. The project remains subject to successful funding, commercial discussions, and regulatory approvals.
