FFI Green Hydrogen Scoping Study progresses to next phase

channelnz.com


NZX RELEASE
5 July 2023

FFI Green Hydrogen Scoping Study progresses to next phase
Channel Infrastructure (CHI), New Zealand’s largest fuel import terminal business based at Marsden Point in
Northland, has today announced that the scoping study for green hydrogen and synthetic Sustainable
Aviation Fuel (e-SAF) production at Marsden Point is now progressing to the pre-feasibility stage.
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Fortescue Future Industries (FFI) will now progress its study to the pre-feasibility phase, which will include
more detailed engineering and design studies and developing further detail on the economic viability of the
project, following a successful scoping study that assessed the overall viability of producing eSAF for the
domestic market at Marsden Point.
The pre-feasibility study will investigate a 300MW, c.60 million litres per-year e-SAF production facility at
Marsden Point, with the e-SAF to be distributed via the existing Marsden Point-to-Auckland Airport supply
chain, as well as further analysis of the project’s benefits to New Zealand, including the potential provision of
large-scale demand response, enabling electricity to be released to the grid when needed.
The pre-feasibility phase of the project is being supported by the government through EECA (the Energy
Efficiency and Conservation Authority). Underpinning government support is the potential demand response
benefits that the facility could provide to the electricity market and ultimately New Zealand businesses and
households.
Commenting, Channel Infrastructure CEO, Rob Buchanan, said: “Throughout our transition, Channel
Infrastructure’s priority has been to assess every opportunity to utilise the existing assets and infrastructure
that we have at Marsden Point to support a stable and secure fuels supply chain. At the same time, we want
to pursue opportunities that have the potential to contribute to New Zealand’s wider decarbonisation efforts
and energy transition, and bring the potential for new jobs for Northlanders. During the next phase we will
work with FFI on developing the commercial model for Channel, including how we leverage our strategic
asset base, available land at Marsden Point and our pipeline to Auckland for this exciting project.”
FFI has signed a Memorandum of Understanding with Air New Zealand to further their mutual interest in
investigating eSAF production and eventual use in New Zealand, with the initial focus being on Air New
Zealand becoming the foundation customer for eSAF produced through the Marsden Point project once it
becomes commercially available and economically viable. FFI has also entered into MOUs with Mercury,
Manawa Energy, Yinson Renewables and Top Energy to support the provision of renewable electricity for
the project.


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In December 2021 FFI and Channel Infrastructure announced a Memorandum of Understanding to investigate the
commercial and technical feasibility of production, storage, distribution, and export of industrial-scale green hydrogen
from Marsden Point. The investigation is now focused on the manufacture of e-SAF, a synthetic aviation fuel, which can
be produced by combining green hydrogen and carbon dioxide to produce a hydrocarbon from which Sustainable
Aviation Fuel can then be produced. It is a drop-in fuel that can be easily stored, transported and distributed using
existing infrastructure.

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Authorised by:
Chris Bougen
General Counsel and Company Secretary
Investor contact
Anna Bonney
investorrelations@channelnz.com

Media contact
Laura Malcolm
communications@channelnz.com
+6421 02363 297

About Channel Infrastructure NZ
Channel Infrastructure is New Zealand’s leading fuel infrastructure company. Channel Infrastructure owns
critical infrastructure, supplying the Northland and Auckland markets, which make up 40% of New Zealand’s
transport fuel demand and all of the jet fuel to the Auckland International Airport. Utilising the deep-water
harbour and jetty infrastructure at Marsden Point, as well as 280 million litres of storage tanks, and the 170-
kilometre pipeline from Marsden Point to Auckland we receive, store, test and distribute fuel owned by our
customers. Channel Infrastructure’s wholly-owned subsidiary, Independent Petroleum Laboratory Limited,
provides fuel quality testing services at Marsden Point and around New Zealand.
Channel Infrastructure is well positioned to support New Zealand’s changing future fuel needs, with growth
opportunities at the Marsden Point site including additional fuel storage to support fuel security, and work
underway with customers and partners on biofuel and hydrogen opportunities.

For more information on Channel Infrastructure, please visit: www.channelnz.com