Marsden Point Energy Precinct Concept released

channelnz.com


NZX RELEASE
24 October 2024
Marsden Point Energy Precinct Concept released
Channel Infrastructure NZ Limited (NZX:CHI) has today released the long-term vision for its Marsden Point
site as an Energy Precinct, outlining how the Company could accommodate a range of energy projects that
would boost New Zealand’s energy resilience and help support the decarbonisation of New Zealand.
Commenting, Channel Infrastructure Chair James Miller said: “Today we are presenting our vision for Marsden
Point to become an Energy Precinct for New Zealand. This could bring significant benefits to regional New
Zealand and, with the combination of projects we consider could fit together on our site, could provide a
significant boost to New Zealand’s overall energy and fuel resilience. For Northland, additional projects of this
scale that would see manufacturing restored at Marsden Point could also bring important investment, with the
retention of a skilled contractor base supporting economic growth in Northland.”
Channel’s Marsden Point Energy Precinct Concept, released to investors today, provides a long-term pathway
to seek to unlock significant value over time as high-quality tenants are attracted to the currently 120 hectares
of unutilised land and the ancillary infrastructure and services that Channel can provide at the site. The plan
highlights the significant role for the site in supporting New Zealand’s energy transition, through potential
opportunities such as additional storage, lower-carbon fuels manufacture, as well as a range of potential
electricity firming and storage opportunities. The execution and delivery of the Energy Precinct Concept would
position Channel Infrastructure well to support the energy transition.
Commenting, Channel Infrastructure CEO Rob Buchanan said: “Our Company strategy is focused on
maximising the long-term value of our land and utilisation of our existing assets such as our storage assets,
jetty and pipeline, by attracting tenants drawn to Channel’s land and complementary offering of infrastructure
assets. Executing on these opportunities would build additional long-term, diversified, contracted revenue that
is not dependent on fuel volume, from its current level of around 50 percent, while boosting New Zealand’s
energy resilience, and supporting decarbonisation.”
Today Channel has also released details of Envisory’s updated fuel demand outlook for Marsden Point. The
updated outlook continues to show that Channel’s long-term business will be underpinned by jet fuel demand
and the need for a liquid fuel decarbonisation pathway for aviation, albeit the near-term demand may be
impacted by economic conditions and aircraft availability. Today’s Envisory outlook indicates that, if realised,
an additional 2.5 billion litres of fuel would flow through Channel’s infrastructure over the next 26 years, which
equates to around an additional 140 million litres per year over the next 10 years. Detail of the updated outlook
can be found at www.channelnz.com/investor-centre/reports-presentations/
Accompanying this announcement is a presentation which the Channel Infrastructure leadership team will
present today. No update to the 2024 financial guidance will be provided at today’s presentation.
- ENDS –

channelnz.com
Webcast details
Channel’s leadership team will present the vision for the Marsden Point Energy Precinct, at 10am (NZT)
today. To listen to the webcast and submit questions, please register at
https://channelinfrastructure.brandlive.com/Investor-Presentation-2024/en.
Investors will be able to submit questions. While every endeavour will be made to answer questions that are
submitted, this may not be possible due to time constraints. An online archive of the event will also be
available after the event.

Marsden Point Energy Precinct Concept



Authorised by:
Chris Bougen
General Counsel and Company Secretary

Investor Relations contact
Anna Bonney
Investorrelations@channelnz.com

Media contact
Laura Malcolm
communications@channelnz.com

channelnz.com

About Channel Infrastructure NZ
Channel Infrastructure is New Zealand’s largest fuel import terminal, storing and distributing 40% of New
Zealand’s transport fuel, including 80% of New Zealand’s jet fuel. We receive, store, test and distribute
petrol, diesel, and jet fuel that our customers import and supply to Auckland and Northland.
Fuel is imported via our deep-water harbour and jetty infrastructure at Marsden Point and stored in more
than 290 million litres of contracted storage tanks on site. The fuel is then distributed via our 170-kilometre
pipeline to Auckland, or by our customers (bp, Mobil, and Z Energy) via truck into Northland. We underpin
the resilience of New Zealand’s fuel supply chain with our tank capacity, which enables increased storage of
fuel in New Zealand, and through efficient, low-emission distribution of the fuel into the Auckland market.
Given our proximity to Auckland, and critical role in the jet fuel supply chain, Channel is well positioned to
support the renewable fuel transition in New Zealand.
Our plan for growth includes supporting fuel resilience for New Zealand through additional fuel storage on
our site, unlocking the strategic value of the Marsden Point Energy Precinct Concept which reflects the
significant role Channel could play in supporting New Zealand’s energy transition – through potential
opportunities including supporting the manufacture of lower-carbon future fuels, as well as a range of
potential energy security opportunities, and exploring expansion beyond Marsden Point through the
acquisition of other terminals infrastructure in New Zealand.
Channel Infrastructure’s wholly-owned subsidiary, Independent Petroleum Laboratory Limited, provides fuel
quality testing services throughout New Zealand.
For more information on Channel Infrastructure, please visit: www.channelnz.com

---

Heavy Industrial Zoning
Marsden
Point
Energy
Precinct
Concept
24 October 2024
Helping fuel New Zealand's
future to 2050 and beyond

Welcome and Introduction
Rob Buchanan, Chief Executive Officer
World-class Operator – providing resilient
infrastructure and unlocking growth opportunities
Jack Stewart, GM Operations
Fuel demand outlook
Peter van Cingel, Business Development Manager
Marsden Point – a unique and highly strategic site
Peter van Cingel, Business Development Manager
Strategic Energy Precinct Concept
Rob Buchanan, Chief Executive Officer
Wrap up and Q&A
Agenda

Welcome and
Introduction
ROB BUCHANAN, CHIEF EXECUTIVE OFFICER

Long-term pathway to unlocking significant value over time as high-quality tenants are attracted to the
120 hectares of unutilised land and ancillary services Channel can provide
Energy Precinct could help underpin New Zealand’s energy and fuel security and resilience as well as
create significant economic value, both for Northland and New Zealand
This strategy will position Channel Infrastructure well to support the energy transition
Energy Precinct Concept focused on building additional long-term, diversified, contracted revenue that is
not dependent on fuel volume, with ~50% of Channel’s current revenue fixed and not dependent on fuel
volume throughput
Long-term fuel outlook update continues to support Channel’s business, underpinned by jet fuel demand
and a liquid fuel decarbonisation pathway for aviation, albeit the near-term may be impacted by
economic conditions and aircraft availability
An energy precinct for New Zealand

Experienced and Proven Leadership Team
Rob Buchanan
Chief Executive Officer
Jack Stewart
GM Operations
Alexa Preston
Chief Financial Officer
Peter van Cingel
Business Development Manager
Chris Bougen
General Counsel and
Company Secretary
Steve Levell
GM Independent Petroleum
Laboratory (IPL)

Helping fuel New Zealand’s future to 2050 and beyond
OUR VISION
World-class energy infrastructure company
OUR PURPOSE
Delivering resilient infrastructure solutions to meet changing fuel and energy needs
OUR STRATEGIC PRIORITIES
Strong safety
systems and
culture
Resilient
infrastructure
Long-term asset
management
Customer focused
People and
capability
development
Future focused
Continuous
Improvement
Adaptive
Repurposing
Marsden Point
Support transition
of aviationto lower
carbon fuels
Marsden Point
Energy Precinct
Concept
Brownfield
opportunities at
Marsden Point
Consolidator of
fuels infrastructure
Supply chain
optimisation for
our customers
Reducing
environmental
impacts
Community
engagement and
iwi relations
Just transition
Transparency and
disclosure
Target credit
metrics consistent
with a BBB+
shadow credit
rating
Deliver above
WACC returns
Cost management
Stable dividends
NZ’s Infrastructure
Partner of Choice
Grow Through Supporting
the Energy Transition
More Sustainable Future
World-Class
Operator
High Performance
Culture
Grow from
the Core
Support Energy
Transition
Good Neighbour,
Good Citizen
Disciplined Capital
Management

•Input/offtake risk associated with fuels manufacture
•Fuel ownership
•Commodity/market risk
•Development and construction risk associated with
new fuel manufacturing facilities
•Above WACC returns
•Contracted revenue
•Precinct landlord
•Yield on appropriately valued land
•Tolling on utilisation of jetty, pipeline and any new
infrastructure
•Construction and contracting of associated
infrastructure/storage
•Ancillary services (blending, fuel quality testing)
•Operating and maintenance services
Our role in the Marsden Point Energy Precinct
X
Building diversified, fixed revenue that is independent of fuel volume throughput

Australian refinery sites are being repurposed as Energy Hubs
Kwinana Energy HubGeelong Energy Hub
Source: Viva November 2021 Community Meeting
Source: BP website

47%
50%
52%
50%
49%
51%
47%
46%46%46%
46%
0
20
40
60
80
100
120
140
20222023202420252026202720282029203020312032
Private / additional storageTerminal revenue - fixedTerminal revenue - variableRental from WiriInflation of 0% to 2.5%Take or pay threshold
~50% of Channel’s current revenue is fixed and independent of fuel volume throughput. Energy Precinct
Concept focused on building additional long-term revenue generation that is independent of fuel volume
Contracted Revenue Outlook $M
1

1.Revenue is in 2024 terms. Outlook uses Envisory base case (September 2024) assumptions and is subject to change based on actual fuels throughput volume
Contracted
Fixed
Revenue
Fixed revenue %
of total revenue

World-Class
Operator
To provide resilient infrastructure and unlock growth
opportunities
JACK STEWART, GM OPERATIONS

Pathway to world-class operator
Pathway to world-class underpinned by a comprehensive programme of work
Infrastructure
and Performance
Systems
and Processes
People and
Capabilities
Step-wise targets and plan
based on three-year
horizon
•Annual stretch targets set
through 29 performance
KPI’s
•Annual improvement plan
across nine workstreams
Target outcomes set both:
Quantitively
Target performance KPI’s across
seven key elements of terminal
operation
Qualitatively
Assessment against 28
characteristics of best-in-class
operations
To provide alicence to operate and unlock growth opportunities beyond Marsden Point
ANNUAL TARGETS
WORLD-CLASS FULL POTENTIAL

Infrastructure and performance
Significant investment in assets and
capabilities for long-term infrastructure
reliability and resilience:
•Investment in world-class fire fighting
equipment and bund upgrades ~$90
million
2
•Rigorous product quality controls for 3.5
billion litres of fuel annually with
ongoing investment in product quality
improvements such as floating suction
hoses
100%
1
Tank and Jetty
availability
99.6%
1
Pipeline availability
1.For the six months ended 30 June 2024
2.Total estimate for program of work
Ongoing investment driving operational performance

Systems and processes
Refreshed safety engagement program
Focus on reporting and continuous
improvement
Strong lead-indicator performance
Supply chain efficiencies for customers,
such as reducing ship alongside time, are a
key focus
Customer satisfaction survey showing
improvement in overall satisfaction
Nil
1
Process safety
incidents
Zero
1
Loss Time Injury
Frequency
1.For the six months ended 30 June 2024
Continued focus on operational discipline

People and capabilities
Employee engagement is a measure of the
investment of our people in the company’s
strategy and direction
Specific skills and knowledge have been
recruited into the business in line with
strategy announced last year
Apprenticeship program has been
implemented to improve depth and
resilience for key roles
+26
Percentage point lift
in employee
engagement since
conversion to import
terminal in April 2022
Significant lift in employee engagement since import terminal
conversion

Asset upgrades
Conversion project 85% complete with bunding upgrade program remaining through to 2027
Petrol tank farm firefighting manifold
Crude oil to jet fuel tank conversion – new geodesic roof
World-class bund upgrade

Fuel Demand
Outlook
PETER VAN CINGEL, BUSINESS DEVELOPMENT MANAGER

0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
2025
2026
2027
20282029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
20482049
2050
2060
Envisory - Jet FuelEnvisory - Diesel
Envisory - PetrolEnvisory "slower transition" case
Envisory "faster transition" caseEnvisory Outlook (Feb 2023)
Updated Envisory long-term fuel outlook
•Envisory long-term fuel outlook has been updated (prior outlook
February 2023):
•forecast stronger Marsden Point throughput to 2047
•forecasted volumes have increased by ~2.5 billion litres over
2024 – 2050 forecast period
•equates to an additional 140 million litres per year over the
next 10 years
1
•Channel’s deep draught fuel jetties and large onshore fuel storage
capacity allow customers to optimise their supply chain via large
import parcels
•Marsden Point is delivering a greater share of New Zealand’s land
transport fuel demand (0.4 – 1%) as customers optimise their supply
chains and bring in larger vessels
•Aviation fuel growth forecast to continue out to 2060 with continued
demand for diesel and petrol expected to 2060 and beyond for
some use cases
•Current expectation is that in the long-term a substantial portion of
delivered Jet fuel will be Sustainable Aviation Fuel (SAF)
•Envisory’s near term forecast (FY25/26) may be impacted by the
current economic environment and jet aircraft availability issues
Marsden Point Throughput (Million Litres) Outlook
2
1.For the period 2025 – 2034
2.Source: Envisory

Updated Envisory petrol and diesel outlook
Petrol
Envisory forecast higher overall with slower transition anticipated
•Permanent loss of vehicle kilometres travelled post-Covid
•Current economic downturn has slowed acquisition of new vehicles
slowing the expected rate of fleet fuel efficiency improvement
•Battery electric vehicle (BEV) uptake has slowed dramatically with
the removal of incentives and impost of road user charges. Envisory
continues to assume BEVs are cost competitive with internal
combustion engine vehicles across 2025-2030
•Envisory do not expect a material impact from biofuels (ethanol)
Diesel
Envisory forecast higher overall with slower transition anticipated
•Lower economic activity has seen weaker diesel demand nationally
•Longer-term GDP assumed to be lower (1.5% per annum compared
with 2.0% previously)
•Lower vehicle kilometres travelled mitigated by slower fleet turnover
and consequent slowing of fuel efficiency improvements
•Availability and affordability of electric commercial vehicles
proceeding more slowly than anticipated
•Uptake of hydrogen/electric propulsion for heavy vehicles remains
uncertain. Envisory assume minimal impact until 2030s
•Envisory do not expect a material impact from biofuels
New Zealand Light Vehicle Fleet
1
1.Source: EV Market Stats 2024 (evdb.nz) ‘Electric’ refers to battery electric vehicles (BEV) only.
‘Hybrid’ includes plug-in hybrids
0k
5k
10k
15k
20k
25k
30k
35k
0k
500k
1,000k
1,500k
2,000k
2,500k
3,000k
3,500k
4,000k
4,500k
5,000k
2018201920202021202220232024
DieselPetrolHybridBEVBEV new vehicle registrations (RHS)

Updated Envisory jet outlook
Jet
•Envisory’s updated jet outlook continues to rely on passenger and
destination DKMA
1
projections for Auckland Airport
•Recently announced Auckland Airport growth plan and $1.4 billion
equity raise underline the airport’s confidence in the future of air
travel
•More rapid jet demand recovery seen post-Covid from global
excess capacity (spare planes) leading to seasonal long-haul New
Zealand routes (e.g. North America to New Zealand), albeit with
reduced passenger load-factors
•Domestic aviation remains below pre-Covid levels, affected by
economic environment and reduced business and government
travel (video-conferencing)
•No change in Envisory assumptions on electric/hydrogen
substitution of jet fuel with only limited impacts on volumes from
2040s. No change in assumptions on SAF demand particularly at
Auckland Airport with strong long-haul bias and SAF being the only
decarbonisation route for long-haul aviation
•Envisory does not quantify SAF volumes separately, as SAF is a drop-
in fuel utilising the same infrastructure - no impact on the fuel
volume through Channel’s facilities
•Improved data on jet fuel consumption by aircraft type for short-
long- and ultra-long-haul flights results in a slightly weaker long-
term growth rate assumption
Auckland Airport International Flight Movements
2

1.International consulting group, forecast developed in 2022
2.Source: Auckland Airport Monthly Traffic Update, Channel Infrastructure
0
1,000
2,000
3,000
4,000
5,000
6,000
0
20
40
60
80
100
120
140
160
Auckland Airport International Flights
Channel Infrastructure Jet Fuel Throughput (Million Litres)

Marsden Point
A unique and highly strategic site
PETER VAN CINGEL, BUSINESS DEVELOPMENT MANAGER

Geographic Location
Marsden Point has direct
access to the Auckland
market via Channel’s 170km
pipeline. The next nearest
alternate Auckland fuel
supply import terminal is
located at Port of Tauranga,
195km from Auckland by
road.
The fuels pipeline from Marsden
Point is the lowest-emission
supply route for transport to
Auckland, and does not
contribute to traffic congestion.
There is no pipeline between Port
of Tauranga and Auckland.

Key Site Attributes
Channel Infrastructure’s unique site is well positioned to
support New Zealand’s energy transition
✓180 hectares of highly strategic land
✓Heavy industrial zoning
✓Marsden Point Energy Precinct zoning overlay
✓Long-term industrial resource consents
✓220kV electricity grid connection at site boundary
✓Industrial scale water supply
✓Connection to natural gas network
✓Critical part of Auckland’s fuel supply chain
✓Sheltered, deep water harbour
✓Located close to proposed motorway extension and
rail spur

Land Zoning and
operating
consents
Large area of Heavy Industrial
zoning from Marsden Point to
Ruakaka town, much of which
is geologically challenging
with a peat substrate.
Channel’s Marsden Point site
does not have a peat
substrate and has a
permissive ‘Marsden Point
Energy Precinct’ zoning
overlay
Heavy Industrial Zoning
Marsden Point Energy Precinct
Source: Whangarei District Council

Land Zoning and Operating Consents
The Marsden Point site has bespoke zoning
and consenting enabling all activities
associated with the import, production,
refining and distribution of energy products
at Marsden Point.
Marsden Point Energy Precinct overlay
Whangārei District Plan has a dedicated Marsden Point Energy Precinct
overlay, which:
•enables the operation, maintenance and upgrading of the
Marsden Point refinery
•provides for a range of activities including the operation of
storage and fuel tanks, process plants, distribution of products,
and electricity generation plants and associated transmission
lines
•permits the construction and operation of structures related to
fuel production and refining and the import and distribution of
energy products
•applies to all of Channel’s land at Marsden Point.
Zoning
•Marsden Point Energy Precinct permits tall processing plant,
including structures, columns and a furnace stack
•Marsden Point Port zoning in the proposed Regional Plan, permitting
maintenance/replacement and limited addition/alteration of
existing jetty structures as a controlled activity
Resource Consents
•35-year resource consents granted in March 2021 allowing for the
controlled discharge of treated wastewater, controlled discharges
into the air, discharge of water to the ground, and to occupy the
coastal marine area with the jetty and structures.

Strategic Energy
Precinct Concept
ROB BUCHANAN, CHIEF EXECUTIVE OFFICER

Additional Storage Potential Opportunities
Incremental Jet storage
Incremental Diesel storage (Minimum
Stockholding Obligation)
Low-carbon / bio / renewable fuel storage
Other product storage
Highest and best use growth opportunities for unutilised land
Energy Security Potential Opportunities
Peaking electricity generation
Flow Battery
LNG import receipts
Green hydrogen and other product
import/export
Significant potential to support New Zealand’s energy transition
Future Fuels Manufacturing Potential
Opportunities
Sustainable Aviation Fuel manufacturing
Biofuels manufacturing
Other future fuels manufacturing

Benefits to Northland & New Zealand
Development of the Marsden Point Energy Precinct will bring
significant benefits to regional New Zealand, and improve
New Zealand’s energy resilience

•Projects will require significant investment in regional New Zealand,
using local contractors and expertise where possible
•The creation of a large number of jobs for the project construction
phase as well as permanent highly-skilled, and well-paid jobs to
operate the various projects
•Retention of skilled contractor base in the regions
•Economic activity and growth in Northland
•New energy projects adjacent to Auckland will provide fuel and
energy security for New Zealand
•Lower-carbon and future fuels projects will help facilitate the
decarbonisation of New Zealand
•International inbound investment supporting New Zealand’s
economic growth
•Improved Balance of Payments through reduced imports and
increased domestic spend on labour, feedstocks, water and CO
2

Additional storage
Minimum Stockholding Obligation
•Government consulting on increasing Minimum Stockholding
Obligation from 21 to 28 days for diesel
•Additional 7 days equates to 70 million litres
•Channel well placed with 400 million litres of unutilised tank
capacity available for conversion
•Channel’s proximity and access to Auckland, New Zealand’s largest
fuel demand market, facilitates efficient turnover of fuel stocks to
uphold product quality
•Flexibility to reload onto vessel for coastal distribution
Supply chain efficiency
•More fuels storage capacity enables utilisation of larger vessels
Other product storage
•Channel well placed to support decarbonisation of the marine fleet
by providing low-carbon bunker fuel storage options
•Other product storage possible (e.g. bitumen, chemicals, etc)

1.WOSL: Wiri Oil Service Limited

e-Fuel Manufacture at Marsden Point
On-going study by Fortescue
•Project contemplates a 300MW ~60 million litre e-
Sustainable Aviation Fuel (e-SAF) production facility
•Utilises renewable electricity to produce green
hydrogen, which is combined with CO
2
to produce e-
Sustainable Aviation Fuel, a drop-in fuel for existing
aircraft and infrastructure
•Potential to expand the project in future
•Project currently in pre-feasibility phase
FEEDSTOCKPROCESS
Renewable
electricity
Water
(H
2
O)
CO
2
Hydrogen
production
Fischer
Tropsch
Other by-
products
e-SustainableAviation Fuel Production Process
Potential high-quality tenant with the opportunity to provide ancillary services
Refining
Channel’s potential roles
Landlord
Jetty
Fuels Storage
Ancillary services (blending, fuel quality testing)
Operations and Maintenance
e-SAF

Potential Marsden Point Biorefinery project
•Seadra Consortium (Seadra, Qantas, Renova Inc, Kent Plc
and ANZ)considering the development of a biorefinery on
Channel’s site
•Biofuels production has potential synergies with e-fuel
production
•Project contemplates the acquisitionand repurposing of
some of Channel’s decommissioned refinery equipment,
and addition of new equipment, a lease of 18 – 20 ha
sitegenerating c.$6-7m perannum,and fees from
provisionof additional infrastructure
•Seadra Consortium would be responsible for the build-own-
operation of the biorefinery plant, with Channel as landlord
and provider of agreed infrastructure and services
•Project remains subject to further engineering studies,
agreement on commercial terms and final form
agreements, completion of funding and final investment
decision by the Seadra Consortium and Channel
(expectedby 2H 2025)
•Fats, oils and greases
•Forest residue
•Sawmill residue
•Agricultural residues
•Municipal solid waste
Biofuels
TypicalbiofuelProduction Process
TYPICAL FEEDSTOCKS
Repurposing of some ex-refinery equipment to support lower-carbon fuel manufacturing
Channel’s potential roles
Landlord
Jetty
Fuels Storage
Ancillary services (blending, fuel quality testing)
Operations and Maintenance
Alcohol-to-jet
Fischer Tropsch
Hydro-processed
Esters and Fatty
Acids
TYPICAL PROCESSES

1.WOSL: Wiri Oil Service Limited

Potential for Energy Firming
Liquified Natural Gas (LNG)
•Domestic natural gas supply shortfall creates opportunity for LNG
import facility
•Marsden Point site well-suited, with sheltered deep-water harbour,
permissive zoning, and existing connection to natural gas network
•The gas pipeline from Henderson-Marsden Point has a narrower
gauge than the Taranaki pipeline, constraining throughput. This
could be mitigated by locating a gas peaker at Marsden Point
•Imported natural gas could supplement domestic production and
provide energy resilience for New Zealand.
•Channel’s role would be limited to the provision of infrastructure,
rather than any commodity / trading exposure. Accordingly, any
LNG facility at Marsden Point would require a long-term offtake to be
viable
Other Alternatives
•Diesel generation possibly a faster to build, lower capital cost
alternative to LNG-importfor firming inter-seasonal capacity while
the electricity system builds further capacity to enable transition to
100% renewables

Potential for Energy Storage
Flow battery
Long-term grid-scale electricity storage utilising liquid electrolyte
Leverages Channel’s competitive advantages:
•Existing 75 million litre tank
•220kV electricity grid connection at site boundary
•Potential green hydrogen source from e-SAF facility
•Potential 300MW demand from e-SAF facility
Other
•Import and export of other products such as hydrogen carrier
products including Methylcyclohexane (MCH) and ammonia
Picture provided by Elestor B.V.

1.WOSL: Wiri Oil Service Limited

Wrap up
ROB BUCHANAN, CHIEF EXECUTIVE OFFICER

1.WOSL: Wiri Oil Service Limited

Potential Land Value
1.High level rate per square metre estimates for ready to build, fully serviced industrial sites provided
by PwC Advisory Services
Significant value in the unutilised land provided the right tenants can be attracted
•Current book value of the unutilised land is ~$15m
•Value unlock achieved by earning a rental yield on a valuation that
appropriately recognises the unique site characteristics
•Potential Seadra biorefinery implies a land valuation of ~$550 per
square metre at a 6.5% capitalisation rate
•Further returns available for utilisation of ancillary services,
construction of related infrastructure and ancillary operations and
maintenance services
•Full strategic value will be unlocked over the longer-term with nearer
term projects including potential biofuel and e-SAF production
currently being actively pursued
Potential strategic land value
Seadra biorefinery
implies ~$550 per m
2
~$9 per m
2

Long-term and considered approach
The Energy Precinct contemplates a pathway to unlocking the value of our land
•Channel intends to take a long-term and considered approach to the development of the Energy Precinct
•Our objective is to ultimately unlock the value of our land by putting it to its highest and best use
•Not all opportunities, including those currently being considered today, will eventuate
•Channel is confident in the uniqueness of our real estate proposition, and that if a patient, long-term and
considered approach is taken, full value can be realised for shareholders over time
•The recently announced potential Seadra Consortium biorefinery project contemplates annual rental of c$6 – 7
million
1
, which implies a land value of ~$550 per square metre at a 6.5% capitalisation rate for the 18-20 hectare
parcel of land to be potentially occupied by the biorefinery
•Where Channel does not believe that a particular project ortenant reflects the premium that should be
attributed to the unique combination of attributes of the Marsden Point Energy Precinct, Channel will be
prepared to wait and/or consider other opportunities
1.Proposed rental before periodic adjustment

Long-term pathway to unlocking significant value over time as high-quality tenants are attracted to the
120 hectares of unutilised land and ancillary services Channel can provide
Energy Precinct could help underpin New Zealand’s energy and fuel security and resilience as well as
create significant economic value, both for Northland and New Zealand
This strategy will position Channel Infrastructure well to support the energy transition
Energy Precinct Concept focused on building additional long-term, diversified, contracted revenue that is
not dependent on fuel volume, with ~50% of Channel’s current revenue fixed and not dependent on fuel
volume throughput
Long-term fuel outlook update continues to support Channel’s business, underpinned by jet fuel demand
and a liquid fuel decarbonisation pathway for aviation, albeit the near-term may be impacted by
economic conditions and aircraft availability
An energy precinct for New Zealand