Update on work towards potential Marsden Point biorefinery

NZX RELEASE
Update on work towards potential biorefinery at Marsden
Point
14 July 2025

In October 2024, Channel Infrastructure NZ Limited (Channel or Channel Infrastructure) (NZX: CHI)
announced it had entered into a conditional project development agreement with Seadra Energy, in
relation to the proposed development of a biorefinery at Marsden Point. Seadra Energy is partnering with
consortium members Qantas, Renova Inc, Kent Plc, and ANZ. The Seadra consortium has completed its
initial Front End Engineering and Design (FEED) study, and has now moved to the next phase of its
project development work. The consortium’s work is now focused on completing the plant configuration
for the Marsden Point site and updating the FEED study, commercial contracts with suppliers (including
Engineering, Procurement and Construction contractor) and customers, confirming consenting
requirements for site lease with Channel, plant build and operation of the biorefinery, and completion of
financing arrangements, with the complexity of completing these workstreams meaning a final investment
decision is now expected in 2026.
Channel Infrastructure Chief Executive, Rob Buchanan, said “Channel continues to work closely with
Seadra and its consortium partners on this complex, but very exciting project. Should the project go
ahead, this would represent a huge opportunity for Channel, Northland, and New Zealand, restoring fuel
manufacturing at Marsden Point, and bringing a huge number of highly skilled jobs and investment into
the region. It would also support fuel security for New Zealand, by establishing domestic manufacturing
for biofuels and other products from domestically-sourced feedstock. We will provide further updates to
the market as our work with the Seadra consortium continues.”
Should the biorefinery proceed, a substantial proportion of the proceeds from the sale of the
decommissioned assets is likely to be reinvested by Channel in early demolition (already provisioned in
the balance sheet), and growth capital expenditure associated with the construction of infrastructure and
storage assets to the biorefinery, for above WACC returns with long-term contracted revenues.
Channel Infrastructure Chief Executive, Rob Buchanan, added: “Future fuels projects are highly complex
and take time, but could provide significant fuel security benefits through manufacturing fuel from
domestic feedstocks, in addition to aiding the long-term pathway for decarbonisation of aviation and
heavy transport which remains reliant on emerging future fuels technologies. The unique combination of
features and attributes of our Marsden Point site, which are unparalleled at any other industrial site in
New Zealand, means Channel is well positioned to support both increased fuel security and New
Zealand’s energy transition. Alongside future fuels manufacturing opportunities, Channel continues to be
focused on other growth opportunities involving additional storage, progressing work on a proposed
diesel-fueled electricity peaker and pursuing the acquisition of fuel terminal assets outside Marsden
Point.”

- ENDS -

Authorised by

Chris Bougen
General Counsel and Company Secretary


Contact details

Investor Relations contact:
Anna Bonney
investorrelations@channelnz.com

Media contact:
Laura Malcolm
communications@channelnz.com

About Channel Infrastructure

Channel Infrastructure is New Zealand’s largest fuel import terminal business, 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