Eastland Generation taps NZGIF for Kawerau geothermal plant funding

Eastland Generation's Te Ahi O Maui geothermal plant, near Kawerau.

Government-owned New Zealand Green Investment Finance (NZGIF) said it will lend Eastland Generation up to $25 million to build connection assets for its new 50 megawatt (MW) TOPP2 geothermal plant at Kawerau.

The funds will also enable upgrades to the existing connection of the 25MW Te Ahi O Maui geothermal plant nearby, NZGIF said.

In July, Eastland Generation said it had hired brokers Forsyth Barr to advise on a capital raising to help fund the expansion of its renewable energy portfolio, through the sale of a 50 per cent stake. A spokesperson for Eastland said the sale process is under way.

NZGIF chief investment officer Jason Patrick said the Eastland loan represented an attractive opportunity to support a leading infrastructure operator and regional de-carbonisation.

“NZGIF’s tailor-made funding will support Eastland Generation and subsequently the energy resilience of the Eastern Bay of Plenty region, benefitting industry and farming in the region,” Patrick said.

Eastland Generation is owned by Eastland Group, a specialist infrastructure company headquartered in Tairāwhiti.

Eastland Group, which also operates Eastland Port and Gisborne Airport, is solely owned by Trust Tairāwhiti, a community trust.

NZGIF, a “green” investment bank, was established in 2019 to facilitate and accelerate investment that can help to reduce greenhouse gas emissions in New Zealand.

Last November, Taranaki-based Firstgas bought lines company Eastland Network for $260m from Eastland Group.

Firstgas is owned by Australian-based Igneo Infrastructure Partners.

Jamie Gray is an Auckland-based journalist, covering the financial markets and the primary sector. He joined the Herald in 2011.