Todd takes 30pc stake in tidal project

The renewable electricity sector has got a big boost from Todd Energy's announcement it is taking a 30 per cent stake in a tidal generation project in the Kaipara Harbour. Crest Energy hopes to have the $600 million project fully operational within nine years.

Todd has the option of moving to a 45 per cent stake in the project. Its generation development manager Tim Cosgrove said it was too early to work out the exact price of the project and how costs would be distributed, but "it's fair to assume that Todd will be bearing a fair bit of that".

Crest wants to eventually sink 200 turbines to the bottom of the Kaipara's main channel to generate 200MW of power, enough to supply 250,000 homes. While there was an element of risk Todd believed the time was right to back it.

"You've got to back these sort of things. Some of these emerging renewables need this sort of support."

Tidal power could complement other generation in the company's portfolio. One of tidal power's main advantages was the huge number of suitable sites still available around the country, Cosgrove said.

Crest is awaiting an Environment Court ruling following four years of battling to get consent. Opponents are worried about the affect on the sea floor and marine life including snapper spawning grounds.

The Kaipara tidal project would be the first of its kind in New Zealand once commissioned.