A company majority-owned by Chinese interests has won consent to buy farmland for a controversial scheme to convert rubbish into energy on Canterbury dairyland.
Toitū Te Whenua Land Information NZ released a decision from the Overseas Investment Office (OIO) showing two ministers granted the application for Project Kea, opposed by some Waimate residents due to fears for the environment and air pollution.
The investment sum was suppressed so people don’t know how much money is involved but two ministers agreed to the scheme, named Project Kea.
Land Information Minister Chris Penk and an associate finance minister approved the deal. Chris Bishop, David Seymour and Shane Jones are all associate finance ministers, but which one signed off on the land deal was not stated.
South Island Resource Recovery [60 per cent Chinese, 40 per cent New Zealand] has won consent to buy the land, the decision calling it a joint venture between China Tianying Inc and Renew Energy.
Who sold theland was not stated. The 14.8ha block is on Morvern Glenavy Rd.
“Subject to receiving the necessary resource consents, the applicant intends to construct and operate New Zealand’s first large-scale waste-to-energy plant on the land. The facility will convert municipal and construction solid waste into steam, water and electricity,” the decision said.
The main benefits to New Zealand are jobs, significant capital expenditure, the introduction of new technology and business skills and energy production.
Consent was granted because South Island Resource Recovery met the investor test and the investment is likely to result in benefit to New Zealand, the decision said.
The land deal needed OIO consent because it was classified as sensitive, and significant business assets were involved. These are usually over $100 million, although that part of the decision was not explained.
South Island Resource Recovery said the plant would generate energy from 365,000 tonnes of rubbish annually.
If it goes ahead, it will be the first plant of its kind in the country.
The consents were first filed to Canterbury Regional Council and Waimate District Council in September 2022.
Last year, the Environmental Protection Authority said [now former] Minister for the Environment David Parker had asked it for advice on whether the application was of national significance, and if so, whether it should be referred to a board of inquiry or to the Environment Court.
The Waimate District Council and Canterbury Regional Council asked Parker to “call in” the project because of how unique it was.
Parker agreed the application was of national significance and directed the Environmental Protection Authority to take over the consent process.
Project Kea said about 300 people would work on the construction of the plant, which would emit no smell.
Once finished, about 100 jobs would be created from the plant.
The hopper that holds the waste material for disposal would be well-contained in the negative pressure heart of the building, the business said.
“Using world-leading best available technology and the most stringent environmental management practices, the facility will produce a significant amount of renewable energy to be provided as steam and electricity for local industry and communities in the region,” Project Kea says.
Residents, including a doctor, have raised concerns about potential discharges from the waste incinerator at the planned plant.
Chinese investors have long had an interest in the wider area with dairy giant Yili establishing a dairy processing factory at Glenavy.
Anne Gibson has been the Herald’s property editor for 24 years, has written books and covered property extensively here and overseas.