“This partnership marks an exciting time for our business, shareholder and stakeholders,” said Eastland Group chief executive Matt Todd.
“Eastland Generation and Obayashi are aligned in their values regarding environmental consciousness, relationship management, emissions targets, and dedication to sustainable energy in New Zealand, making this an excellent partnership.
“There is also strong strategic alignment, and we are now geared to accelerate our pipeline of projects, expand our operational capacity, and advance innovation within the renewable energy industry.”
“Obayashi is delighted to be partnering with Eastland Group through this investment in Eastland Generation, and we are excited about the potential for further growth in renewable energy in New Zealand,” said Dr Kenichi Ando, head of Obayashi Corporation’s Green Energy Division.
“We look forward to working closely with all stakeholders to deliver on Eastland Generation’s ambitions and to execute on the attractive green energy development opportunities ahead of us.”
The capital raise includes three geothermal generation assets in the central North Island, Te Ahi o Maui (26MW), Geothermal Developments Ltd (9MW), and TOPP1 (24MW), as well as a hydropower station (5MW) near Wairoa, and a soon-to-be operational utility-scale solar farm (5MW) in Gisborne.
Additionally, all of Eastland Generation’s pipeline of development projects, including the TOPP2 (49MW) geothermal project, the Taheke geothermal project and other renewable energy projects are included in the capital raise.
“Construction has commenced on TOPP2, the most advanced of our pipeline projects,” said Eastland Generation chief executive Alice Pettigrew.
This was a substantial expansion of Eastland Generation’s portfolio, “solidifying our position as a major player in the development, ownership and operation of renewable energy assets within the New Zealand market”.
“Together with Obayashi, we are excited that we will be able to achieve our goal of 100MW of renewable generation before our planned date of 2027, all the while making a substantial contribution towards moving our nation towards a 100 percent renewable electricity future.
“We look forward to working alongside the Obayashi team to maximise the future value of Eastland Generation and strengthen relationships with key stakeholders.”
Eastland Group’s sole shareholder Trust Tairāwhiti provided a short-term investment of $30 million to support the initial development of TOPP2, ahead of the capital raise.
Trust Tairāwhiti chair John Clarke said the strategic partnership with Obayashi was a great result with strong values alignment between the partners, and their investment would support Eastland Generation to accelerate its renewable energy projects.
“Having Obayashi on board as a 50 percent shareholder enables the company to continue to grow to the benefit of the trust and the region. The $30 million initially invested into TOPP2 will be repaid with a good return, enabling the trust to again better diversify its portfolio and continue to support our local communities and beneficiaries.”
Forsyth Barr acted as Eastland Group’s financial adviser in respect of this transaction.
Eastland Group said OIO approval was expected in coming months.
