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Home / Rotorua Daily Post

Marsden Point closure shifts $70m glasshouse project from Northland to Waikato

By Monique Steele
RNZ·
2 Apr, 2025 09:57 PM3 mins to read

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The Government approved a $14m loan under the Provincial Growth Fund in 2020 towards building an 8.9ha glasshouse to grow organic specialty tomatoes. Photo / Pixabay
The Government approved a $14m loan under the Provincial Growth Fund in 2020 towards building an 8.9ha glasshouse to grow organic specialty tomatoes. Photo / Pixabay

The Government approved a $14m loan under the Provincial Growth Fund in 2020 towards building an 8.9ha glasshouse to grow organic specialty tomatoes. Photo / Pixabay

By Monique Steele of RNZ

Northland will likely miss out on a multimillion-dollar, government-backed growing operation – a domino effect following the closure of the Marsden Point refinery near Whangārei.

The $70 million glasshouse project was developed by Taupō-registered company Rohe Produce to be powered by carbon dioxide (CO2) at the sole oil refinery in New Zealand.

The Government approved a $14m loan under the Provincial Growth Fund in 2020 towards building the 8.9ha, light-emitting diode (LED) glasshouse to grow organic specialty tomatoes.

Then-Regional Economic Development Minister Shane Jones said it would be huge for Northland and create 110 permanent jobs.

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But five years later, the project stalled, the grant was put on hold and the developer was waiting for confirmation on the build’s new site.

Kānoa, the government’s Regional Economic Development and Investment Unit, was in touch with company director Greg Prendergast, a former T&G Global leader with about 40 years of experience in the industry.

Kānoa’s general manager of regions, Kay Read, said the oil refinery’s closure in 2022 meant it had to seek another power source.

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“The company’s location at Marsden Point was in part to be close to a CO2 supply used to grow the tomatoes, however, the closure of the Marsden Point Refinery in 2022 left it without a CO2 supply,” she said.

Read said construction was expected to begin immediately once the new supply was confirmed – likely now to be in Waikato.

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“The company will move the location for construction of its high-tech glasshouse to the Waikato to be close to a potential supply of CO2.”

She confirmed no funding had yet been awarded.

“No PGF funding has been drawn down, noting funding is only drawn down on the completion of agreed contracted milestones.”

Director Greg Prendergast told RNZ in 2020 that the glasshouse would be sustainable with water recycling, clean energy sources, and use good bugs to manage pests naturally on the organic crop.

Discover more

  • Far North and Kaipara water projects get more Government funding to expand
  • First look: Inside Northland oil refinery post-shutdown
  • Cheap tomatoes great for shoppers - not for growers
  • Tomato growers face skyrocketing energy costs, labour shortages

The build was expected to be the first of its kind in New Zealand to use 100% LED lights that would increase tomato yields by 50% per square metre and also ease the price spike during winter months.

Requests to speak with Prendergast have been made by RNZ to Kānoa, but his LinkedIn page said he was managing a glasshouse for large Australian fresh produce supplier Oakville Produce, formerly Moraitis Group, in Victoria.

A decision on supplying CO2 was expected in a few months.

– RNZ

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