Seadra had initially signed a deal to buy decommissioned hydrocracking assets from Channel for US$33.88 million last year, with the intention of shifting them offshore.
But Channel said after Seadra investigated the complexity of moving the assets offshore, it felt leaving them at Marsden Pt and using them for a biorefinery would work better.
Should the project go ahead, it would use some of Channel’s decommissioned refinery assets, existing tanks, jetties and other infrastructure, and 18-20ha.
Under the new agreement, Channel would still sell the hydrocracking assets to Seadra for US$33.88m but keep it in New Zealand. It would also sell additional decommissioned refinery assets for US$23m and receive rental income of NZ$6-7m annually.
“Attracting another potential international future fuels project to Marsden Pt is further validation of the unique nature of our strategic site,” Channel chief executive Rob Buchanan said.
“While there can be no guarantee that these projects will ultimately proceed, the fact that we have been able to attract two potential projects of this calibre is testament to the attractiveness of our Marsden Pt site for the production of lower-carbon fuels and the inherent value of our land,” he said.
Channel said it has given itself until the second half of next year to work through arrangements, with no date on when the new biorefinery would become operational.
