Eastland Generation owns and operates three geothermal power plants on the Kawerau geothermal field in the Bay of Plenty. This includes Te Ahi o Maui (26MW), Geothermal Developments Ltd (9MW) and TOPP1 (24MW).
This is in addition to a hydropower station (5MW) near Wairoa and a soon-to-be operational utility-scale solar farm (5MW) on land adjacent to Gisborne Airport.
Eastland Generation also has a significant pipeline of renewable energy projects. In the near term, one of its key projects is the partnership with Ormat Technologies to build the 49MW geothermal power station, TOPP2.
“A key driver of the capital raise is to use the funds, in part, for the development of TOPP2, a 49MW geothermal power station in Kawerau. This plant is twice the size of TOPP1 and Te Ahi o Maui,” Mr Todd said.
“Similar to the TOPP1 agreement, we will purchase geothermal fuel from NTGA (Ngāti Tūwharetoa Geothermal Assets) over the life of the power station.
“We have signed an agreement with Ormat Technologies, a leading global provider of renewable energy solutions, to build and operate the power plant, with an option for Eastland Generation to purchase it.
“The development of TOPP2 has been in the pipeline since signing the agreement for TOPP1 in 2021. Over the last two years, we’ve been working with our key suppliers to progress the development, undertake site investigations, preliminary design work and lodge resource consent applications.
“We’re excited about the project and operational synergies it will bring across our three existing geothermal plants.
“TOPP2 is the most advanced of our projects and will add significant scale to our portfolio, reinforcing our position as a significant developer, owner and operator of renewable energy in the New Zealand market.
“It will also enable us to exceed our goal of 100MW of renewable generation by 2027, while also significantly contributing to the Government’s target of 100 percent renewable electricity by 2035.
“There are numerous other projects at various stages of development building long-term regional energy capacity and resilience, which will be announced in the near future.”
Eastland Group’s sole shareholder Trust Tairāwhiti will provide a short-term investment of $30m to support the initial development of TOPP2.
“This project takes advantage of the expertise in renewable energy developed within Eastland Generation, and builds on existing relationships with landowners and industry stakeholders,” Trust Tairāwhiti chair John Clarke said.
“Bringing another shareholder into the generation business will provide additional capital to allow Eastland Generation to grow, without the trust being required to provide additional long-term equity investment.
“The short-term investment of $30m will not prevent the trust from making other community and economic investments in Tairāwhiti. Ultimately, it will provide a solid return on investment and capital release back to the trust so we can provide more for beneficiaries over the long-term.”
Forsyth Barr has been appointed as the adviser to run the capital raise process, which is expected to begin shortly.
