Channel Infrastructure CEO Naomi James said the company is looking for a new power supply to its Marsden Pt site, which could include a massive solar farm. Photo / Tania Whyte
Channel Infrastructure CEO Naomi James said the company is looking for a new power supply to its Marsden Pt site, which could include a massive solar farm. Photo / Tania Whyte
Channel Infrastructure is calling for proposals to supply power to its Marsden Pt site, which could include developing a massive solar farm.
Channel Infrastructure, now a fuel infrastructure company after its predecessor Refining NZ stopped refining fuel, has released a request for information (RFI) seeking proposals for long-term electricity supply to its Marsden Pt site, which may involve the development of the Maranga Ra solar project.
The RFI is the first step in a process to be run by Channel Infrastructure to lower the significant cost of electricity to the business, at the same time as reducing carbon emissions through the development of new renewable electricity.
This could end up underwriting the development of Maranga Ra, which is a fully consented solar farm project, on land owned by Channel adjacent to the Marsden Pt fuel import terminal.
CEO Naomi James said electricity is a key operating cost for the business and makes up a quarter of its operating costs.
"That is why we are looking to secure long-term low-cost supply for our business preferably from renewable sources. New Zealand electricity costs are currently significantly higher than the cost of new renewable generation capacity, making new supply a more attractive option to reduce exposure to market volatility and network costs.
''Our Maranga Ra solar project provides a unique opportunity to establish new renewable capacity, at a significantly lower-cost than the market is currently delivering."
Maranga Ra is Channel Infrastructure's fully consented 35GWh/annum solar farm. The project was put on hold during the company's Strategic Review, and subsequent decision to reset operations and shut down the oil refinery.
Now that the refinery has been permanently closed, and imported refined fuel is flowing through the terminal, Channel Infrastructure is looking to secure its long-term electricity requirements, which may involve the development of the Maranga Ra solar project, James said.
An artist's impression of a proposed $39 million solar plant adjacent to Marsden Pt's Channel Infrastructure refinery. Image / Supplied
''New Zealand, and Northland in particular, has significant renewable energy potential, however the development of new renewable electricity capacity is facing two key barriers, being consenting and electricity infrastructure requirements.
"With resource consents already in place at Marsden Pt, and available transmission capacity, our Maranga Ra project can be developed much faster than most other solar projects being proposed. This RFI offers potential partners an exciting opportunity to work with us as we look to lock in secure, affordable, renewable, electricity supply for the long term for Marsden Pt."
Last week the Northern Advocate revealed that there's no going back to refining crude oil at Marsden Pt, with the Marsden Pt Oil Refinery site decommissioning project was more than 70 per cent complete, and the plant has effectively been dismantled internally. Only the shells and structures remain.
All cabling at the refinery has been cut at the ground, and heat exchanger bundles removed to be sent off site for recycling.
Calls for the refinery to be retained have come from many sectors, even before Refining NZ changed into Channel Infrastructure from April 1 and started importing refined fuel.
When it first proposed the solar farm then Refining NZ said a 31-hectare, $36-$39 million solar farm could provide up to 10 per cent of Marsden Pt Oil Refinery's annual $30m power take - with scope to expand the project further.
Storage tanks at Channel Infrastructure at Marsden Pt. Photo / Tania Whyte
It planned on constructing a 26 megawatt solar farm to be developed adjacent to the refinery to supply it with renewable electricity. The farm - which would be New Zealand's largest if built - then would have been funded via a combination of non-recourse project debt funding and equity of around $12-$15m from the company.
In comparison, Far North electricity company Top Energy operates a 25MW geothermal power station at Ngawha, just east of Kaikohe, and is building a second plant which is expected to produce 32MW.
