CHI - FFI Green Hydrogen Scoping Study progresses to next phase

Wednesday 5th July 2023

Channel Infrastructure (CHI), New Zealand’s largest fuel import terminal business based at Marsden Point in Northland, has today announced that the scoping study for green hydrogen and synthetic Sustainable Aviation Fuel (e-SAF) production at Marsden Point is now progressing to the pre-feasibility stage.

Fortescue Future Industries (FFI) will now progress its study to the pre-feasibility phase, which will include more detailed engineering and design studies and developing further detail on the economic viability of the project, following a successful scoping study that assessed the overall viability of producing eSAF for the domestic market at Marsden Point.

The pre-feasibility study will investigate a 300MW, c.60 million litres per-year e-SAF production facility at Marsden Point, with the e-SAF to be distributed via the existing Marsden Point-to-Auckland Airport supply chain, as well as further analysis of the project’s benefits to New Zealand, including the potential provision of large-scale demand response, enabling electricity to be released to the grid when needed.

The pre-feasibility phase of the project is being supported by the government through EECA (the Energy Efficiency and Conservation Authority). Underpinning government support is the potential demand response benefits that the facility could provide to the electricity market and ultimately New Zealand businesses and households.

Commenting, Channel Infrastructure CEO, Rob Buchanan, said: “Throughout our transition, Channel Infrastructure’s priority has been to assess every opportunity to utilise the existing assets and infrastructure that we have at Marsden Point to support a stable and secure fuels supply chain. At the same time, we want to pursue opportunities that have the potential to contribute to New Zealand’s wider decarbonisation efforts and energy transition, and bring the potential for new jobs for Northlanders. During the next phase we will work with FFI on developing the commercial model for Channel, including how we leverage our strategic asset base, available land at Marsden Point and our pipeline to Auckland for this exciting project.”

FFI has signed a Memorandum of Understanding with Air New Zealand to further their mutual interest in investigating eSAF production and eventual use in New Zealand, with the initial focus being on Air New Zealand becoming the foundation customer for eSAF produced through the Marsden Point project once it becomes commercially available and economically viable. FFI has also entered into MOUs with Mercury, Manawa Energy, Yinson Renewables and Top Energy to support the provision of renewable electricity for the project.

- ENDS -

FFI Green Hydrogen Study - update

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