Latest / Best of Business / Jeremy Hutton: Milford Asset Management Equities Analyst on the biorefinery to be built at Marsden Point

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Jeremy Hutton: Milford Asset Management Equities Analyst on the biorefinery to be built at Marsden Point · Best of Business

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  Speaker 1: You're listening to a podcast from Newstalk SEDB. Follow this
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  Speaker 2: Twenty three past six on Newstalks EDB before seven o'clock,
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  Speaker 2: we will tell you about the government's new push to
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  Speaker 2: get councils to do more building inspections remotely, but in
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  Speaker 2: renewable fuels news. Channel Infrastructure has announced a potential biorefinery
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  Speaker 2: at Marsden Point. Jeremy Hutton from Milford Asset Management is
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  Speaker 2: with us now Goaday, Jeremy, Hi, Jack, Yeah, talk to
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  Speaker 2: us about this.
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  Speaker 3: Channel Infrastructure, which is now a fuel importer and fuel
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  Speaker 3: storage provider based at the old New Zealand refinery site,
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  Speaker 3: announced this biorefinery project yesterday. So a consortium of international
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  Speaker 3: companies are looking at developing the site and they're looking
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  Speaker 3: to produce some sustainable aviation fuel for Australian airline contests.
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  Speaker 3: There are a few others in the consortium Renover and
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  Speaker 3: Kent Energy. They're both experts and building a renewable fuel
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  Speaker 3: project around the world, and an z is likely involved
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  Speaker 3: to produce the finance as well. But effectively, what they're
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  Speaker 3: trying to do is utilize some of the old decommissioned
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  Speaker 3: refinery assets and produce sustainable aviation fuel, which is very
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  Speaker 3: exciting and quite a good use of the old tits.
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  Speaker 3: But there are still a few unknowns like whether the
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  Speaker 3: biofuel be used locally or if Concerts will want to
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  Speaker 3: ship it back to Australia. But investors really like this
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  Speaker 3: announcement and they sent the share price up almost ten
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  Speaker 3: percent yesterday.
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  Speaker 2: Yeah, it's amazing. So how does Channel bring in revenue
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  Speaker 2: from this? How does the process aft you work?
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  Speaker 3: Yeah? So remember Channel is an infrastructure provider now only,
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  Speaker 3: and the revenue it earns from this and other projects
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  Speaker 3: are quite similar, effectively renting out their storage units, companies
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  Speaker 3: using their land for rents and the use of their
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  Speaker 3: pipeline and their jettyes as well. And this creates a
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  Speaker 3: really steady and predictable revenue stream which certain investors will
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  Speaker 3: really really like. But there is an upside the Channel
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  Speaker 3: and this project displays it. They've got a lot of
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  Speaker 3: land and a lot of that's consented, which, let's face it,
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  Speaker 3: is very important these days. They've got the consent to
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  Speaker 3: evictively expand more future energy and more future fuels on
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  Speaker 3: the site and they're calling it the marss And Energy Precinct.
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  Speaker 3: Now for the local communities, this is really good news
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  Speaker 3: as well. There's potentially a lot more local manufacturing and
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  Speaker 3: heavy industry's jobs returning and almost a re industrialization coming
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  Speaker 3: back to New Zealand with a linkage to more sustainable
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  Speaker 3: fuels as it.
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  Speaker 2: What's next to the project and the Channel infrastructure.
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  Speaker 3: Yeah, I note that the project is still conditional, but
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  Speaker 3: it's gone a long way, but they're still financing to
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  Speaker 3: organize and they're aiming to push go on this construction
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  Speaker 3: in the second half of next year. The Channel's also
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  Speaker 3: got some further plans afoot. They've got to an invest
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  Speaker 3: today lined up later this month which will dealve into
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  Speaker 3: this energy precinct a bit more. But from this news,
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  Speaker 3: I think it's clear that international companies that are focused
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  Speaker 3: on this area global of renewable fuels are very attracted
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  Speaker 3: to the Mars And Point site. You've got Ossie Energy
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  Speaker 3: giants fortressed. You also looking hard. But with the quantists
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  Speaker 3: and the sustainable aviation fuel projects, the future is potentially
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  Speaker 3: very promising up here.
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  Speaker 2: Any idea, Jeremy, when they might actually be producing this
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  Speaker 2: sustainable fuel or this biofuel.
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  Speaker 3: Yeah, hopefully pretty soon. They're doing a lot of testing
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  Speaker 3: still and a lot of internal work with this consortium,
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  Speaker 3: but yeah, construction starting second half of next year, and
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  Speaker 3: hopefully not too long after that they're producing.
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  Speaker 2: Yeah. No, very good. Hey, thanks, Jeremy, appreciate it.
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