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The previous Marsden Point refinery.
Image: LDR/ Northern Advocate/ Michael Cunningham
The days of making fuel at the website of the previous Marsden Point refinery might not yet be over.
The taps were shut off at the refinery in early 2022 as Refining NZ stopped processing petroleum due to the fact that of weak margins and the downturn in need due to the fact that of Covid-19 limitations, with the significant oil business deciding to import processed fuel mostly from South East Asian refineries.
Ever since the old refinery has actually been taken apart, numerous personnel made redundant, and it is now simply a fuel import and storage center, with a supply pipeline to Auckland.
It likewise has a big commercial website looking for an usage other than storage tanks.
President Rob Buchanan stated reconstructing a refinery at the website– which is to be examined under the union offer in between National and New Zealand First– would cost billions, the previous labor force had actually carried on, and the concept was not practical.
He stated that did not rule out fuel production all together.
“We’ve got a memorandum of comprehending with [Australian based] Fortescue for a prospective sustainable air travel fuel (SAF) factory on our website. that would be for 50 million litres of fuel a year which would be a genuine chance to restore making on the website.”
Strong cravings for green fuel
He stated airline companies worldwide wanted to have a “strong cravings” for sustainable air travel fuel as a method to decrease carbon emissions, and Marsden Point was a “distinct” website.
Last month Air New Zealand signed an offer with a Finnish company for 9 million litres of SAF to be saved in Los Angeles for usage on the airline company’s services.
Buchanan stated the business was likewise taking a look at other alternatives for fuel production at the old refinery website.
“Our future remains in energy facilities, which’s where we’re focussed as a business.”
He stated Channel Infrastructure was open to establishing storage centers somewhere else around the nation, however no chances had actually emerged up until now, and previous prepare for a solar farm close by have actually been sidelined.
Buchanan stated the business had capability for 280m litres of fuel at present, however might bring an additional 400m capability into operation if required.
Necessary fuel reserve requirements entering force next January need fuel importers to have at least 28 days’ supply of gas, 24 days of jet fuel and 21 days of diesel.