New Zealand-based renewable energy company Eastland Generation will be receiving $25 million in long-term lending from the New Zealand Green Investment Finance (NZGIF) to fund the construction of connection assets for the new ~50 MW TOPP2 geothermal plant. The funding will also enable upgrades to the existing connection of the 25-MW Te Ahi O Maui geothermal plant.
Eastland Generation is owned by Eastland Group, a specialist infrastructure company headquartered in Tairawhiti that also operates Eastland Port and Gisborne Airport. Having recently sold its electricity distribution business, Eastland Group is recycling capital into its significant generation pipeline.
“NZGIF’s tailor-made funding will support Eastland Generation and subsequently the energy resilience of the Eastern Bay of Plenty region, benefitting industry and farming in the region,” said Jason Patrick, NZGIF Chief Investment Officer.
“The loan represents an attractive opportunity to support a leading infrastructure operator and regional decarbonisation,” Patrick further commented.
“Partnering with NZGIF was a natural choice as they identified a specific opportunity and share our commitment to sustainable, enduring investments in renewable infrastructure, combined with a commercial approach to the transaction,” added Eastland Generation Chief Executive Officer Alice Pettigrew.
A little more than a month ago, Eastland Generation announced a strategic capital raise to help fund the expansion of its renewable generation portfolio. In the announcement, TOPP2 was identified as a priority project. The Eastland Group has set a goal of 100 MW of renewable generation capacity by 2027.
Back in 2021, the Eastland Group acquired the TOPP1 geothermal power plant in Kawerau adding to a portfolio that already included the 26-MW Te Ahi o Maui power plant and the 9-MW Geothermal Developments Ltd power plant.
