NZ's Eastland Generation gets Japanese investment for geothermal growth

New Zealand’s Eastland Group on Monday said it has successfully raised capital for Eastland Generation’s renewable project pipeline by selling half of the business to Japanese construction and engineering company Obayashi Corp (TYO:1802)

Eastland Group, which is owned by Trust Tairawhiti, a regional development trust, selected the Japanese company after a competitive process.

The deal gives Eastland Generation an enterprise valuation of over NZD 500 million (USD 294m/EUR 276m). It encompasses three geothermal generation stations in the central North Island totalling 56 MW, a 5-MW hydropower station, and a 5-MW solar farm that is soon to come online. The transaction further covers Eastland Generation’s development pipeline, including the 49-MW TOPP2 geothermal project, which has started construction. Trust Tairawhiti made a NZD-30-million short-term investment to back TOPP2’s initial development ahead of the capital raise.

Eastland Generation chief executive Alice Pettigrew said that together with Obayashi, the company will be able to achieve its goal of 100 MW of renewable generation before its planned date of 2027.

Obayashi has been present in New Zealand since 2011, with its experience there including delivery of New Zealand’s first megawatt-class green hydrogen production facility, called Halcyon Power.

The deal needs approval from the Overseas Investment Office (OIO) which is expected in the following months.

(NZD 1 = USD 0.588/EUR 0.551)

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