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Speaker 1: Twenty three past six on newstalk ZEDB before seven o'clock,

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Speaker 1: we will tell you about the government's new push to

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Speaker 1: get counsels to do more building inspections remotely but in

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Speaker 1: renewable fuels. News. Channel Infrastructure has announced a potential biorefinery

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Speaker 1: at Marsden Point. Jeremy Hutton from Milford Asset Management is

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Speaker 1: with usnawagaday. Jeremy, Hi, Jack, Yeah, talk to us about this.

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Speaker 2: Channel Infrastructure, which is now a fuel importer and a

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Speaker 2: fuel storage provider based at the old New Zealand refinery site,

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Speaker 2: announced this biorefinery project yesterday. So a consortium of international

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Speaker 2: companies are looking at developing this site and they're looking

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Speaker 2: to produce some sustainable aviation fuel for Australian airline contests.

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Speaker 2: There are a few others in the consortium, Renover and

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Speaker 2: Keen Energy. They're both experts and building renewable fuel projects

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Speaker 2: around the world, and an z is likely involved to

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Speaker 2: produce the finance as well. But effectively, what they're trying

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Speaker 2: to do is utilize some of the old decommissioned refinery

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Speaker 2: assets and produce sustainable aviation fuel, which is very exciting

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Speaker 2: and quite a good use of the old TETs. But

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Speaker 2: there are still a few unknowns like whether the biofuel

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Speaker 2: be used locally or concerts will want to ship it

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Speaker 2: back to Australia. But investors really like this announcement and

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Speaker 2: they sent the Sheare price up almost ten percent yesterday.

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Speaker 1: Yeah, that's amazing. So how does Channel bring in revenue

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Speaker 1: from this? How does the process actually work?

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Speaker 2: Yeah? So remember Channel is an infrastructure provider now only,

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Speaker 2: and the revenue it earns from this and other projects

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Speaker 2: are quite similar effectively renting out their storage units, companies

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Speaker 2: using their land for rents and the use of their

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Speaker 2: pipeline and their jetties as well. And this creates a

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Speaker 2: really steady and predictable revenue stream which certain investors will

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Speaker 2: really really like. But there is an upside for Channel

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Speaker 2: when this project displays it. They've got a lot of

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Speaker 2: land and a lot of that's consented, which, let's face it,

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Speaker 2: is very important these days. They've got the concent to

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Speaker 2: effectively expand more future energy and more future fuels on

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Speaker 2: the site and they're calling it the MARSS and Energy Precinct.

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Speaker 2: Now for the local communities, this is really good news

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Speaker 2: as well. There's potentially a lot of a lot more

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Speaker 2: local manufacturing and heavy industry's jobs returning and almost a

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Speaker 2: reindustrialization coming back to New Zealand with a linkage to

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Speaker 2: more sustainable fuels. Is it.

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Speaker 1: What's next to the project and the Channel infrastructure?

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Speaker 2: Yeah, I note that the project is still conditional, but

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Speaker 2: it's gone a long way, but they're still financing to

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Speaker 2: organize and they're aiming to push go on this construction

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Speaker 2: in the second half of next year. The Channel's also

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Speaker 2: got some further plans afoot. They've got an invest today

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Speaker 2: wind up later this month which will dealve into this

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Speaker 2: energy precinct a bit more. But from this news, I

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Speaker 2: think it's clear that international companies that are focused on

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Speaker 2: this area globally of renewable fuels are very attracted to

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Speaker 2: the Mars and Point site. You've got Ossi Energy, Giant,

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Speaker 2: Fortished View also looking hard. But with the quantests and

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Speaker 2: the sustainable aviation fuel projects, the future is potentially very

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Speaker 2: promising up here.

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Speaker 1: Any idea, Jeremy, when they might actually be producing this

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Speaker 1: sustainable fuel or this biofuel.

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Speaker 2: Yeah, hopefully pretty soon. They're doing a lot of testing,

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Speaker 2: still in a lot of internal work with this consortium,

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Speaker 2: but yeah, construction starting second half of next year, and

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Speaker 2: hopefully not too long after they're producing.

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Speaker 1: Yeah, no, very good. Hey, thanks, Jeremy, appreciate it. For

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