A decision by the Marlborough Lines Ltd board not to approve equity funding for the proposed Mt Cass Wind Farm in Canterbury has left the project having to explore future options.
However, the wind farm continues to receive strong support from its other shareholder, MainPower, as well as from one of New Zealand’s reputable debt funding partners.
MainPower told the North Canterbury News it is unable to provide any more information on the project at this stage, "due to commercial sensitivities".
Energy Marlborough Ltd, a 50 per cent joint venture partner of the Mt Cass Wind Farm (MCWF), was unable to gain approval from its owner, Marlborough Lines Ltd, to fund the project.
Mt Cass Wind Farm chief executive Todd Voice said the entire team are disappointed the project has not been able to achieve financial close as anticipated.
"The wind farm would help meet the growing demand for renewable energy and support New Zealand to meet its decarbonisation goals.
"We have spent years working on the details, and it was a surprise when our partner couldn’t gain the necessary approvals for this important investment."
The project to build the South Island’s largest wind farm at Mt Cass near Waipara, north of Christchurch, is shovel-ready and was nearing financial close before the setback.
Mr Voice says the farm would generate up to 94.6MW of electricity - enough to power 40,000 homes and save around 100,000 tonnes of greenhouse CO2 emissions each year.
The MCWF Board is now investigating options for the future of the project, including finding a new equity partner or owner.
"There’s a lot to work through over the next few months as we explore options to deliver the wind farm.
"We appreciate there’s a lot of community interest and we will provide an update on the project’s future as we know more," Mr Voice says.
Key suppliers are also on board and have supported a review of options to find a suitable partner to progress the project.
