Company behind controversial waste-to-energy plant loses land near Glenavy

Tuesday, 11 February 2025

A computer concept, from a resource consent application, of the proposed waste-to-energy plant, near Glenavy, in South Canterbury.

The company behind a highly-controversial proposal to build a waste-to-energy plant in the Waimate District no longer has the land.

South Island Resource Recovery Limited (SIRRL) announced its plan to build a $350 million waste-to-energy plant, named Project Kea, in 2021.

The following year the company confirmed the purchase of a 15-hectare piece of land near Glenavy from Murphy Farms Limited for the proposed plant, and in May last year the Overseas Investment Office confirmed it had granted consent for that purchase.

However, SIRRL director Paul Taylor said the sales and purchase agreement to purchase land from Murphy Farms, near Glenavy, lapsed at the end of last year.

The company gave no indication of where the plant may be located now it had lost the land.

“We will continue to focus on lodging our application with the Fast Track panel and they will assess our application and judge it on its merits,” Taylor said.

The proposed location of SIRRL’s Project Kea plant north of Glenavy.

Bruce Murphy, of Murphy Farms Ltd, said the company had not renewed the sales and purchased agreement with SIRRL.

“Due to the delays resulting from changes made to the consenting process through the introduction of the Fast Track Approvals Act, the project is not meeting Murphy Farms’ future plans for growth.

“As a result, we have not renewed the sales and purchase agreement with SIRRL.”

SIRRL director Paul Taylor says the company will continue to focus on lodging its application with the Fast Track panel.

SIRRL is a joint venture between China Tianying Incorporated, which owns 60%, and a New Zealand company, Renew Energy Ltd, with 40%.

At the time of approving the purchase of the land, the decision released by Land Information New Zealand said: “The main benefits to New Zealand include increased jobs, significant capital expenditure, the introduction of new technology and business skills and energy production.”

The decision stated the consent was granted as the applicant met the investor test and the investment was likely to result in benefit to New Zealand.

“The minister of finance has decided that the investment is not contrary to New Zealand’s national interest.”

Groups opposed to the proposal, Why Waste Waimate and Waimate Doctors, expressed their disappointment at the OIO decision at the time.

In August 2023, the company’s resource consent applications were called in by then Environment Minister David Parker, at the request of the Waimate District Council and Environment Canterbury, so they could be managed by the Environmental Protection Authority (EPA), with the final decision on the project to be made by the Environment Court.

In October 2024, when the Government released a list of 149 projects to be fast tracked, Project Kea was listed. The bill is designed to speed up resource consents and get big projects built.

Applications for the fast track process opened on Friday.