Obayashi Corporation

05/09/2024 | Press release | Distributed by Public on 05/08/2024 19:01

Obayashi granted OIO for 50% shares in Eastland Generation

Obayashi granted OIO for 50% shares in Eastland Generation

Heading for Establishing a Value Chain for Green Energy Business

May 9, 2024

Company Profile

OBAYASHI CORPORATION (Obayashi) marks a significant milestone with the successful acquisition of a 50% stake in Eastland Generation, a New Zealand-based renewable energy power generation company, from its parent company, Eastland Group.

This strategic move, facilitated through Obayashi's local entity, Obayashi Clean Energy New Zealand Limited, solidifies Eastland Generation's position as an affiliate of Obayashi Corporation following the recent approval from the Overseas Investment Office (OIO) of Land Information New Zealand.

Te Ahi O Maui, a geothermal power plant (TAOM) owned and operated by Eastland Generation in Kawerau, New Zealand (Rated power output: 26.2 MW)

Eastland Generation currently operates a 4.0MW hydroelectric power plant, a 5.2MW solar power plant, and three geothermal power plants of 59.2 MW in total bringing the total capacity to 68.4 MW.

Energy transition will see the demand for renewables in New Zealand continue to grow. Eastland Generation is proactively enhancing its capacity of renewable energy generation to more than 100 MW by 2027. They are currently in the process of constructing a 49MW geothermal power station in Kawerau, New Zealand, which is expected to be commissioned in late 2025. They are also in the process of developing and consenting additional renewable generation capacity.

To facilitate Eastland Generation's business development, Obayashi will share their knowledge, expertise, and networks which they have cultivated in Japan and overseas. Likewise for Eastland Generation, they will share their operational knowledge with Obayashi for their ongoing geothermal projects in Japan.

Together, the companies will aim to secure a sufficient amount of renewable energy to augment green hydrogen production, which is currently projected in New Zealand by Obayashi. Not only as a business operator but as an engineering, procurement, and construction contractor, Obayashi will take another step forward to accelerate the development of green energy businesses throughout Asia and Oceania.

With the initiatives taken to realize the "Obayashi Sustainability Vision 2050" - decarbonization, provision of valuable spaces and services, and co-creation of a sustainable supply chain, the company will continue its effort to achieve carbon neutrality on a global scale.

Overview of Eastland Generation

Company name Eastland Generation Limited
Establishment 2007
Address Gisborne, New Zealand
Business description Renewable energy power generation business in New Zealand.
Ownership and Management of geothermal, hydroelectric, and solar power plants.

Overview of Share Acquisition

OIO approval date March 18, 2024
Share acquisition date April 30, 2024
Share acquisition ratio 50.0%