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October 02, 2025
Big new diesel power plant will help in energy crises, says Marsden Point chief
The day will come when the big oil tanks on the headland south of Whangārei will no longer contain petroleum; when the site’s owner will get out of fossil fuels entirely, says Channel Infrastructure chief executive Rob Buchanan. But that day is still decades away and so, this month, he expects to lock down plans [...]The post Big new diesel power plant will help in energy crises, says Marsden Point chief appeared first on Newsroom.
Marsden Point, New Zealand – While the long-term vision for the Marsden Point site involves a complete departure from fossil fuels, Channel Infrastructure chief executive Rob Buchanan has announced plans for a significant new diesel power plant to bolster New Zealand's energy security in the short to medium term. Buchanan envisions a future where the iconic oil tanks overlooking Whangārei no longer house petroleum products, signaling a complete transition to renewable energy sources. However, he emphasizes that this transformation is still decades away, necessitating strategic investments to address current energy vulnerabilities.
Buchanan anticipates finalizing plans for the diesel power plant this month. The move comes as New Zealand grapples with potential energy crises, particularly during peak demand periods and when renewable energy generation, such as hydro, is constrained by weather conditions. The new plant is intended to provide a reliable backup power source, ensuring a stable electricity supply for homes and businesses across the country.
The decision to invest in diesel power, even as the company aims for a fossil-fuel-free future, reflects the pragmatic approach Channel Infrastructure is taking to the energy transition. Buchanan acknowledges the urgency of climate change but also recognizes the immediate need for a secure and dependable energy supply. He believes the diesel plant will serve as a crucial bridge, providing stability while the country invests in and expands its renewable energy infrastructure.
The announcement has sparked debate among environmental groups and energy experts. Some critics argue that investing in fossil fuel infrastructure, even as a temporary measure, undermines New Zealand's commitment to reducing carbon emissions. Others acknowledge the necessity of ensuring energy security and see the diesel plant as a practical solution to prevent potential blackouts and energy shortages.
Channel Infrastructure maintains that the diesel plant will be operated efficiently and responsibly, minimizing its environmental impact. The company also emphasizes its commitment to exploring and investing in renewable energy technologies to accelerate the transition away from fossil fuels. The Marsden Point site, with its existing infrastructure and strategic location, is seen as a potential hub for future renewable energy projects, aligning with Buchanan's long-term vision for a sustainable energy future.
Buchanan anticipates finalizing plans for the diesel power plant this month. The move comes as New Zealand grapples with potential energy crises, particularly during peak demand periods and when renewable energy generation, such as hydro, is constrained by weather conditions. The new plant is intended to provide a reliable backup power source, ensuring a stable electricity supply for homes and businesses across the country.
The decision to invest in diesel power, even as the company aims for a fossil-fuel-free future, reflects the pragmatic approach Channel Infrastructure is taking to the energy transition. Buchanan acknowledges the urgency of climate change but also recognizes the immediate need for a secure and dependable energy supply. He believes the diesel plant will serve as a crucial bridge, providing stability while the country invests in and expands its renewable energy infrastructure.
The announcement has sparked debate among environmental groups and energy experts. Some critics argue that investing in fossil fuel infrastructure, even as a temporary measure, undermines New Zealand's commitment to reducing carbon emissions. Others acknowledge the necessity of ensuring energy security and see the diesel plant as a practical solution to prevent potential blackouts and energy shortages.
Channel Infrastructure maintains that the diesel plant will be operated efficiently and responsibly, minimizing its environmental impact. The company also emphasizes its commitment to exploring and investing in renewable energy technologies to accelerate the transition away from fossil fuels. The Marsden Point site, with its existing infrastructure and strategic location, is seen as a potential hub for future renewable energy projects, aligning with Buchanan's long-term vision for a sustainable energy future.
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