Plans for a new geothermal plant on the Big Island of Hawaii has been canned.
Eastland Group Ltd has pulled the plug on a potential $10 million investment in a project to build a geothermal power plant in Hawaii.
More than two years after the idea was first mooted, Eastland Group chief executive Matt Todd yesterday confirmed the company decided last month not to take the process any further…
…Eastland Group’s investment in building a 25MW plant on Hawaii’s Big Island would have been as a 20 percent partner, costing $5m-$10m, with Innovations Development Group (IDG) and the Office of Hawaiian Affairs.
Eastland Group had an investment option in the project through its relationship with Hawaii-based IDG in geothermal projects in eastern Bay of Plenty. In 2012, it wrote-off a $1.25m loan to IDG associated with this option.
Eastland Generation Ltd’s subsidiary company Eastland Hawaii Inc first made a bid to Hawaiian Electric Company (HELCO) to build the plant in 2013, with a decision expected to be made in September of that year.
Mr Todd said all costs associated with the work done in Hawaii were part of the company’s business development budget. Expenses, including the $1.25m loan to IDG, would not be recovered.
Eastland Group subsidiary Eastland Generation already runs a 8.5MW geothermal plant near Kawerau.
The decision to pull out of the Hawaii deal will not affect plans for a second power plant at Kawerau, or the company’s relationship with IDG, said Mr Todd.
Last year the company received consent for Eastland Generation’s Te Ahi O Maui geothermal project to go ahead, with plans to build a 15MW to 20MW plant.
Mr Todd said that project was still a partnership between Eastland Generation, Kawerau A8D Ahu Whenua Trust and IDG.
“Eastland Generation holds the majority interest in Te Ahi O Maui, with its partners each holding a minority position. The relationship hasn’t changed.
“The Te Ahi O Maui project is progressing as planned, with resource consents now in place for 15,000 tonnes a day of geothermal fluid for a 35-year period. The consents allow for the design and construction of a sustainable geothermal power plant on a site 2.3km north-east of Kawerau.”
Full story here Hawaii Plan Canned.