| Decision number |
200810009 |
| Application number |
200720074 |
| Date |
29 January 2008 |
| Offeror/applicant |
Contact Energy Limited |
| Ultimate applicant beneficial ownership |
59.0354 percent - Australia, Australian Public
20.59 percent - New Zealand, New Zealand Public
15.29 percent - Various, Various overseas persons
2.3369 percent - United States of America, United States Public
1.4894 percent - United Kingdom, United Kingdom Public
1.2583 percent - Various, Unknown Overseas Persons |
| Beneficial overseas ownership |
|
| - Asset current |
0 percent |
| - Asset proposed |
79.41 percent |
| - Share current |
N/A |
| - Share proposed |
N/A |
| Offeree(s)/seller(s) |
Landcorp Farming Limited of New Zealand |
| Business activities |
Electricity, Gas & Water Supply - Electricity & Gas Supply |
| Details of land involved |
153.28 hectares of freehold situated at Aratiatia Station, Tauhara District, Taupo being CT 298461 (South Auckland Registry). |
| Regions involved |
Waikato |
| Total consideration |
$4,017,704 |
| Consent sought |
To acquire an interest in land which, either alone or together with any associated land of that type, is or includes non-urban land and exceeds 5 hectares in area. |
| Rationale |
The application has been approved as it met the criteria.
The Overseas Investment Office is satisfied that the Applicant has significant business experience and acumen relevant to and is demonstrating financial commitment towards the investment. The Overseas Investment Office is further satisfied that the persons who exercise control over the Applicant are of good character and not the kind of persons referred to in section 7(1) of the Immigration Act 1987.
Background:
The Applicant already holds a registered encumbrance and easement over the land and proposes to acquire the land from Landcorp Farming Limited (Landcorp). The encumbrance and easement enables the Applicant to undertake its geothermal operations in the Tauhara area.
Outline of proposal:
The Applicant proposes to use the land to support and further develop its geothermal energy operations in the Tauhara area. The Applicant proposes to enter into a lease or licence with local farming interests to enable local farmers to use the land surface for grazing or other activities that are compatible with geothermal energy operations.
The Applicant has announced plans to invest up to $2 billion in renewable energy projects over the next five years. This investment includes the proposed construction of up to three new geothermal power stations in the Tauhara area. The relevant land will be used to support the geothermal energy operations of these power stations.
Rationale for investment:
If the investment proceeds, the land will comprise part of the Applicant's portfolio of geothermal power generation assets. The Applicant's geothermal energy-related interests cover approximately 8,000 hectares of land overlying the geothermal fields in the Wairakei/Taupo/Tauhara region. The Applicant holds the right to extract geothermal energy from the subsurface of the Tauhara geothermal field. The Applicant is also entitled to carry out activities on different areas of the land surface, for operational purposes associated with managing the geothermal resource. The Crown's original intentions regarding the use of the geothermal energy source in the land could not be given effect if Landcorp Farming sold the land to a third party who developed it for residential, industrial or commercial purposes. Use of land for these purposes is incompatible with its use for geothermal energy purposes.
The proposed investment is likely to result in the following benefits:
- the creation of job opportunities in the construction of the power stations;
- increased efficiency in the generation of geothermal energy; and
- additional investment for development purposes.
|
| Contact |
Susie Kilty
Buddle Findlay
P O Box 2694
WELLINGTON 6140 |
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