Eastland Group sells 50% stake in generation unit to Obayashi Corp

The capital raise included three geothermal projects, amongst others.

New Zealand-based renewable energy developer Eastland Group has raised capital of around $302m (NZ$500m) through the selling of a 50% stake in Eastland Generation to Japanese engineering firm Obayashi Corporation.

In a statement, Eastland Group said the capital raise, conducted through a competitive process, covers three geothermal generation assets which are the 26 megawatts (MW) Te Ahi o Maui, 9 MW Geothermal Developments Lts, and the 24 MW TOPP1. 

This will also include the 5 MW hydropower station news Wairoa, and the 5 MW solar farm in Gisborn that will come online soon.

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Eastland Generations’ projects pipeline are also covered by the capital raise which includes the 49 MW TOPP2 geothermal project and the Taheke geothermal project.

“Eastland Generation and Obayashi are aligned in their values regarding environmental consciousness, relationship management, emissions targets, and dedication to sustainable energy in New Zealand, making this an excellent partnership,” said Eastland Group CEO Matt Todd.

“There is also strong strategic alignment, and we are now geared to accelerate our pipeline of projects, expand our operational capacity, and advance innovation within the renewable energy industry,” Todd added.

Eastland Group said the partnership will also boost its goal of 100 MW of renewable generation before the 2027 target.

$1 = NZ$1.65