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Energy production could return to Marsden Point, with the operator of the fuel import terminal signing a conditional agreement to develop a biorefinery at the site.
Channel Infrastructure said the agreement with Seadra Energy and a consortium of partners, meant the proposed biorefinery could become an anchor tenant for the Marsden Point precinct, with Channel selling a number of former refinery assets and leasing out land.
The consortium included Qantas, Renova Inc, Kent Plc and ANZ.
A biorefinery typically converts biomass into biofuels, biochemicals and energy, similar to an oil refinery, but using renewable biological materials.
Seadra had initially signed a deal to buy decommissioned hydrocracking assets from Channel for US$33.88 million last year, with the intention of shifting them offshore.
But Channel said after Seadra investigated the complexity of moving the assets offshore, it felt leaving them at Marsden Point and using them for a biorefinery would work better.
Should the project go ahead, it would use some of Channel's decommissioned refinery assets, existing tanks, jetties and other infrastructure, and 18-20 hectares of land.
Under the new agreement, Channel would still sell the hydrocracking assets to Seadra for US$33.88m but keep it in New Zealand. It would also sell additional decommissioned refinery assets for $US23m and receive rental income of NZ$6-7m annually.
"Attracting another potential international future fuels project to Marsden Point is further validation of the unique nature of our strategic site," Channel chief executive Rob Buchanan said.
"While there can be no guarantee that these projects will ultimately proceed, the fact that we have been able to attract two potential projects of this calibre is testament to the attractiveness of our Marsden Point site for the production of lower-carbon fuels and the inherent value of our land," he said.
Channel said it has given itself until the second half of next year to work through arrangements, with no date on when the new biorefinery would become operational.