Photo: 123RF
The Green Investment Fund will lend up to $25 million to support Whakatāne-based Eastland Generation's plans to build a geothermal plant.
The state-owned investment fund's loan would assist with the construction of a 50-megawatt geothermal plant, as well as upgrades to the existing 25-megawatt Te Ahi O Maui geothermal plant.
The combined energy generation was enough to power more than 13,000 homes.
The funding was expected to improve the energy resilience of the Eastern Bay of Plenty region, with benefits to industry and farming.
Eastland Generation was owned by Eastland Group, a specialist infrastructure company headquartered in Tai Rāwhiti, which also operated Eastland Port and Gisborne Airport.
Eastland Group was using the proceeds from the sale of its electricity distribution business to invest in generation.
The sale was controversial, but went ahead late last year after Overseas Investment Office approval.
Gisborne District councillor Colin Alder had criticised the sale, saying it should be kept under local control, and now was not the right time to be selling it.
The sale was defended by former trustee Joe Martin who said the trust deed encouraged current trustees to consider the continued ownership of it every three years.