Taheke 8c & Adjoining Blocks Geothermal Project
Taheke 8C Geothermal is a landmark energy development endeavor, the first ever using IDG’s N2N equity participation model to ensure Maori ownership and benefits.
As a client, IDG led the negotiations that resulted in an agreement between the Maori proprietors of Taheke and New Zealand’s largest privately owned geothermal power generation company.
IDG’s services included scientific and engineering reviews, the development of financial scenarios, extraction valuation analysis and structuring final contractual obligations.
The Taheke 8C project became operational in 2009 on Maori Trust land. IDG holds an option to negotiate and acquire equity.
The Proprietors of Taheke 8C & Adjoining Blocks Incorporation is a Maori incorporation established under the Te Ture Whenua Maori Act of 1993. The Taheke 8C Inc is a Maori incorporation that is actively seeking to develop a number of projects on their land specifically hydro and geothermal projects. Lead by Project Manager, Sandra Eru the Taheke 8C Inc is managed by a Committee comprised of 7 members lead by chairperson, Tawhiri Morehu.
IDG was selected by the management Committee in October 2009 after previously applying for a joint venture partnership role in the proposed geothermal development to provide consultancy services to assist and support the Taheke 8C Inc team during the exploration phase and negotiation process of their proposed green field geothermal development on Taheke 8C Inc’s land.
The specific services performed by IDG for the Taheke 8C Committee were:
- Develop and support financial scenarios evaluating the Net Present Value (NPV) of the submitted bids.
- Provide as needed analysis, deal terms structure of each party’s contractual obligations under the submitted bids.
- Provide as needed analysis of the broader commercial value extraction issues:
- Ability to realize value in a minority ownership scenario
- Ability to monetize contractual obligations for investment purposes
- Desirable data sharing requirements
- Negotiation Support: developed a broad set of goals for negotiation purposes to be cast in multiple outcome scenarios for ongoing evaluation during the negotiation process.
- Scientific and engineering review and support:
- Provide scientific advisory services regarding general field potential;
- Evaluate existing or submitted scientific evidence and to the extent possible;
- Engineering support regarding the design and implementation of the geothermal facility.
IDG was able to help the Proprietors of the Taheke 8C & Adjoining Blocks Inc. successfully negotiate and sign off on a deal with the largest privately owned geothermal power generation company in New Zealand (Aotearoa) for a proposed Geothermal Project set to come online in 2013. This deal used the equity participation model, which is the first of its kind for Maori in New Zealand. IDG was responsible for negotiating the details of the Taheke deal with all major geothermal players in the New Zealand. This was a landmark transaction with Maori participating in ownership from the outset.