Pioneer Energy, which is 100% owned by the Central Lakes Trust, would remain the majority shareholder in the subsidiary company.
The announcement followed an international equity raise process.
Pioneer said in a statement the successful bid came from a New Zealand-based organisation which aligned closely with Pioneer Energy and Central Lakes Trust’s values and community-focused approach.
While the amount of the investment has not been disclosed, last month outgoing chief executive Fraser Jonker said seeing the response and value the energy investment sector put on the business was rewarding and his successor, Peter McClean, would be able to move the business forward with that commitment of equity.
Pioneer was formed in 1999 after the electricity industry reforms and evolved from the generation assets of the former Otago Central Electric Power Board.
With its headquarters in Alexandra, it operates nationwide with sites spanning from Auckland to Bluff.
It has a diverse portfolio of assets and partnerships, including renewable energy such as hydro, wind and waste to energy schemes, alongside industrial energy solutions and renewable fuel supplies.
Pioneer had provided $130 million through dividends and interest payments which was then distributed by the Central Lakes Trust to community projects and services.
The Tōtara Energy LP syndicate comprises Tauhara North No 2 Trust, Te Ngakinga o Whanganui Investment Trust, Tupu Angitu, Parininihi ki Waitōtara Incorporation, Ngāti Kahungunu ki Wairarapa Tāmaki-nui-a-Rua Investment Trust, Ngati Awa Asset Holdings, Soul Capital, Purpose Capital and Trust Horizon.
Wikitoria Hepi-Te Huia, chairwoman of Tauhara North No 2 Trust — the cornerstone investor in Tōtara Energy LP — said the collaboration was underpinned by a shared vision for a sustainable future between the new ownership group and a collective commitment to the environment with all benefits ultimately staying in New Zealand and returning directly to the respective communities.
The statement said the capital raised would support Pioneer’s continued investment in renewable energy and waste-to-energy projects.
It would also enable further diversification of the business.
— APL
