NZ's Contact Energy to build new geothermal power plant for $421 mln (updated)

Contact Energy

12/11/2024 20:15

(Adds details from paragraph 2 onwards)
       Nov 13 (Reuters) - New Zealand's Contact Energy  CEN.NZ 
will fork out NZ$712 million ($421.65 million) to build a new
101 MW geothermal plant, Te Mihi Stage 2, as the energy producer
aims to replace the more than 70-year old Wairakei geothermal
power station, the firm said on Wednesday. 
    The Wairakei power station, the world's second geothermal
power station and also the first to use flash steam from
geothermal water to produce electricity, was due to be phased
out by 2026, but Contact said it will extend the running of the
1950s built power station until mid-2027.
    Contact will be able to retain 67 MW of capacity at the
Wairakei station from mid-2027 until mid-2031, with an expected
cost of the extension being NZ$74 million. 
    The Wellington-headquarted company said the new plant is
expected to be operational by the third quarter of calendar year
2027. 
    The company said Te Mihi Stage 2 coupled with the extension
investment, would help them to deliver a 0.2 terawatt hours
(TWh) per annum uplift in geothermal generation from fiscal
2028-2031. 
    "The new build is execution-ready. It is supported by
advanced front-end design, a successful drilling campaign and an
experienced major projects team," said CEO Mike Fuge.
        
  
($1 = 1.6886 New Zealand dollars)

 (Reporting by Rajasik  Mukherjee; Editing by Shailesh Kuber)
 ((Rajasik.Mukherjee@thomsonreuters.com;))