NZ's Contact Energy to reinforce renewable energy generation with $193 mln investment (updated)

Meridian Energy

14/08/2022 22:37

(Adds CEO comment, other details, deal with Meridian)
    Aug 15 (Reuters) - New Zealand's Contact Energy  CEN.NZ 
said on Monday it would spend NZ$300 million ($193.29 million)
to build a 51.4 megawatt geothermal power unit near its Te Huka
power station in Taupo, that would help bolster its renewable
power generation amid high demand.
    The electricity producer said that the new investment, along
with the Tauhara geothermal power station will collectively
increase the country's total renewable electricity supply by
over 5% on average per year and the company's by 25% from the
current levels.
    It said it was witnessing further demand growth potential
with more proposed heat conversion projects in industry,
supporting the company's rapid investment into its renewable
projects.
    "While COVID-19 has had an impact on the project’s progress
and cost, we continue to assess all options to deliver more
output and reinforce returns," said Mike Fuge, chief executive
officer of Contact.
    Contact also signed a electricity "swaption" contract with
power firm Meridian Energy  MEL.NZ  for 2023 and 2024 as part of
its strategy to lower New Zealand’s carbon emissions, it said on
Monday.
    The company posted a net profit of NZ$182 million ($117.26
million) for the fiscal 2022, down 3% from last year and
declared a final dividend of 21 New Zealand cents per share.
     


($1 = 1.5521 New Zealand dollars)

 (Reporting by Savyata Mishra in Bengaluru; Editing by Daniel
Wallis)
 ((Savyata.Mishra@thomsonreuters.com;))