NZ's Contact Energy will build a new geothermal plant for $421 million
Contact Energy, a New Zealand-based energy producer, will spend NZ$712 ($421.65 millions) on a new geothermal plant of 101 MW, Te Mihi Stage 2. The firm announced this Wednesday that it aims to replace Wairakei's geothermal powerstation, which is more than 70 years old.
Contact has announced that it will continue to operate the power plant built in the 1950s until mid-2027.
Contact will be able retain 67MW of capacity at Wairakei Station from mid-2027 to mid-2031. The cost of this extension is expected to be NZ$74million.
The Wellington-headquarted company said the new plant is expected to be operational by the third quarter of calendar year 2027.
The company stated that Te Mihi Stage 2 along with the extension investment would allow them to achieve a geothermal production increase of 0.2 terawatt-hours (TWh), per year, from fiscal 2028-2031.
The new build is ready for execution. The new build is supported by an advanced front-end, a successful drill campaign, and a major projects team with experience," said CEO Mike Fuge.
(source: Reuters)
