GENERAL: CEN: Contact completes Tauhara One ahead of schedule

25 May 2010 8:44 am

CEN 25/05/2010 GENERAL

REL: 0844 HRS Contact Energy Limited

GENERAL: CEN: Contact completes Tauhara One ahead of schedule

25 May 2010

CONTACT COMPLETES TAUHARA ONE AHEAD OF SCHEDULE

Contact Energy has completed its new $100 million, 23 megawatt geothermal power station near Taupo, three weeks ahead of schedule.

"The Te Huka binary plant - also known as Tauhara One - has been completed ahead of schedule and under budget," Contact's Managing Director David Baldwin said.

The power station will provide enough baseload renewable energy to power approximately 23,000 homes.

Tauhara One is the first project in Contact's $600 million current investment programme to be completed. This year Contact will also open the 200 megawatt, $250 million Stratford gas-fired fast-start peakers and the $250 million Ahuroa gas storage facility in Taranaki - projects which will add operational flexibility to Contact's portfolio and additional peaking capacity to New Zealand.

Mr Baldwin said construction of the new peaking power station at Stratford was also progressing well, with construction of the station due to be completed by the end of May at which point it will begin commissioning. All testing of the plant is due to be completed by October.

In addition the first phase of the Ahuroa Gas Storage project, which rounds out Contact's current investment programme, is on track to be complete by the end of 2010.

Mr Baldwin said the early delivery of Tauhara One was an important milestone in Contact's geothermal growth strategy. Contact is currently seeking consents for its 250 MW Tauhara Two geothermal power station through a Board of Inquiry process and advancing development of its consented 220 MW Te Mihi power station.

The company also expects exploration of the Taheke geothermal resource to commence shortly, in conjunction with its joint venture partner, the Taheke 8C Incorporation.

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Louise Griffin 021 243 1442 End CA:00195276 For:CEN Type:GENERAL Time:2010-05-25:08:44:16

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