Sharechat Logo

Contact Energy to spend $30M on geothermal appraisal wells

Wednesday 29th May 2019

Text too small?

Contact Energy will spend $30 million on a series of appraisal wells on Taupo's Tauhara geothermal steamfield as it builds towards a final investment decision for a new power station in 2020.

The drilling programme - involving four appraisal wells - will commence in August and be completed in early 2020, it said. The bulk of the $30 million will be spent in New Zealand. 

“A potential new geothermal power station at the foot of Tauhara Maunga is New Zealand’s cheapest and most attractive option for renewable baseload electricity generation,” said chief executive Dennis Barnes. 

According to Barnes, geothermal energy is important in the transition to a low-carbon future as it provides baseload generation unlike weather dependent wind, solar or hydro generation.

Currently, Contact's geothermal electricity makes up 8 percent of New Zealand's electricity supply. The company employs around 150 people in Taupo directly and spends around $55 million annually in the region. 

“Geothermal energy can also provide a low carbon supply of direct heat for industrial processes and we are working with a number of interested parties on prospective developments," he added. 

The stock was unchanged at $7.34. 

(BusinessDesk)



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Vector urges regulatory change in low-interest-rate environment
Vector urges regulatory change in low-interest-rate environment
Govt moves against surprise Supreme Court 'black hole' tax ruling
Qantas CFO Race Strauss to join A2 Milk as CFO
Climate Committee seeks data, evidence for future carbon budgets
Spark's wobbly world cup start raises stakes for live-streaming - analysts
An algorithm dunnit: anatomy of Spark's mid-match surrender
Stanley-Tallwood liquidator cuts deal over KiwiBuild development
Stanley-Tallwood liquidator cuts deal over KiwiBuild development
RBNZ expected to keep OCR at 1% but leave door open to more easing

IRG See IRG research reports