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:

Huawei Poised to Get Go-Ahead for U.K.’s 5G Networks Tuesday
Stocks Tumble Around the World on Virus Jitters: Markets Wrap
28th January 2020 Morning Report
NZ dollar rises on CPI data, capped by virus fears
U.S. Auto Tariffs Still Option If Protectionism Stays, Ross Says
Stocks Edge Higher With Virus Fallout in Focus: Markets Wrap
24th January 2020 Morning Report
Australia’s Unemployment Rate Unexpectedly Falls to 5.1% in December
Cannasouth appoints experienced new CFO
Technology Shares Climb on Tax Accord, Oil Tumbles

IRG See IRG research reports