Tuesday 23rd June 2020
|Text too small?|
Contact Energy (Contact CEN.NZ) recently completed a $40 million appraisal¹ of the Tauhara geothermal field near Taupō.
Contact CEO Mike Fuge said he was pleased with the progress to date. “The results from the four wells drilled in the appraisal campaign confirm what we already knew: Tauhara is a world-class renewable geothermal project, all the more attractive because of its very low associated CO2 emissions. It will play an important role in New Zealand’s transition to a low-carbon future. To put things in perspective, coal-fired generation emits 18 times more carbon than is expected from the Tauhara project, and gas-fired generation from a peaker emits eight times more.”
“In addition to building our understanding of the resource, we have already secured the equivalent of 75MW of high-temperature production fluid which is a fantastic place to be at this stage of the project.”
After an exhaustive competitive tender, Contact has also selected Sumitomo Corporation (‘Sumitomo’) as the preferred construction partner for a 150MW power station development at Tauhara and an early works contract has been signed. Sumitomo is an engineering, procurement and construction contractor, headquartered in Japan, and has successfully delivered geothermal projects in New Zealand and several other countries.
Sumitomo has partnered with New Zealand construction company Naylor Love for the civil engineering components of the project, and with Fuji Electric for the supply of the steam turbine.
Mr Fuge said the early works contract enabled Sumitomo to commence plant design and advance its site investigation and execution planning. “It also provides the contractual basis to procure long-lead time turbine and generator components. The Tauhara development is now technically shovel-ready and only subject to a final investment decision as soon as market conditions allow.“
“If Tauhara proceeds, we expect to make an additional investment in the order of $600m¹. This means it remains New Zealand’s cheapest and most attractive baseload renewable electricity generation project, and it will deliver substantial economic benefits and jobs in the central North Island.”
Source: Contact Energy (Contact CEN.NZ)
No comments yet
Napier Port Holdings Limited (NZX: NPH) 2021 Earnings Guidance Update
Comvita Limited (NZX: CVT) Full Year Guidance Update
Scott Technology Limited (NZX: SCT) Meat Industry Contract Win
PaySauce Limited (NZX: PYS) Quarterly Market Update
NZ Windfarms Limited (NZX: NWF) Agrees a New VVFPA for Q1 2022 to Q3 2022
Harmoney Corp Limited (NZX: HMY) 3Q21 Trading Update
Pacific Edge Limited (NZX: PEB) United Healthcare Issues Positive Coverage Cxbladder
Scott Technology Limited (NZX: SCT) 2021 Half Year Announcement
NZX Limited (NZX: NZX) Appoints Specialist Global Expert to Tech Committee
AFT Pharmaceuticals Limited (NZX: AFT) Secures New Partners in Poland and Greece