Contact Energy to build new $646m geothermal plant
Make us a preferred source
Make us a preferred source on Google
The news: New Zealand utilities company Contact Energy will build a new geothermal plant as part of plans to redevelop its 1950's-era Wairakei geothermal power station.
The numbers: Construction of the new 101 megawatt (MW) plant, Te Mihi Stage 2, will cost NZD712 million ($646 million) and is expected to be online by Q3 CY27.
ASX- and NZX-listed Contact confirmed that it will also extend the running of the Wairekei power station, originally planned for closure in June 2026, until mid-2027, at which point selected operating units will be retired.
Contact will retain 67MW of capacity at the Wairakei station from mid-2027 until mid-2031 when operations will end. The total expected cost of the station's extension is $74 million.
The new plant and extension investment will enable Contact to deliver a 0.2 terawatt hours (TWh) per year uplift in geothermal generation from FY28 to FY31, compared to the historic Wairekei field output of 2.7TWh per year.
The context: Contact called the investment a "significant milestone" for the business, having committed to long-term sustainable generation on the Wairakei steamfield, a core part of its renewable energy strategy.
What they said: "Moving to this phased re-development plan for Wairakei, including the partial extension of the Wairekei station to 2031, has proven up to be the highest returning option for Contact shareholders," said Contact's CEO Mike Fuge.
The source: ASX announcement
