Keen on geothermal
Contact, the country's second-largest energy retailer, operates a mix of hydro, geothermal and gas-fired generation. It has been looking to expand its geothermal generation and trim its gas interests as part of a strategy to help its biggest industrial customers reduce their carbon emissions.
The firm has had consents for a 250-megawatt project at Tauhara since 2010 but dusted off plans for a smaller development there in recent years amid flat demand but increasing gas and emission costs at its gas-fired operations.
Former chief executive Dennis Barnes said the company was unlikely to commit to the Tauhara project until it knew whether the Tiwai Point smelter – the country's biggest electricity user - was to continue operating. But it also wanted the new plant available before it shuts its 377-megawatt gas-fired Taranaki Combined Cycle plant in 2023.
Fuge said four appraisal wells the firm has just completed at Tauhara have confirmed the company's belief that it is a world-class renewable source.
The field's very low carbon-dioxide content means it can play an important role in the country's decarbonisation efforts, he said.
Lower emissions
Fuge noted that coal-fired generation creates about 18-times the emissions that the new Tauhara project would, while a gas-fired peaking plant would create about eight-times the emissions.
Contact is not the only generator planning or building new plant, but it has been working closely with Meridian Energy to offer a lower energy price for the Tiwai smelter to try and keep it operating here.
Mercury NZ is building its Turitea wind farm near Palmerston North, while Genesis Energy has contracted all the output from the Waipipi wind farm Tilt Renewables is building near Waverley.
Nova Energy earlier this year commissioned a 100 MW gas-fired peaker near New Plymouth. Last month, Meridian Energy said it was close to selecting a turbine supplier for its Harapaki wind project north of Napier.