Contact Energy has confirmed it wants to develop a 20MW geothermal generation plant in Taupo in part of plans to spend $1 billion over the next five years on new power stations in the area.
Chief executive David Baldwin said the $75 million plant, which is already covered by resource consents, will take geothermal steam from the Tauhara steamfield and produce enough electricity for nearly 20,000 homes.
The project is the first stage of the proposed development of the Tauhara geothermal system.
Although the 20MW plant is relatively small, the baseload nature of geothermal electricity will see this project make a valuable contribution to renewable electricity generation from the Taupo region. The geothermal steam will be piped along 1km to the binary plant, through about 1km of pipe with all used geothermal fluid reinjected back into the edge of the steamfield.
Contact's three power stations in the Taupo region produce about 5 per cent of the country's total energy.