Kawerau will be home to a new geothermal powerplant following a deal made between the Te Ahi O Maui partnership and an Israeli company, Ormat.
The Te Ahi O Maui geothermal project is a partnership between Eastland Generation and the Kawerau A8D Ahu Whenua Trust, who are owners of the land on which the plant will be constructed.
Ormat is a world-leader in the development and construction of state of the art geothermal power solutions.
Project Manager Ben Gibson said he expected construction to start towards the end of this year with completion likely in 2018.
He believed the new plant would deliver in excess of 22 megawatts of electricity.
Te Ahi O Maui chairman and Eastland Ground chief executive Matt Todd said he was pleased the project had partnered with Ormat for construction of the powerplant.