Contact Energy is increasing its investments in renewable energies. The company is accelerating to connect as many customers as possible. In this way, it contributes to New Zealand’s decarbonization.
Contact develops a geothermal power plant in Te Huka
The company will develop a new geothermal power plant. Located in Te Huka, near Taupo, it has a capacity of 51.4 MW.
This announcement comes at a time when the Tauhara geothermal plant is performing well. With a capacity of 168 MW, it intends to supply 3.5% of New Zealand’s demand by the end of the year.
In addition, Contact Energy aims to increase its production capacity. Mike Fuge, CEO of Contact Energy, states:
“While COVID-19 has impacted the progress and cost of the project, we continue to evaluate all options to provide more production and enhance yields.”
The company is investing $300 million to build the plant. This one is located near a company power plant. Once construction is complete, Contact Energy’s production capacity will increase by 25%.
In addition, this represents a 5% increase in renewable energy production in New Zealand.
Contact Energy invests in the energy transition
In order to support the demand for renewable electricity, it is multiplying contracts such as with Oji Fibre, Pan Pac, Genesis Energy and Foodstuffs.
In order to accelerate its energy transition, Contact Energy has announced that it will close its Te Rapa plant in June 2023. This will reduce its carbon emissions by 20% or 200,000 tons per year.
Contact Energy wants to diversify
In addition, Contact Energy intends to develop wind power projects. Through its relationship with Roaring40s, the company has secured land access rights. Thus, it will be able to deploy wind farms across the country.
In addition, the New Zealand company is banking on solar energy. She has approached Lightsource bp. The two companies have entered into a joint venture partnership for a series of solar projects.
Finally, the company intends to develop energy storage projects. It plans to develop a 100 MW project. However, the company is held back by current costs.
In fact, it is important to mention the results of Contact Energy. The company recorded a net profit of $182 million, although this is $5 million less than last year. This is explained by a decrease in EBITDAF due to the increase in gas prices.
Mr. Fuge explains:
“This unpredictability has been compounded by a combination of global energy supply and security concerns, exacerbated by the impact of Russia’s invasion of Ukraine, with subsequent unprecedented increases in international energy prices, including coal, which has also coincided with a reduction in domestic gas production.”