Contact Energy CEN.NZ of New Zealand announced on Monday that it would invest NZ$300 million ($193.29 million) in the construction of a 51.4 megawatt geothermal power unit close to its Te Huka power station in Taupo. This project would help the company increase its renewable energy production in the face of high demand.
The new investment, coupled with the Tauhara geothermal power station, will raise the country’s total renewable electricity supply by over 5% on average every year, according to the electricity producer, and the company’s by 25% from current levels.
It said that further heat conversion projects being proposed in industry might increase demand, boosting the company’s quick investment in its renewable initiatives.
“While COVID-19 has had an impact on the project’s progress and cost, we continue to assess all options to deliver more output and reinforce returns,” said Mike Fuge, chief executive officer of Contact.
As part of its plan to reduce New Zealand’s carbon emissions, Contact also inked an electricity “swap” contract with power company Meridian Energy MEL.NZ for the years 2023 and 2024, the company announced on Monday.
The corporation announced a final dividend of 21 New Zealand cents per share and reported a net profit of NZ$182 million ($117.26 million) for the fiscal year 2022, a 3% decrease from the prior year.
