Generation News
MEDIA RELEASE: 19 November 2008
Local resurgence to recapture world geothermal leadership
Mighty River Power is taking the initiative to rebuild New Zealand’s leadership in geothermal energy, boosting development of a world-class energy resource as its top strategic priority.
The company is implementing the biggest global development of new geothermal fields in the past five years and is well on the way to building a billion dollar geothermal business.
Speaking at the company’s new $300 million Kawerau Geothermal Power Station, Mighty River Power Chief Executive, Doug Heffernan, said New Zealand used to be a world-leader in geothermal energy development, but there had been little significant development for 20 years.
“Mighty River Power is changing that. In association with our Maori partners we are leading the charge to develop New Zealand’s world-class geothermal resources,” said Mr Heffernan.
“It’s important to recognise that New Zealand is fortunate to have these world-class geothermal resources and – in partnership with Maori – we are harnessing them for the benefit of all New Zealand, now and for future generations.
“What New Zealanders and tourists see in some areas as geothermal steam and water, we see in other areas as a valuable indigenous energy resource, capable of being harnessed to produce electricity to power households, communities, business and industry.”
The 100 Megawatt output from the Kawerau station – New Zealand’s biggest geothermal energy project for the past 20 years – is sufficient to meet the electricity requirements of 100,000 households and provides electricity price certainty for Kawerau’s major industry, the Norske Skog Tasman paper mill.
Mr Heffernan said the Kawerau station is a superb example of the company’s commitment to geothermal energy and an important addition to the nation’s renewable and sustainable energy resources.
The station was built before deadline, under budget and is producing 10 per cent more energy than originally estimated.
“This plant is an example of how we are adding to our generation portfolio to provide more diverse, sustainable and reliable energy for households, business and industry,” said Mr Heffernan.
“While hydro generation is the core of the company’s generation output, we are really excited about the potential of geothermal as an energy source, especially with its significant environmental advantages being renewable, with very low greenhouse emissions and a relatively small physical footprint.”
Construction at the Kawerau station began in January 2007 on land owned by Norske Skog Tasman after negotiations, that started in 2002 with the Crown, the Ngati Tuwharetoa (Bay of Plenty) Settlement Trust and the Putauaki Trust, for geothermal use rights.
At its peak there were 27 companies and more than 400 people on site, with millions of dollars being pumped into the Kawerau economy. The plant came on stream in August – six weeks ahead of deadline and under budget. There are 11 permanent jobs at the plant.
In addition to Kawerau, in two years Mighty River Power’s nearby Nga Awa Purua geothermal plant – developed in partnership with the Tauhara North No. 2 Trust – will be on-stream with 132 Megawatts on the Rotokawa field near Taupo. The company is also currently drilling exploration wells on the Ngatamariki field north of Taupo.
In partnership with Maori, Mighty River Power is now active in four geothermal fields. Mr Heffernan says Kawerau is an excellent example of these partnerships. Commercial relationships with the Putauaki Trust and Ngati Tuwharetoa Geothermal Assets are a cornerstone of the Kawerau development and the overall management of the Kawerau resource.
“We believe commercial, cultural and community goals can be compatible and we have demonstrated this with our partnerships in our geothermal projects. We will extend and enhance these partnerships wherever possible in future generation developments.”
Geothermal energy - how it works at Kawerau
Geothermal fluid – at 215-220 degrees Celsius – is extracted from six wells ranging from 1900 to 2100 metres deep in various sites two kilometres from the Kawerau Geothermal Station.
Pressurised steam and water is transported through eight kilometres of pipeline to the station where it is separated from the water, with the steam being used to drive a single steam turbine and generator.
The steam is cooled and injected into a well two kilometres north of the field. The remaining water is injected into four wells, two kilometres north of the field. Electricity from Kawerau is fed into the national grid at a substation near the Norske Skog Tasman mill.
ENDS
For further information please contact:
Mark Hanson
Acting Communications Manager
Tel: 09 308 8215
Mob: 021 751 772