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    Ormat Technologies Hired for $200M EPC Contract to Develop 101-MW Geothermal in New Zealand

    Nov. 18, 2024
    Contact Energy is also planning a second phase of development, Te Mihi Stage 3, which is expected to be operational by mid-2031, subject to final investment decision.
    Picture of the original Wairakei geothermal plant in New Zealand. Image credit Ingolfson/courtesy Wikimedia Commons
    Picture of the original Wairakei geothermal plant in New Zealand. Image credit Ingolfson/courtesy Wikimedia Commons

    Ormat Technologies has announced an Engineering, Procurement, and Construction (EPC) contract with Contact Energy to develop the Te Mihi Stage 2 101 MW geothermal power plant in New Zealand.

    The EPC contract, worth about $200 million, is expected to be signed after the approval from Contact Energy’s Board of Directors. The project is expected to be completed by mid-2027.

    The agreement marks Ormat’s fourth project in New Zealand, currently under development and is expected to replace the Wairakei geothermal power station (pictured above), in stages. It also highlights Ormat’s work in developing binary technology, which is also suitable for high enthalpy geothermal reservoirs. Ormat also has worked on geothermal in the U.S.

    Contact Energy is also planning a second phase of development, Te Mihi Stage 3, which is expected to be operational by mid-2031, subject to final investment decision.

    “We expect that our year-end Product Segment backlog, once the contract is signed, will exceed $300 million and we will recognize the bulk of the revenues associated with this contract during 2026 and 2027,” said Doron Blachar, Chief Executive Officer of Ormat Technologies. “The 101MW Te Mihi Stage 2 plant, along with the additional 160 MW we are currently building in New Zealand, strengthens our position as market leader while also expanding New Zealand’s renewable energy capacity to support the country’s ambitious goal of achieving zero emissions.”

    The Wairakei Power Station, built in 1958, lies near the Taupo volcanic zone. When originally built, it was the first wet steam geothermal power plant in the world.

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    About the Author

    EnergyTech Staff

    Rod Walton is senior editor for EnergyTech.com. He has spent 14 years covering the energy industry as a newspaper and trade journalist.

    Walton formerly was energy writer and business editor at the Tulsa World. Later, he spent six years covering the electricity power sector for Pennwell and Clarion Events. He joined Endeavor and EnergyTech in November 2021.

    He can be reached at [email protected]. 

    EnergyTech is focused on the mission critical and large-scale energy users and their sustainability and resiliency goals. These include the commercial and industrial sectors, as well as the military, universities, data centers and microgrids.

    Many large-scale energy users such as Fortune 500 companies, and mission-critical users such as military bases, universities, healthcare facilities, public safety and data centers, shifting their energy priorities to reach net-zero carbon goals within the coming decades. These include plans for renewable energy power purchase agreements, but also on-site resiliency projects such as microgrids, combined heat and power, rooftop solar, energy storage, digitalization and building efficiency upgrades.