10 | REGIONAL DEVELOPMENT Contact Energy - Te Huka Upgrade T T Karen Phelps New geothermal plant cutting edge Te Huka Unit 3 geothermal power station is situated adjacent to Contact’s existing Te Huka power station in Taupō, and is designed to operate around the clock. Contact Energy is making significant strides in its mission to grow its renewable energy portfolio with the construction of Te Huka Unit 3, a geothermal power station that will be one of the world’s largest single-unit binary power plants. James Byrd, the company’s project director, is enthusiastic about the project’s potential to revolutionise renewable energy generation. “Geothermal energy stands independent of weather conditions and represents an extraordinary resource, perfectly suited for replacing the continuous fossil fuel generation on the national grid. Contact’s geothermal power stations operate consistently, boasting an impressive 95% uptime, surpassing the performance of solar, wind, and hydroelectric plants,” he says. Te Huka Unit 3 is situated adjacent to Contact’s existing Te Huka power station. Located on Centennial Drive in Taupō, the Te Huka Unit 3 power station is designed to operate around the clock, producing baseload electricity. It is projected to contribute an additional 1% of renewable electricity to New Zealand’s energy mix, roughly equivalent to 430 GWh. This output can power approximately 60,000 homes, significantly reducing reliance on non-renewable energy sources. One of the most innovative aspects of the Te Huka Unit 3 project is its carbon capture and reinjection technology. This cutting-edge design will allow carbon emissions from the power station to be re-injected into the geothermal reservoir, effectively sequestering them. Following a successful trial at Te Huka’s existing two units, the carbon is now being re-injected as part of the everyday running of the power station. This carbon reinjection initiative aims to remove 10,000 tonnes of CO2 from the environment annually. The Te Huka Unit 3 project’s realisation has been made possible through a strategic agreement that marks a significant milestone for Contact and New Zealand as a whole. Contact has entered into a ground breaking 10-year renewable Attribute Purchase Agreement (APA) with Microsoft. Under this arrangement, Contact will provide Microsoft with all the renewable energy attributes generated by Te Huka Unit 3. James highlights the importance of this partnership, as it provided the necessary support to advance the project. “The ownership of renewable energy attributes is the global standard for electricity customers to demonstrate their use of a new renewable source, promoting the adoption of T T to page 12 renewable electricity,” he says. The Te Huka Unit 3 project also brings economic benefits to the region. During the peak of construction, it is anticipated to generate 250 skilled construction jobs and inject over $140 million into the New Zealand economy, with a substantial portion benefiting the Taupō community. The project remains on “Geothermal energy stands independent of weather conditions and represents an extraordinary resource, perfectly suited for replacing the continuous fossil fuel generation on the national grid. Contact’s geothermal power stations operate consistently, boasting an impressive 95% uptime, surpassing the performance of solar, wind, and hydroelectric plants.”
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