Mercury Powers Up New Geothermal Unit in New Zealand

  • Mercury Energy brought its new 46 MW geothermal unit online near Taupō, boosting renewable capacity ahead of winter.
  • The expansion is part of Mercury’s $1 billion investment in new renewable generation projects.

Mercury Energy has started a new geothermal generator near Taupō and now sends electricity to the national grid. The company invested $220 million in the project and plans to reach full operation by March.

The upgrade adds 46 megawatts of renewable power to the system and lifts the Ngā Tamariki station’s capacity from 86 MW to 132 MW. This amount of power can supply about 55,000 homes during winter demand. Mercury also expects the station to generate around 1,120 gigawatt-hours of electricity each year, enough to serve roughly 158,000 homes.

The station draws geothermal steam from nine wells that reach depths of more than 3000 metres. Temperatures at that depth reach up to 290 degrees Celsius, which provides the heat needed for generation.

Furthermore, Chief executive Stew Hamilton confirmed that the project forms part of a wider $1 billion renewable investment strategy. Mercury will also build stage two of the Kaiwera Downs wind farm in Southland and the Kaiwaikawe wind farm in Northland.

Mercury owns the Ngā Tamariki station and develops the geothermal resource in partnership with Tauhara North 2 Trust and mana whenua Ngāti Tahu Ngāti Whaoa. The trust holds resource consents, earns revenue from the station, and has the option to take an equity stake.

Geothermal exploration at Ngā Tamariki began in 1986 and led to the commissioning of the first power station in 2013.

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