- Ormat Technologies and Contact Energy partner to build a 101 MW geothermal power plant in New Zealand, supporting the country’s zero-emissions goal.
- Te Mihi Stage 2, valued at $200 million, will replace the 1950s-era Wairakei plant using Ormat’s zero-emissions binary technology.
- The project, expected to be completed by mid-2027, will add to New Zealand’s renewable energy capacity, with a 160 MW expansion planned through future phases.
Ormat Technologies will partner with Contact Energy to construct the Te Mihi Stage 2 geothermal power plant in New Zealand. The project, with an installed capacity of 101 megawatts (MW), forms part of a $200 million Engineering, Procurement, and Construction (EPC) agreement between the companies.
Te Mihi Stage 2 will replace the ageing Wairakei geothermal plant, which began operations in the 1950s. The companies plan to complete the plant by mid-2027, adding to New Zealand’s renewable energy capacity and reducing greenhouse gas emissions. The project directly supports the country’s goal of achieving zero emissions.
Ormat Technologies specialises in renewable energy technologies, particularly geothermal solutions. The company will install its advanced binary technology at Te Mihi Stage 2. This system, designed for high-enthalpy geothermal reservoirs, ensures the plant will operate with zero emissions, a critical factor for New Zealand’s clean energy future.
Ormat CEO Doron Blachar underscored the partnership’s significance. “This collaboration with Contact Energy drives us closer to a sustainable future,” he said. “Our advanced binary technology at Te Mihi Stage 2 offers a cutting-edge, zero-emissions solution.”
Ormat aims to expand its geothermal capacity through the Te Mihi project. Contact Energy also plans to launch Te Mihi Stage 3, with commissioning expected by 2031. The two projects will add 160 MW of geothermal power to New Zealand’s energy portfolio, further bolstering its renewable energy output.
Ormat expects the Te Mihi Stage 2 contract to increase its order backlog. The company forecasts its backlog to exceed $300 million by the end of 2024, with revenue from the project mainly coming in 2026 and 2027. This expansion strengthens Ormat’s standing in the geothermal sector and reinforces its role as a leader in geothermal innovation.
New Zealand aims to increase its renewable energy capacity to meet its environmental goals. The Te Mihi Stage 2 project will help the country reduce reliance on fossil fuels while transitioning to cleaner energy sources.
Te Mihi Stage 2 represents a significant milestone in New Zealand’s energy transition and economic development. The project aligns with the country’s long-term strategy to achieve carbon neutrality while providing reliable, sustainable energy.
Ormat’s advanced geothermal technologies are helping nations like New Zealand meet climate and energy goals. This partnership with Contact Energy will expand New Zealand’s renewable energy capacity and serve as a model for other countries aiming to balance economic growth with environmental sustainability.