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SNC Lavalin in JV with other firms secures EPC contract for Te Mihi project

Geothermal drilling at Te Mihi west of Wairakei, New Zealand. Source: Rjglewis, Commons/ Wikimedia
Alexander Richter 2 Mar 2011

A JV of SNC-Lavlin, McConnell Dowell and Parsons Brinkerhoff securues EPC contract or the construction of the 166 MW Te Mihi geothermal project by Contact Energy in New Zealand.

Reported last week, “SNC-Lavalin has announced that Contact Energy has awarded the McConnell Dowell/SNC-Lavalin/Parsons Brinkerhoff joint venture an engineering, procurement, construction, or EPC, contract for the construction of the 166MW Te Mihi geothermal project.

Two new geothermal power units of 83 MW each will be constructed near the Wairakei geothermal power station, northwest of Taupo, NZ. Once completed, approximately 45 MW of the existing Wairakei geothermal station will be decommissioned, resulting in a net increase from the combined Te Mihi and Wairakei stations of 114 megawatts.

“We are pleased to be expanding our experience in the worldwide renewable energy market, and to be working with a leading green energy company like Contact Energy” said Patrick Lamarre, Executive Vice-President, SNC-Lavalin Group. “Geothermal power is playing an increasingly important role in the industry, and our mandate to execute on this contract is a testament of our ability to successfully deliver complex projects all over the world.”

Contact Managing Director, David Baldwin, says the commitment to Te Mihi reflects the company’s view that geothermal is New Zealand’s most cost effective new base load generation.

“The additional 114 megawatts is expected to be required by the market by 2013 as economic growth resumes, and will also contribute to lowering Contact’s average cost of generation,” he said.”

Source: iStockAnalyst