News

Taupo Maori Trust signs geothermal drilling deal with Contact Energy

Tauhara project information presentation (source: Contact Energy)
Alexander Richter Alexander Richter 7 Oct 2011

The local Moari Trust of Tauhara Moana signs a contract that allows Contact Energy to drillin Maori land for the Tauhara 2 geothermal power project in New Zealand.

Reported this morning from New Zealand, the Tauhara Moana Trust (a local Maori trust) has signed a contract with Contact Energy that will allow exploratory drilling to go ahead within the next 12 months.

Contact Energy plans to drill on land owned by the Trust about 600 meters from the proposed Tauhara 2 geothermal power plant project.

“Tauhara Moana Trust chairman Toby Rameka and Contact Energy chief executive Dennis Barnes said strong relationships were essential for responsible development and the agreement marked the beginning of a new phase in the relationship between the trust and Contact.

Trustee Topia Rameka said the agreement was unique and was based on a value-sharing arrangement reflecting the risks and certainties of the project.

He said the trust had not decided to look at a royalties-only scheme but instead wanted to share the risk and receive more of the benefits of geothermal energy production.

The full commercial details of the agreement were not revealed, both parties asking for confidentiality in the short term.”

Source: NZ Herald