Contact Energy unlikely to develop Taheke geothermal project

Contact Energy unlikely to develop Taheke geothermal project Geothermal drilling at Te Mihi west of Wairakei, New Zealand. Source: Rjglewis, Commons/ Wikimedia
Alexander Richter 15 Aug 2016

As part of its annual report, New Zealand-based Contact Energy announces that it is unlikely to proceed with the Taheke geothermal project in the foreseeable future.

In a recent release on its annual results, New Zealand based Contact Energy has announced strong cash flows, but also news on its Taheke geothermal power project.

In 2010 we reported on Contact Energy’s partnership with Taheke 8C Trust on the development plans for the Taheke geothermal field. In 2013, Contact Energy announced a delay in the development.

Now Contact Energy reports that the “Taheke geothermal resource is unlikely to be developed in the foreseeable future” and has reported a statutory loss for the year, partly due to the assessment on a stop to the Taheke project.

In a market that increasingly sees a stagnating energy demand, this is maybe not surprising, but these are still sad news for New Zealand’s geothermal sector.

Source: Contact Energy media release (Aug 15, 2016), Taheke 8C