What is GeoFuture
GeoFuture is our strategy to modernise the way we generate renewable energy from the Wairākei geothermal field, that is part of the Wairākei-Tauhara Geothermal System, ensuring it is done in an efficient and sustainable way while reducing effects on the Waikato River and its local tributaries.
In December 2022, following comprehensive engagement with the local community and tangata whenua, we were granted a suite of resource consents to operate for the next 35 years on the Wairākei geothermal field.
Through GeoFuture, we will:
- Build Stage 2 of the power station at Te Mihi (Stage 1 was completed in 2014).
- Close the Wairākei A&B power stations, the second oldest geothermal plant in the world, by no later than 30 June 2031 and as soon as Stage 2 is completed.
- Invest locally with approximately $600m in revenue generated for the Waikato Region during construction.
- Increase generation of renewable and reliable low carbon electricity on the Wairākei geothermal field from around 320 megawatts (MW) to up to 400 MW – enough for 70,000 more homes.
- Stop discharging geothermal water from our operations into the Waikato River and local streams by no later than 30 June 2026.
- Continue to provide heat and geothermal water to local businesses, including Huka Prawn Park and Wairakei Terraces.
Why Te Mihi Power Station Stage 2?
New Zealand is working towards decarbonisation, which includes reducing our reliance on energy generated from fossil fuels such as coal and gas. Some renewable energy sources are not available all the time, so it’s important to have other reliable renewable energy sources available for when the sun isn’t shining, or the wind isn’t blowing.
Geothermal plants generate 24/7 producing clean, low carbon renewable electricity and are not reliant on the weather.
Subject to final investment decision (anticipated to be in the first half of 2024), we plan to expand the power station at Te Mihi, providing around 180 MW (equivalent to around 4.75% of New Zealand’s electricity). This will require significant expansion of the existing steam field infrastructure, and drilling and connecting additional production and reinjection wells. Te Mihi Power Station Stage 2, the existing Te Mihi Power Station units 1 and 2, and Poihipi Power Station will all be operated as an integrated system, optimising our ability to convert geothermal energy into electricity.
Contact has already commenced drilling four wells at Karapiti and Te Mihi, adjacent to the existing Te Mihi power station.
While Te Mihi Power Station Stage 2 will replace the Wairākei A&B Power Station as well as the Wairākei Binary Plant, the new development will generate around an additional 350-gigawatt hours (GWh) a year from the Wairakei geothermal field, including the generation from Te Mihi Units 1 and 2 (Stage 1) and Poihipi Power Station. This would power the equivalent of both Taupō and Turangi (around 25,000 households). This will help reduce the need for electricity generated by fossil fuels and could reduce CO2 emissions equivalent to the exhaust pollution created by around 55,000 petrol cars.
Environmental and community benefits
As part of our commitment to reduce and mitigate the impacts of our operations on the natural environment, we are significantly reducing our impacts on local waterways. As part of GeoFuture, we have committed to stopping all operational discharges of separated geothermal water into the Waikato River by mid-2026. We will also stop discharges of cooling water from Wairākei A&B Power Stations into the Waikato River by no later than mid-2031 and as soon as Te Mihi Power Station Stage 2 is operational.
Geothermal water naturally contains heat, arsenic, mercury, silica, and hydrogen sulphide (H2S), which can adversely affect aquatic life. Contact has worked hard to reduce volumes and impacts by moving generation from Wairakei to Te Mihi. We are 'injecting' more geothermal water underground, and operation of a bioreactor at the Wairākei A&B Power Stations has drastically reduced the discharge of hydrogen sulfide (H2S) into the Waikato River since 2012.
We monitor the effects our geothermal operations have on flora and fauna, and support efforts to protect and enhance native species across the Taupō Volcanic Zone.
Why Contact?
Contact is one of the country’s largest electricity generators, with five existing geothermal power stations, and another two under construction, in the Central North Island region.
We have world class geothermal capability, with operational experience of running the world’s second longest electricity producing geothermal field (Wairakei, since 1958). Understanding the subsurface environment and managing the precious geothermal resource in a sustainable manner are key to the success of any geothermal development. To achieve that, you need to have some of the top geothermal minds in the world on your team. We do.
Tangata whenua partnership
Contact worked closely with the four mana whenua Marae that formed the ‘Wairakei Hapu Collective’ (Te Kapa o Te Rangiita Marae, Te Rangiita Marae, Maroanui Marae and Nukuhau Pā). Consultation started in June 2021, culminating in a comprehensive mitigation agreement in December 2022. This agreement mitigated the spiritual, cultural and environmental impacts of GeoFuture within the Wairākei lands and geothermal field. A primary focus has been working together on joint Taiao (environment) plans for the Wairākei Lands and the establishment of a long-term Hapū-Contact working partnership, called the Wairakei Relationship Group. This group is resourced with a dedicated Project Manager and a Cultural Monitor. They help to support and drive the aspirations of tangata whenua.
In the words of the Wairākei Hapū Collective, Chairperson, Greg Stebbing;
“The GeoFuture consultation process was an enjoyable and highly educational experience for both Contact and tangata whenua. Contact’s operations make the practice of kaitiakitanga (guardianship) at Wairākei difficult for hapū. The loss of land and geothermal resources has created long-standing mamae (underlying hurt). The 18-month GeoFuture consultation process developed a high level of understanding of kaitiaki aspirations and respect between Contact’s local team, senior leadership, and the Contact Board”.