8 Jun 2011

Mighty River commits to $466m geothermal station

1:29 pm on 8 June 2011

Mighty River Power is expanding its geothermal portfolio with a new $466 million plant north of Taupo.

The plant, which will be built on the Ngatamariki geothermal steam field, will have an initial output of 82 megawatts and be running at full capacity in mid-2013.

It was granted resource consents in May last year and construction will begin next month.

Mighty River Power chief executive Doug Heffernan says the plant will be the state-owned company's third major geothermal development.

When it is completed, 40% of the company's production will be from geothermal sources, he says, with most of the remainder consisting of hydro-electric production.

Mr Heffernan says 100 to 150 people will be employed during the plant's construction.

The development will be funded, in part, through a new $250 million debt facility.