Contact Energy Limited · NZX:CEN
Contact Energy — Conference Presentation (2008)
20 slides from Contact Energy's conference presentation, Jul 25, 2008
Slide 1: New Zealand's Geothermal Renaissance
New Zealand’s Geothermal Renaissance the key to our renewable future 1
Slide 2: Roadmap
Roadmap • Context – Contact – New Zealand’s place on the geothermal stage • The geothermal renaissance underway – the New Zealand Energy Strategy and climate change – Contact’s geothermal plans • Full steam ahead – Critical success factors – Reclaiming centre stage 2
Slide 3: Snapshot of Contact Energy
Snapshot of Contact Energy • 635,000 electricity, gas and LPG customers • 28 per cent of NZ’s electricity from 10 power stations • 1,000 staff • 85,000 shareholders • $5.2 billion market cap • Generates 5% of NZ’s electricity from geothermal 3
Slide 4: New Zealand's place on the geothermal stage
New Zealand’s place on the geothermal stage • NZ was once – and is on the road to once again being – a leader in geothermal • Significant and relatively accessible resources • Maui’s distraction is over • Next 10 years a critical period for geothermal in New Zealand • Contact is committed to leading
Slide 5: Contact's commitment to geothermal
Contact’s commitment to geothermal • Contact’s number 1 investment priority – Not just new power stations – But also repowering existing plant • Activity over the last 12 months: – Poihipi operated at full capacity (50 MW) – Ohaaki exceeded 60 MW: 7 new production wells, 2 re-injection wells, a numb
Slide 6: Ohaaki exemplifies Contact's focus on geothermal
Ohaaki exemplifies Contact’s focus on geothermal • Opened in late 80’s • Capacity: 108 MW • Steamfield decline and limited investment • Reduced to 21 MW by 2006 • Extensive drilling program • Now at 60 MW • Very attractive economics 6
Slide 7: Renaissance drivers
Renaissance drivers • Energy demand continues to increase • Maui • Climate change • Economics Fuel Type Key issues LRMC (c/kWh) Geothermal Base load, very low carbon intensity, 5–6 significant potential remains Wind Good resources, consenting challenges, 8.5 – 10 system volatility will need to be ma
Slide 8: NZES and Emissions Trading
NZES and Emissions Trading • The NZES sets out the future path for New Zealand’s energy sector – Target of 90% renewables by 2025 – Ambitious but achievable – A moratorium on new thermal power stations (?) • Emissions trading scheme appears durable – Cross party political support – Electricity price
Slide 9: Contact's geothermal expansion plans
Contact’s geothermal expansion plans • Currently generating at 265 MW • 470 MW of new capacity is in advanced stages of development – 225 MW Te Mihi project: After phasing out Wairakei – a net addition of 60 MW – 225 MW Tauhara project – 20 MW binary project at Centennial Drive using existing consen
Slide 10: The Wairakei – Tauhara System
The Wairakei – Tauhara System 10
Slide 11: Te Mihi Project
Te Mihi Project • Consent applications filed in July • Consents expected mid-2008 • 3 x 75 MW • Will use steam from current Wairakei consents • Re-injection will reduces discharges to river • Construction in two stages - first 2 units on line in 2011 11
Slide 12: Tauhara Project
Tauhara Project • Recent Tauhara appraisal wells have been very encouraging • Consent applications will be filed mid-2008 • 3 x 75 MW • On line in 2012 TH-12 vertical discharge 12 (433 t/hr at a well head pressure of 20.5 barg)
Slide 13: Centennial Drive Project
Centennial Drive Project • A new project for Contact • 20 MW binary plant • Will utilise existing consents • $75 million of investment • In operation by 2010 Wairakei’s binary plant - similar to that planned for Centennial Drive in 2009 13
Slide 14: Geothermal direct heat
Geothermal direct heat • Electricity generation is not the only opportunity - major scope for greater application of geothermal direct heat for industry • Contact’s 20 MW direct heat project at Tenon’s Taupo wood processing plant has been an environmental and economic success story • Replaced natura
Slide 15: Full steam ahead?
Full steam ahead? • The country needs low-carbon, base load and relatively inexpensive energy quickly • New Zealand’s significant geothermal resources are able to meet growth in demand • Companies are prepared to invest • What are the constraints? 15
Slide 16: The RMA, NZES and ETS
The RMA, NZES and ETS • Reconsenting of the existing Wairakei power station took more than 6 years and cost more than $10 million – If consenting delays now affect new geothermal developments, then new coal or gas plants will be needed to ensure security of supply and New Zealand will not come close
Slide 17: Reclaiming centre stage
Reclaiming centre stage • Maui clearly impacted NZ’s leadership position on the global geothermal stage • NZ’s geothermal renaissance is clearly underway – And has the potential to put NZ back in front • “After an initial surge, then a quiet period, geothermal energy is again at the forefront of com
Slide 18: Collaboration and capability
Collaboration and capability • A key question is how do we accomplish this? – Attracting people into the industry – Investment in capability – Advanced geothermal study and research – Supporting the NZ Geothermal Association Geothermal Institute Class of 1993 – Building the NZ Geothermal Institute –
Slide 19: Conclusion
Conclusion • Geothermal has never been more important to New Zealand’s future • The New Zealand Energy Strategy goals of a secure electricity supply with 90% renewables are highly dependent on significant and rapid develop of New Zealand’s geothermal resources • If consenting processes support this,
Slide 20: contact.
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