Ann: GENERAL: MRP: CONSTRUCTION OF NGATAMARIKI GE

• Release Date: 08/05/12 13:07
• Summary: GENERAL: MRP: CONSTRUCTION OF NGATAMARIKI GEOTHERMAL PLANT GAINS MOMENTUM
• Price Sensitive: No
• Download Document  4.15KB

					

MRP
08/05/2012 11:07
GENERAL

REL: 1107 HRS Mighty River Power Limited

GENERAL: MRP: CONSTRUCTION OF NGATAMARIKI GEOTHERMAL PLANT GAINS MOMENTUM

The arrival of a major shipment to Mighty River Power's Ngatamariki
geothermal development over the last week marked a significant milestone in
the construction of the Company's 82MW plant.

The shipment of the towers for the air cooling system, from international
geothermal technology supplier ORMAT, weighed more than 2,000 tonnes and
arrived in New Zealand at the Port of Tauranga. Approximately 90 truckloads
of equipment were delivered on site over the last week. The cooling system is
made up of four structures that, at approximately 15 meters high and 300
meters in combined length, represent a significant physical aspect to the
plant.

Mighty River Power's General Manager Development, Mark Trigg, said delivery
of the shipment was an important milestone in the construction of the plant
and would enable future works to continue on the original construction
schedule. The cooling system plays an integral role in the operations of the
plant.
"It's great to see the progress on site.  The foundations for the cooling
towers are almost complete and very soon we'll be able to see the station
really begin to take shape.  We remain on schedule for completion and
commissioning in mid 2013," said Mr Trigg.

The Ngatamariki plant, the third major geothermal power station constructed
by the Company over the past 5 years, will provide additional renewable base
load capacity and further diversify the Company's generation portfolio.
Mr Trigg said the plant would complement the Company's core hydro base,
lifting Mighty River Power's geothermal energy production (measured on
ownership interests) from over 30% to approximately 40% of the Company's
generation output, and taking total geothermal capacity under its operation
above 460MW.

The development, which follows the commissioning of Kawerau (2008) and Nga
Awa Purua (2010), will be 100% owned by Mighty River Power, although Tauhara
North No.2 Trust - which was a joint participant in securing the resource
consents - would receive a revenue stream from the project and has an option
to take an equity stake in the plant at market value no earlier than 10 years
after final commissioning.

ENDS

Notes to Editors:

o The Ngatamariki geothermal steam field is located 17kms north-east of Taupo

o The project cost of NZ$466 million is financed from the Company's balance
sheet. In mid 2011, the Company secured $250 million additional debt
facilities to supplement existing debt capacity

o ORMAT was awarded the Ngatamariki project under an EPC (Engineering,
Procurement and Construction) arrangement. As a turn-key contract, this
significantly reduces construction risk of the power plant  to Mighty River
Power. Responsibility for steamfield work remains with the Company.

o ORMAT's modular design for the development allows four generation units to
be built in its first phase, with infrastructure capacity sufficient to allow
for further units to be added in the future

About Mighty River Power

Mighty River Power is an integrated electricity generator and retailer, and
New Zealand's only large renewables dominated energy company with both hydro
and geothermal generation. Our core business is based on reliable, low fuel
cost generation, complemented by electricity sales to businesses and homes
through multiple retail brands.

The Company's sales to major industrial and commercial users and through our
retail brands, Mercury Energy, GLO-BUG, Bosco Connect and Tiny Mighty Power,
account for about 18% of New Zealand's total electricity consumption.

More than 90% of our generation is from renewable sources, with a substantial
geothermal share, supported by a flexible gas-fired plant in Auckland. Mighty
River Power is among the world's top 10 geothermal businesses and is
investing through GeoGlobal Energy in geothermal developments in the US,
Chile and Germany.

Mighty River Power won Overall Energy Company and Project of the Year at the
2010 Deloitte Energy Excellence Awards and in 2011 was named Energy Retailer
of the Year (Mercury Energy).
End CA:00222624 For:MRP    Type:GENERAL    Time:2012-05-08 11:07:58