Contact Energy (NZE:CEN, ASX:CEN) said it will invest NZ$712 million to build the 101-megawatt Te Mihi Stage 2 geothermal plant, part of its phased plan to replace the aging Wairakei power station, first built in the 1950s, according to a Wednesday filing with the Australian and New Zealand bourses.

The new facility is expected to be online by Q3 2027 and is projected to generate 0.2 terawatt hours annually from 2028 to 2031, boosting output from the Wairakei steam field.

The company also disclosed a NZ$74 million extension for the Wairakei plant, delaying full closure until mid-2031, when the site's operating consent expires. At that point, the Te Mihi Stage 3 project, pending final approval, could further replace Wairakei's capacity.

US-based Ormat will handle the engineering, procurement, and construction of Te Mihi Stage 2, with Contact Energy highlighting the plant's low emissions and its strategy to ensure sustainable generation.

Price (AUD): $8.47, Change: $-0.01, Percent Change: -0.12%