Ormat Technologies has secured a contract for the development of the 101MW Te Mihi Stage 2 geothermal power plant in New Zealand.
The engineering, procurement, and construction (EPC) agreement with Contact Energy is valued at approximately $200m and follows approval from Contact Energy's board.
The Te Mihi Stage 2 project is anticipated to be operational by mid-2027.
This marks Ormat's fourth significant project in the country, which will gradually replace the Wairakei geothermal power station, originally built in the 1950s.
Ormat's expertise in binary technology, which is well-suited for high enthalpy geothermal reservoirs, is a key factor in this agreement.
Pending a final investment decision, Contact Energy is also considering a subsequent phase, Te Mihi Stage 3.
This third-phase expansion, if enacted, is projected to be completed by mid-2031, further augmenting New Zealand's geothermal energy capacity.
Ormat Technologies CEO Doron Blachar said: “We are thrilled to partner with Contact Energy on this landmark geothermal project. The Te Mihi Stage 2 project is a testament to Ormat’s commitment to delivering cutting-edge geothermal solutions that drive the transition to clean energy.
“We expect that our year-end Product Segment backlog, once the contract is signed, will exceed $300m and we will recognise the bulk of the revenues associated with this contract during 2026 and 2027.
“The 101MW Te Mihi Stage 2 plant, along with the additional 160MW we are currently building in New Zealand, strengthens our position as market leader while also expanding New Zealand’s renewable energy capacity to support the country’s ambitious goal of achieving zero emissions.”
