Te Mihi Geothermal Plant to be Completed by Year End (National Business Review)
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Contact Energy
CEO Dennis Barnes |
At a media briefing on the company's half-year earnings, Contact Energy chief executive Dennis Barnes elaborated on the delays to commissioning the 2X 83 MWe
Te Mihi geothermal plant, which was to have gone into production last year but is not expected to be at full steam until late this year after commissioning tests found hot well pumps were not appropriately engineered.
Under the fixed cost contract Contact has with its contractors at Te Mihi, the company would bear no extra cost and liquidated damages clauses would seek to compensate for lost production while the problem is fixed.
Meanwhile, Contact has taken $70 million off its forward projections for geothermal well-drilling because existing wells in the Wairakei steamfield are performing better than expected.
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