Mighty River to construct New Zealand geothermal plant

Mighty River Power will construct a geothermal plant  in north of Taupo, New Zealand.

Worth NZ$466 million or US$381.55 million, the plant will be built at the Ngatamariki geothermal steam field 17km north-east of Taupo, and is expected to have an initial capacity of 82MW.

The plant will be wholly owned by Mighty River Power, while Tauara North No2 Trust is entitled to receive a revenue stream and has an option to take an equity stake in the plant in the future at market value.

The company has engaged ORMAT to provide engineering, procurement and construction services on a turnkey basis, and Iceland Drilling Company for two years to provide a drilling rig.

Mighty River has arranged for $250m additional debt facilities to fund construction costs.

Construction of the plant is scheduled to begin this July and the plant is expected to commence full operations by mid-2013.