Power Station ‘Worth $90m’

By WATSON, Mike

A PROPOSED $500 million geothermal power station near Taupo could pump $90 million into the local economy, a special board considering the proposal has been told.

The board of inquiry, appointed by the environment minister, is considering Contact Energy’s resource-consent application to build Te Mihi power station on the Wairakei-Tauhara steamfield, 10 kilometres northwest of Taupo.

The application seeks resource consent to discharge steam into the air and geothermal fluid on to land, either by reinjection underground, or by irrigation.

Land-use consent is also being sought to build the power station, switchyard and new transmission lines.

Electricity generation from the existing Wairakei Power Station, built in 1958, would be phased out as Te Mihi came on stream.

Contact lawyer Trevor Robinson opened submissions on the proposal in Taupo yesterday.

Mr Robinson said economic consultants Concept Consulting had estimated the total flow-on economic benefit to the region would be $90 million.

The project would directly inject $50 million into Taupo’s economy, he said.

It is planned that the 220-megawatt power station will supply electricity to 70,000 homes and reduce greenhouse gas emissions by 330,000 tonnes of CO2 a year when fully operational in 2016.

Twenty-four submissions have been filed.

The four-member board of inquiry, chaired by Environment Court Judge Gordon Whiting, adjourned yesterday afternoon to read the evidence. It will reconvene next week to hear expert evidence and cross-examine the applicant.

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