The electricity producer said that the new investment, along with the Tauhara geothermal power station will collectively increase the country's total renewable electricity supply by over 5% on average per year and the company's by 25% from the current levels.
It said it was witnessing further demand growth potential with more proposed heat conversion projects in industry, supporting the company's rapid investment into its renewable projects.
"While COVID-19 has had an impact on the project’s progress and cost, we continue to assess all options to deliver more output and reinforce returns," said Mike Fuge, chief executive officer of Contact.
Contact also signed a electricity "swaption" contract with power firm Meridian Energy for 2023 and 2024 as part of its strategy to lower New Zealand’s carbon emissions, it said on Monday.
The company posted a net profit of NZ$182 million ($117.26 million) for the fiscal 2022, down 3% from last year and declared a final dividend of 21 New Zealand cents per share.
($1 = 1.5521 New Zealand dollars)
