Contributed by Mr Sean McLeod, Trade Executive, Power Infrastructure Division, SAPL

February 2022
New Zealand (NZ)

This past February marked 12 months into the Engineering, Procurement and Construction (EPC) contract between Sumitomo Corporation and NZ’s second largest electricity generator, Contact Energy to build the Tauhara geothermal power plant near Taupo in the central North Island of New Zealand.

Sumitomo has partnered with Japan’s Fuji Electric to undertake all the design and plant manufacture, delivery and installation.

Significant progress has been made on-site with the civil works around the Turbine Hall and Cooling Tower. All primary civil and mechanical design work for the generation process inside has now been completed.

Fuji Electric’s manufacturing of all primary generation plant (turbine, generator, condenser, and transformers) shall be ready for shipping to NZ over the next 4 months. The balance-of-plant from over 15 countries and 80 shipments shall arrive in NZ throughout the second half of 2022.

Whilst overall project schedule is currently on plan, COVID has and will continue to bring unprecedented challenges. The challenges have included regional lockdowns, material delays, international shipping chaos, ballooning labour and material costs, Omicron-enforced isolation of site staff and the inability of any Sumitomo Japan’s or Fuji Electric’s managers and engineers to even visit NZ. This may be one of SC’s first remotely Teams-managed, major construction projects.

On the positive side, Contact Energy has reconfirmed that production capacity shall increase 11% from initial estimates upto 168 MW. Sumitomo’s scope of works is valued over US$220 million. In addition to logistical, administrative and representation roles, Sumitomo Australia’s NZ office is the primary commercial facilitator and negotiator with the Owner, Advisors, and sub-Contractors.

The project is scheduled to be commissioned in mid 2023. Tauhara shall be SC’s third geothermal plant EPC in NZ over the past 15 years.