Te Rapa power station closing in June 2023

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    Contact Energy (’Contact’) will close its 44-megawatt Te Rapa power station in June
    2023, reducing the company’s long-term scope 1 and 2 carbon emissions by 20 per
    cent per annum. 1
    The Te Rapa plant has been operating since 1999. It is a gas-fuelled cogeneration
    plant, providing steam and electricity to Fonterra's Te Rapa dairy factory, and directing
    surplus electricity back to the grid.
    The current agreement for Contact to supply Fonterra with electricity expires in June
    2023. Fonterra will acquire the plant’s auxiliary boiler and will continue to use these
    assets for its dairy operations beyond June next year, but the gas turbine used to
    generate electricity at Te Rapa will be retired.
    Contact has a team of 16 people at Te Rapa. CEO Mike Fuge said it had been an
    unsettling time, but it was good to be able to provide people with more certainty.
    “It is business as usual until June next year, and everybody in our team at Te Rapa
    will be looked after. After the power station closes, there will be some opportunities for
    people to move across to Fonterra’s Te Rapa team or be redeployed elsewhere within
    Mr Fuge said the closure of the Te Rapa power station next year aligned with Contact’s
    strategy to decarbonise New Zealand and decarbonise its own portfolio. “We are
    committed to ramping up our development portfolio to help meet the anticipated
    demand for renewable electricity, complemented by reducing our portfolio of thermal
    This will reduce Contact’s long-term scope 1 and 2 emissions by 20 per cent – or
    200,000 tons per annum.
    “The gap in generation created by the closure of Te Rapa next year will be replaced
    by new, renewable generation that is set to come on stream over the coming years,”
    Mr Fuge said.
    Currently 83 per cent of Contact’s electricity generation is renewable.


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