Tauhara II - ELT Presentation 27July10

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28 July 2010

Tauhara II Geothermal Development ProjectPresentation to Enterprise Lake TaupoCraig Stephenson Environment and Land Manager


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Contact Energy Limited

Content

Contact who we are

How geothermal worksTauhara II project

28 July 2010 Tauhara II 2


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Contact who we are

Contact is New Zealands largest private electricity operator we are not ownedby the Government

We are owned by: Origin Energy (Australia) 51% 80,000 individual New Zealand shareholders; more New Zealanders have shares

in Contact than in any other company.Some of our leaders (most of them New Zealanders):

Whaimutu Dewes Director David Baldwin Managing Director Graham Cockroft Chief Operating Officer

James Kilty Project Director, Renewables Ulrich Biesenbach, GM - Geothermal

We directly employ over 1000 people throughout New Zealand



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Our values guide our behaviour the way we treat each other andour stakeholders First - being an intelligent and responsible leader Fresh - we dare to be different

United - working together to a common goal Open - building open and enduring relationships

Be the neighbour you want

We are passionate about our role in securing a sustainable future for New Zealand


Contact our values


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Contact Energy Limited 27 July 2010 Tauhara II 5

A quick overview of Contacts operations

5


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Contact Energy Limited 27 July 2010 Maximising the Benefits of Geothermal Development 66

The security of supply benefits

Geothermal is critical to ensuring New Zealands security of supply; both meetingdemand growth and facilitating the retirement of old thermal plant

Vital in replacing the 1,000 megawatts of coal-fired generation at Huntly withrenewable, baseload energy

NZ Electricity Supply Mean Demand Profile

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

2 0 0 9

2 0 1 0

2 0 1 1

2 0 1 2

2 0 1 3

2 0 1 4

2 0 1 5

2 0 1 6

2 0 1 7

2 0 1 8

2 0 1 9

2 0 2 0

2 0 2 1

2 0 2 2

2 0 2 3

2 0 2 4

2 0 2 5

M W

Geothermal Hydro Gas Coal Wind New Generation Demand


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Geothermal is New Zealands most cost effective fuel type

Entry Limit Price

0204060

80100120140160

180

C C G

T a t

$ 7 . 1 0 / G J

G a s

C C G T a t

$ 1 5 / G J

G a s

C o a l

@

$ 5 . 3 0 / G J

W

i n d

R a n g e

H y d r o

R a n g e

G e o

t h e r m a l

R a n g e

$ / M W h

Base Range $25/t Carbon $50/t Carbon

Source: Contact


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Contacts operations and projects an overview


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How Geothermal Works


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Typical Wellpad

WellheadsBranch LineFlash Tankor Silencer

Cross Country Line Separator Station

14

Sump


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Tauhara II Project Overview


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TAUHARA II: The Project and the Resource

The project comprises; 250 MW Power station Steamfield Transmission

connectionLocated on the Wairakei-Tauhara GeothermalSystem (magenta line)Consent application areais shown by the lighterblue line


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Contact Energy Limited 18

Proposed Development Layout


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Contact Energy Limited 28 July, 2010 23

Tauhara Geothermal Resource

Tauhara field area Resource

Size Sustainability Effects and adaptive management

The Tauhara II project is sustainable modelled out to 2060.


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Tauhara is a large geothermal field

Tauhara - 50 km 2

Twice the area of Wairakei or

Rotokawa Wairakei 25 km 2

Rotokawa 20 km 2


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New Geological Information - Drilling


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Underground Resource Production and discharge strategies


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Subsidence

Intensive research project conducted over last four years Drilling, cores, physical testing, modelling

Better understanding of subsidence mechanisms and how to avoid. The avoidance of subsidence effects is the primary requirement for

Contact in managing the Tauhara Geothermal Field. Extensive subsidence monitoring. Pressure monitoring in geothermal field.

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Subsidence Damage Remediation

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The ambulance at thebottom of the cliff is a

subsidence damageremediationrequirement inContacts consents all

property damage withindefined subsidencebowls is Contactsresponsibility to fix.


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Contact Energy Limited 28 July 2010 Document title 30


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Questions?

28 July 2010 Document title 31


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Extra slides if needed

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Well Drilling covering much greater

Aerial Extent Depth


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Shallow Materials Properties

Extensive coring and materialstesting has been conducted over

the last three years

Professor Mick Pender fromAuckland University constructedspecialist testing equipment

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Models Developed

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3D Reservoir Simulation

Wairakei model developed

Subsidence Models 3D coupled to reservoir simulator

1D concept confirmation


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Sustainability of the resource

1. Multiple model scenarios have been run out to 20602. Long term sustained performance from the resource can be achieved

beyond 20603. Best achieved including development in South Tauhara

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Subsidence

1. Substantial increase in subsurfacedata and knowledge; recovered andtested ~ 4 km of core material andmeasured pressures/temperatureswithin and outside the subsidencebowls

2. Inside the Tauhara bowls, materialat various depths (up to 400m), isanomalously compressible and ofsufficient thickness to explain the

location and amplitude of thesubsidence bowls

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Adaptive management

1. Adaptive approach enables sound management of effects

2. Requires flexibility to be effective

3. With Tauhara II, Contact will have infrastructure and fluids available toimplement adaptive management

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Tauhara II - ELT Presentation 27July10

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Transcript of Tauhara II - ELT Presentation 27July10