$200m power plant step closer

A $200 million geothermal project near Tikitere has cleared one hurdle but is still some way from getting started.

The Overseas Investment Office approved an application by Tikitere Limited Partnership to invest in the development of a geothermal power station near Tikitere in December. The partnership is a New Zealand subsidiary of American geothermal technology company Ormat Technology Limited and is working with three iwi trusts on the project.

Paehinahina Mourea Trust, the Manupirua Ahu Whenua Baths Trust and Tiki Tere Trust are collaborating as Tikitere Geothermal Power Limited in a transfer agreement that would be a first in New Zealand.

Under the agreement, Ormat would develop the site and run the 45MW power station, situated on 900ha between Lake Rotoiti and State Highway 30, transferring total ownership of the station to the trusts after 14 years.

Other iwi geothermal projects have involved partnerships with state-owned enterprises and, if the Tikitere project goes ahead, it could become the first power station owned and run exclusively by iwi.

None of the trust representatives contacted by The Daily Post were willing to comment on what the OIO approval means for the project or what the next step is for the partners. Several cited legal issues that needed to be settled before progress or comments could be made.

Rotorua District Council planning services manager Liam Dagg said no building or exploration consents for the project had been filed for the project to date.

According to the OIO decision summary, Ormat's Tikitere Limited Partnership has been approved to investigate a geothermal resource with a view to building and operating a geothermal power plant under a "build, operate and transfer" agreement.

The office found the application satisfied the criteria in Sections 16 and 18 of the Overseas Investment Act 2005, being of "substantial and identifiable benefit to New Zealand". Ormat has been working in the geothermal field for more than 40 years, developing environmentally friendly technologies, and designing, developing, building, owning and operating geothermal energy and recovered energy-based power plants around the world.

According to its website, the company has a strong focus on working with the community and supporting local development through job creation, education initiatives, development funds and volunteering.

"At our geothermal power plants, we train and employ local residents who join the Ormat team," it states. It also boasts work in education, promoting "green energy" sources and promoting science as a career option.