Rio Tinto, a leading mining group, reportedly acquired approval for wind farm expansion within a week of signing a groundbreaking electricity deal to power its New Zealand Tiwai Point aluminium smelter.
On Thursday, June 6, the New Zealand-listed energy company Mercury said it would start working on expanding Kaiwera Downs wind farm near Gore on the South Island at a cost of $486 million. After expansion, the wind farm's total capacity will grow to 198 MW, becoming the second largest in New Zealand. The wind farm will then be able to generate enough electricity to power the equivalent of around 73,000 tonnes per year.
The Tiwai Point aluminium smelter's total need for 572 megawatts (MW) of power would be met by several electricity generators including Meridian Energy, Contact Energy, Mercury NZ, and a mix of South Island renewables.
A week ago, New Zealand Aluminium Smelters (NZAS) entered into a 20-year renewable energy contract with the aforementioned electricity generators to meet the power needs and secure the future.
The smelter's survival was under threat until this contract because of the soaring costs of fossil-fuelled electricity.
The expansion of Kaiwera Downs wind farm is expected to start in June 2024 and reach full operations by the end of the calendar year 2026.
Mercury's executive general manager of portfolio, Phil Gibson, said: "We're committed to playing our part, and increasing New Zealand's renewables is a key way we can contribute. New Zealand's future is brighter because of the role of renewables, and we're keen to see more renewable generation projects delivered at the scale and pace required to meet New Zealand's climate change goals."
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