Contact enters gas tolling agreement
24 March 2021
Contact and Nova agreement increases
efficiency of thermal generation
Contact Energy (“Contact”) has entered a gas tolling arrangement with Nova Energy (“Nova”).
Under the agreement, Contact will purchase 3.6PJ of gas at market prices and sell back a
similar volume of electricity that Nova would have otherwise generated through their own
peaking plant.
Contact CEO Mike Fuge said: ”This arrangement will help support the operation of our efficient
Taranaki Combined Cycle plant during winter 2021, particularly during the upcoming outages
at Genesis’ Huntly 5 Combined Cycle Gas Turbine in April.”
Mr Fuge said that although this was not new gas to the electricity market, this agreement
allows gas to be directed to the most efficient electricity generating plant in a period of
reduced gas availability and low hydro inflows. “These arrangements mean we can deliver
more electricity from the same energy, effectively reducing the carbon intensity of the
renewable firming thermal generation fleet. We’re delighted to have worked constructively
with Nova Energy once again to deliver an efficient market response.”
-ends-
Investor enquiries
Matthew Forbes
Ph +64 21 072 8578
Media enquiries
Paul Ford
Ph 021 809 589
paul.ford@contactenergy.co.nz
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