Contact Energy is facing commissioning issues at its Tauhara geothermal development, including problems with steam-field valves and liquid handling systems, as well as a steam hammer event.

As a result, the company will need to make design modifications to the steam separation plant, which will impact the previously communicated commissioning timeline.

The plant is now expected to be online in Q3 2024, rather than Q1 2024, and will initially operate at a capacity of 152MW before reaching the planned output of 174MW after further optimization and modifications.

The CEO acknowledges the challenges but remains confident in the project's long-term success.

The delay will not affect Contact Energy's financial guidance for FY24, and the project is expected to have a low levelized cost of electricity.

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