AWARDS FINALIST: Eastland Generation – Showcase for shared success: TOPP2 geothermal power plant project
Iwi-developer partnerships that share risks and returns provide real opportunities for expanding New Zealand's renewable energy resources, says Eastland Generation.
It's an approach the firm is using in its newest geothermal power plant, the 49MW TOPP2.
Located on the Kawerau reservoir, TOPP2 is owned and operated by Eastland Generation on land leased from Ngāti Tūwharetoa Holdings.
The project was developed together with Tūwharetoa mai Kawerau ki te Tai-owned Ngāti Tūwharetoa Geothermal Assets (NTGA), which is providing a long-term supply of geothermal fluid to the station.
Trust
Eastland says the two organisations placed significant trust in each other to deliver on TOPP2's infrastructure and to maintain it for the long-term.
This commercial relationship is built on shared goals, substantial mutual investment and risk-mitigating innovations. The model is unique in New Zealand, it says.
It means Eastland is able to concentrate on operating the plant to maximise performance efficiency, and leveraging the returns for further renewable energy developments, and it enables Tūwharetoa mai Kawerau ki te Tai to exercise kaitiakitanga over the geothermal reservoir in Kawerau and deliver multi-generational value for its people.
TOPP2 is a finalist in the energy project of the year category at this year's New Zealand Energy Excellence Awards.
The project reached final investment decision in April 2023, with site possession in August that year so Eastland could begin earthworks for the station pad.
In December 2025, the completed plant was synchronised to the national grid for the first time.
While the power station uses generation technology that is well established in Aotearoa's geothermal energy industry, the project's innovations include the partnership approach, fuel agreements, funding structure, transmission connection approach, offtake structure and engagement with the local community.
The collaborative model, with Eastland and NTGA each responsible for their areas of expertise, de-risked the project from the start, Eastland says.
With resource consents already secured and fuel to be supplied by NTGA, timelines were not dependent on drilling geothermal wells. This saved an estimated 36 months on the project development.
Funding
Eastland's strong existing relationships with lead contractor Ormat Technologies enabled the technical specifications and design development to proceed quickly.
An innovative funding structure for the project further de-risked the project. This meant Eastland did not have the pressure of signing users up to power purchase agreements ahead of construction.
Eastland also made use of Transpower's customer-led approach to the design, procurement and construction of the 220 kilovolt connection at the Kawerau substation. While this approach did challenge both parties, it accelerated the build and allowed Eastland to have the commercial relationship with suppliers and contractors.
A key part of the project is the ability to capture carbon dioxide and re-inject it into the reservoir as part of the injection fluids.
Other New Zealand plants use this technology and Ormat included the capture of the non-condensable gases in the design and construction of TOPP2. For the steam supply, NTGA engaged specialists to design the system to combine the NCGs with the injection fluids.
The company says it is also making a positive contribution as a local employer. During the TOPP2 build, Eastland Generation added 12 permanent fulltime-equivalent members to its staff.
Bay of Plenty subcontractors were used on the TOPP2 build, specifically in supporting electrical and engineering roles.
Today, TOPP2 is generating enough renewable energy to power 55,000 homes. Eastland Generation's overall operating capacity is now 118MW.
The annual Energy Excellence Awards will be held in Wellington on 19 August. The Energy Project of the Year Award is sponsored by China Construction Bank (New Zealand).