The Nga Awa Purua Geothermal Project, Rotokawa, New Zealand

Abstract

Maori have a key role in many New Zealand geothermal projects through their ownership of land that provides access to some of the best geothermal resources in the World. They have chosen a variety of project ownership models for engagement in projects on their resources that range from receipt of royalties for hosting a power developer to almost full Maori project development and ownership. While a high level of Maori ownership in the power development on their resource is seen as desirable by many, this is tempered by the realities of raising risk capital for resource drilling, needing technical capability for managing drilling and power plant specification/contracting, the need for a reliable operator through the life of the project and the need for suitable power off-take arrangements.
In seeking to secure a long term revenue stream for the benefit of their people, the Tauhara North No.2 Trust which controls access to the Rotokawa geothermal resource have established a joint venture arrangement with the major generation company Mighty River Power for the construction of the World’s largest single unit geothermal generation project – the Nga Awa Purua 130 MW project due for completion in 2010. The agreed structure has provided the Trust with the opportunity, from a low capital base, to raise their own finance for buying into the project to agreed levels. It also provides Mighty River Power, who will have a majority ownership of the plant, with the ability to develop and operate the project in partnership with the Trust as resource owner who, through joint ownership, has closely aligned commercial objectives from the power project. Such ownership structures may be applicable elsewhere, facilitating development of geothermal resources while ensuring alignment of goals and a fair return for the benefit of indigenous geothermal resource owners or communities that provide access to the resources.