1 00:00:00,000 --> 00:00:02,200 Speaker 1: So the business empowering this country and keeping the lights on, 2 00:00:02,279 --> 00:00:04,560 Speaker 1: the government has announces fifty million dollars in new funding 3 00:00:04,559 --> 00:00:06,320 Speaker 1: the boost Geothermal Now. The aim is to cut the 4 00:00:06,400 --> 00:00:09,080 Speaker 1: upfront risk and look to double generation by twenty forty. 5 00:00:09,119 --> 00:00:12,120 Speaker 1: Mic Foosias, the Contact Energy CEO, and is back. Well 6 00:00:12,119 --> 00:00:13,360 Speaker 1: this Mike, very good morning to you. 7 00:00:14,040 --> 00:00:15,680 Speaker 2: Good morning, Michael, So I'm well. 8 00:00:15,520 --> 00:00:17,720 Speaker 1: Indeed, thank you. So you're in. You've got a couple 9 00:00:18,239 --> 00:00:21,640 Speaker 1: underway or a couple of geothermal projects underway and more 10 00:00:21,720 --> 00:00:24,000 Speaker 1: being built. Do you need the government? 11 00:00:25,760 --> 00:00:28,960 Speaker 2: We don't need the government. We have a fantastic pipeline 12 00:00:29,080 --> 00:00:33,800 Speaker 2: of thermal projects in front of us. This funding appears 13 00:00:33,800 --> 00:00:39,080 Speaker 2: more directed towards areas where they can't get it off 14 00:00:39,080 --> 00:00:41,800 Speaker 2: the ground or research. They feel it's more research. So 15 00:00:41,840 --> 00:00:43,839 Speaker 2: there's a bit of a grant to walk from university 16 00:00:43,840 --> 00:00:44,440 Speaker 2: there as well. 17 00:00:44,560 --> 00:00:45,560 Speaker 1: Do you see the value in it? 18 00:00:47,120 --> 00:00:51,880 Speaker 2: Look any additional knowledge or additional investment in geo thermal 19 00:00:52,159 --> 00:00:55,640 Speaker 2: and helping our understanding. We are a world leader in 20 00:00:55,680 --> 00:00:59,960 Speaker 2: geothermal and if we can maintain that edge through recent 21 00:01:00,040 --> 00:01:04,200 Speaker 2: search and understanding, particularly what's going on in the Central 22 00:01:04,200 --> 00:01:05,920 Speaker 2: Plateau there, that's always a good thing. 23 00:01:06,120 --> 00:01:08,600 Speaker 1: How bullish are you on it versus any other form 24 00:01:08,600 --> 00:01:09,200 Speaker 1: of generation. 25 00:01:10,560 --> 00:01:14,000 Speaker 2: Oh, look, we're very bullish on geo thermal. We wouldn't 26 00:01:14,080 --> 00:01:16,920 Speaker 2: have put the best part of two billion dollars down 27 00:01:16,959 --> 00:01:19,440 Speaker 2: in the last four years, and we've got a really 28 00:01:19,480 --> 00:01:23,399 Speaker 2: significant pipeline ahead of us still to go. We've built 29 00:01:23,440 --> 00:01:26,720 Speaker 2: two hundred and twenty five megawatts, we can see another 30 00:01:26,800 --> 00:01:29,759 Speaker 2: three hundred and three fifty coming down. So we're very 31 00:01:29,760 --> 00:01:33,000 Speaker 2: bullish on it. But the trick with geo thermal is 32 00:01:33,160 --> 00:01:35,560 Speaker 2: you also have to be patient, you have to be scientific. 33 00:01:36,000 --> 00:01:39,199 Speaker 2: You can't overextract. One of the biggest risks of being 34 00:01:39,240 --> 00:01:42,759 Speaker 2: too enthusiastic and over extracting, and so that's the way 35 00:01:42,800 --> 00:01:45,760 Speaker 2: we do it, just step by step building up the 36 00:01:45,840 --> 00:01:48,280 Speaker 2: knowledge base. But we've got a fantastic group of scientists 37 00:01:48,320 --> 00:01:51,560 Speaker 2: in New Zealand and engineers who now understand it really well. 38 00:01:51,760 --> 00:01:53,800 Speaker 1: Where does it end up as a percentage of what 39 00:01:53,920 --> 00:01:54,520 Speaker 1: we make. 40 00:01:56,360 --> 00:01:59,440 Speaker 2: It depends how big the market gets. On the other side, 41 00:01:59,520 --> 00:02:02,200 Speaker 2: we're very excited. Look, New Zealand's now at ninety six 42 00:02:02,200 --> 00:02:05,560 Speaker 2: to ninety eight percent renewable. We're very excited about what 43 00:02:05,720 --> 00:02:08,800 Speaker 2: new industries we could attract to this country. So geothermal 44 00:02:08,919 --> 00:02:12,160 Speaker 2: now will be the base load forever for this nation, 45 00:02:13,080 --> 00:02:14,960 Speaker 2: which is a great thing. Whether it ends up at 46 00:02:14,960 --> 00:02:18,120 Speaker 2: twenty five thirty percent depends how much we as a 47 00:02:18,200 --> 00:02:23,040 Speaker 2: nation can now grow that electricity market to supply new 48 00:02:23,080 --> 00:02:25,720 Speaker 2: industries and attract new investment gets in New Zealand. And 49 00:02:25,760 --> 00:02:27,519 Speaker 2: that's what we're getting excited about it. 50 00:02:27,600 --> 00:02:29,640 Speaker 1: Well, that's good because it's ironic because I've read super 51 00:02:29,720 --> 00:02:32,040 Speaker 1: articles about that data center in Southland and the only 52 00:02:32,160 --> 00:02:34,720 Speaker 1: articles were about how they were going to suckers all 53 00:02:34,760 --> 00:02:36,840 Speaker 1: drive from power, And I thought, we wanted to be 54 00:02:36,919 --> 00:02:38,679 Speaker 1: a data center host. And if we want to be 55 00:02:38,720 --> 00:02:40,200 Speaker 1: a data center host, we've got to have the power, 56 00:02:40,240 --> 00:02:40,560 Speaker 1: don't we. 57 00:02:41,360 --> 00:02:44,280 Speaker 2: Yes, data centers is one, but we can also seed 58 00:02:44,400 --> 00:02:48,320 Speaker 2: expansion of food processing. We can see potential expansion of 59 00:02:48,760 --> 00:02:54,040 Speaker 2: the smelter. They're a whole range of industries, including data centers, 60 00:02:54,400 --> 00:02:59,160 Speaker 2: and they also are an exciting, exciting opportunity for New 61 00:02:59,280 --> 00:03:02,239 Speaker 2: Zealand as well, because remember our market's forty two to 62 00:03:02,240 --> 00:03:07,600 Speaker 2: tirawa hours conventional renewables alone, there is fifty tira what 63 00:03:07,840 --> 00:03:10,680 Speaker 2: hours of development. We could build the New Villan electricity 64 00:03:10,720 --> 00:03:16,440 Speaker 2: system again and still have plenty of electricity available for homes. 65 00:03:16,480 --> 00:03:18,520 Speaker 2: But also industries and employment. 66 00:03:19,160 --> 00:03:21,040 Speaker 1: Good stuff, Mike, always good to catch up. Appreciate it 67 00:03:21,120 --> 00:03:22,919 Speaker 1: very much, my foish. I'm getting more and more interested 68 00:03:22,919 --> 00:03:24,440 Speaker 1: in the power general. Mainly. It must have been the 69 00:03:24,440 --> 00:03:26,720 Speaker 1: winter of twenty four when I went nuts over the 70 00:03:26,720 --> 00:03:28,280 Speaker 1: fact we couldn't do the lights on, and I thought 71 00:03:28,520 --> 00:03:30,200 Speaker 1: we need to know a bit about more of this, 72 00:03:30,440 --> 00:03:31,400 Speaker 1: a bit more about this. 73 00:03:31,919 --> 00:03:34,840 Speaker 2: For more from the Mic Asking Breakfast, listen live to 74 00:03:34,960 --> 00:03:38,000 Speaker 2: news talks that'd be from six am weekdays, or follow 75 00:03:38,040 --> 00:03:39,560 Speaker 2: the podcast on iHeartRadio.