Contact Energy Limited · NZX:CEN
Contact Energy — Corporate Update (July 2015)
19 slides from Contact Energy's corporate update, Jul 28, 2015
Slide 1: Taranaki site tour
Taranaki site tour 28 July 2015 James Kilty, Chief Generation and Development Officer Peter Kane, General Manager Operations 1 Fraser Gardiner, Head of Investor Relations and Strategy
Slide 2: Cautionary statement
Cautionary statement This presentation may contain projections or forward-looking statements regarding a variety of items. Such forward-looking statements are based upon current expectations and involve risks and uncertainties. Actual results may differ materially from those stated in any forward-lo
Slide 3: Today’s presentation
Today’s presentation • Welcome James Kilty • Safety briefing Paul Fougere - Head of Generation Taranaki • Thermal update Fraser Gardiner • Operational overview Peter Kane 3 Taranaki site tour 28 July 2015
Slide 4: Stay Safe Mate
Stay Safe Mate
Slide 5: Renewable generation investment has lowered Contact’s cost of energy
The investment in renewable generation has lowered Contact’s cost of energy and requires limited ongoing capital expenditure Generation mix Capital expenditure 100% 700 600 80% 500 % generation (GWh) 60% 400 $m 300 40% 200 20% 100 0% - FY12 FY13 FY14 FY15 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16
Slide 6: Thermal assets role is changing to hydrology risk management and optionality
Thermal assets role is changing from baseload operation to providing hydrology risk management and optionality Contracted gas volumes • Extension to gas supply agreement 35 Peak take or pay OMV (take-or-pay) completed with Maui Developments was 52 PJ in CY10 Maui (max) Limited 30 Maui (min) Swap » 2
Slide 7: Renewables with gas storage and peakers can support a retail business of around 7.1 TWh
Contact’s low cost renewable business combined with gas storage and peakers can support a retail business of around 7.1 TWh Generation and load profile 1,600 1,400 1,200 1,000 MW 800 600 400 200 0 Apr Mar Nov Dec Jan Jun Aug Sep Jul Oct May Feb Whirinaki Peakers Hydro (50th percentile inf lows) TeRa
Slide 8: The role of Ahuroa gas storage is developing
The role of Ahuroa gas storage is developing, adding value to the thermal operations FY15 gas injections and extractions 1000 2,000 • Initial investment (excl Cap interest) $197m Monthly injections Monthly extractions YTD injections YTD extractions » Assets $111m 800 1,600 » Gas rights $35m Monthly
Slide 9: Role of large thermal plants in New Zealand likely to reduce over time
The role of large thermal plants in New Zealand is likely to reduce over time, with Contact well positioned to support flexible development when it is needed • Stratford » Up to 400 MW of new peaking or CCGT operation consented • Otahuhu » Up to 400 MW of new CCGT capacity consented; consents to ope
Slide 10: Thermal operations – Peter Kane
Thermal operations – Peter Kane 10
Slide 11: Gas turbine: The Brayton Cycle
Gas turbine: The Brayton Cycle Typical efficiency: 33% - 45% Air inlet Compressor blades Fuel in Stator blades Turbine blades 11 Taranaki site tour 28 July 2015
Slide 12: Steam turbine – The Rankin Cycle
Steam turbine – The Rankin Cycle Typical efficiency: 33 – 38% 12 Taranaki site tour 28 July 2015
Slide 13: Combined Cycle
Combined Cycle Typical efficiency: 55% - 60% 13 Taranaki site tour 28 July 2015
Slide 14: LMS 100 gas-fired peakers
LMS 100 gas-fired peakers VBV Silencer Cooling Tower Air Intake Air-to-water Intercooler Gas Turbine Auxiliary Skid Generator Exhaust Stack 14 Taranaki site tour 28 July 2015
Slide 15: Ahuroa gas storage facility
Ahuroa gas storage facility 15 Taranaki site tour 28 July 2015
Slide 16: AGS provides Contact with up to 17 PJ of gas storage capacity
AGS provides Contact with up to 17 PJ of gas storage capacity • ~17 PJ max working volume • 11.3 PJ working volume as at 30 June 2015 • Connected to Stratford power stations by 2 pipelines • Operated by NZEC (from Waihapa Production Station) • Max reservoir pressure 3,450 psi • 45TJ/day extraction r
Slide 17: AGS is connected to the Stratford power stations by two pipelines
AGS is connected to the Stratford power stations by two pipelines • Bypass pipeline completed 2013 Permit 52278 Ahuroa » 8.7km, 450mm diameter pipeline Well-site between Ahuroa and Stratford » Purpose to bypass Waihapa Production Station to eliminate costs, and allow for Piakau storage development o
Slide 18: OSIP programme – redefining process safety
OSIP programme – redefining process safety 18 Taranaki site tour 28 July 2015
Slide 19: Bow tie diagrams are used to visualise the hazard being assessed
Bow tie diagrams are used to visualise the hazard being assessed 19 Taranaki site tour 28 July 2015