Contact extends partnership with NZ steel

18/08/2025 08:30 NZST, GENERAL

18 August 2025

Contact extends partnership with NZ Steel

Contact Energy (Contact) has entered into two new agreements with leading domestic steel manufacturer New Zealand Steel Limited (NZ Steel). These extend on the parties’ existing partnership at the Glenbrook steelworks and continue a shared path to the country’s renewable energy future.

The first, is a new 11-year, 50MW electricity supply agreement to begin in December 2025.1 The agreement will partly cover periods of higher production from NZ Steel’s new Electric Arc Furnace (EAF) due to be constructed and transmission connected during Q4 CY2025. The remainder will apply to residual demand at the Glenbrook steelworks.

The new supply agreement mirrors the innovative off-peak structure of the existing 30MW supply deal reached in 2023. This original 30MW agreement will also start in December 2025. Both exclude peak periods from March to September every year. This innovative solution has helped to enable the unlock of decarbonisation and provided NZ Steel with long-term renewable energy supply for the ongoing operation of its wider business. It also helps reduce demand from the energy system in peak winter periods.

In the second agreement, Contact has a signed a new 35-year option and lease arrangement for land adjacent to its existing 100MW Glenbrook-Ohurua battery site. This is another step in establishing NZ Steel’s Energy Hub at Glenbrook. The battery site is near the main demand centre of Auckland and is in close proximity to the national grid. This month Contact lodged a consent application which would take our total consented capacity up to 500MW at this site.

Contact is working towards an investment decision on a new 200MW battery in FY26. Once online this would take Contact’s operational battery capacity to 300MW. Contact’s existing, and planned, investment in batteries will reduce reliance on gas in peak periods.

“This is an excellent example of a major energy user and electricity generator working together to support the energy system in New Zealand,” said CEO Mr Mike Fuge.

“Long-term, flexible electricity supply solutions like these can work for a wide range of customers looking for reliable, renewable energy; all while supporting security of supply.”

Investor enquiries

Shelley Hollingsworth

Head of Corporate Finance (Acting)

+64 27 227 2429

investor.centre@contactenergy.co.nz

Media enquiries

Louise Wright

Head of Communications and Reputation

+64 21 840 313

media@contactenergy.co.nz

1 Sized at 15MW for the first 12 months.