ASX-listed Mercury is entering the second phase of the Turitea wind farm project in the city of Palmerston North.
Mercury (ASX:MCY) announced on Tuesday (November 12) that it has launched the second phase of the Turitea wind farm in New Zealand. The facility is set to be the largest wind farm in the country with 222 megawatts (MW) of wind power.
Located on the North Island, the second phase of the wind farm will cost AU$208 million for the construction of 27 wind turbines. Power generated from the site will charge 375,000 electric vehicles.
The first phase of the Turitea wind farm consisted of 33 wind turbines, valued at AU$256 million.
Mercury has a number of renewable energy projects in New Zealand, including sites focused on solar, hydro and geothermal energy. They account for 17 percent of the country's clean energy generation.
The second phase announcement for Turitea follows a landmark Zero Carbon Bill that was passed on Tuesday. The New Zealand government passed a national zero emissions by 2050 target that follows the guidelines set out in the 2015 Paris Agreement.
“Being able to complete the Turitea wind farm at its full scale contributes further to New Zealand's sustainable, low emissions future by making more renewable, kiwi-made electricity available for homes, businesses and vehicles throughout the country," said Fraser Whineray, CEO of Mercury, in a release.
Currently, wholesale electricity prices are expensive in New Zealand. The development of the Turitea wind farm will help drive prices downward.
“Renewable energy projects are about the very long term, and we believe the case is compelling for the completion of this leading North Island wind farm site, situated close to the national grid, supporting New Zealand demand into the future," said Whineray.
Shares of Mercury rose less than 1 percent on Tuesday following the announcement. Year-to-date, the company's share price has climbed over 29 percent.
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Securities Disclosure: I, Dorothy Neufeld, hold no direct investment interest in any company mentioned in this article.