The utility will build the plant on the Ngatamariki geothermal steam field, 17km northeast of Taupo.

The project, which won consent in May 2010, is MRP's third geothermal project in three years and will boost the company’s capacity from the renewable source to 460MW.

The utility brought the 90MW Kawerau plant into production in 2008 and the 140MW Nga Awa Purua station online last year.

Ngatamariki