GENESIS ENERGY LIMITED — Capital/Financing Update 2021

Aug 11, 2021

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MARKET RELEASE

Date: 12 August 2021

NZX: GNE / ASX: GNE

Contact and Genesis announce long-term renewable electricity agreement

Contact Energy (NZX:CEN) is set to supply Genesis Energy with renewable electricity for 15 years from 2025, as part of a new, long-term power purchase agreement[1] after key terms were signed late yesterday.

The agreement will see Genesis take up to 62.5 megawatts of electricity, equating to 41% of the output capacity from Contact’s geothermal power station being developed at Tauhara. The 152-megawatt power station is under construction and expected to be completed in the middle of 2023.

Contact CEO, Mike Fuge, said the agreement with Genesis was a strong vote of confidence in the Tauhara project and aligned with both companies’ commitment to decarbonisation.

“It’s fantastic to see customer support for the country’s leading renewable development. These sort of longterm commitments, backed by the lowest cost projects, are good for New Zealand as they keep electricity prices as low as possible and encourage the development of new renewable generation.”

“It also demonstrates the importance of the Tauhara development’s role in helping reduce New Zealand’s emissions. The power station will operate 24/7, have low emissions and will not be reliant on the weather.”

Tauhara is expected to replace 1.3 terawatt hours of thermal generation from New Zealand’s electricity system, displacing 450,000 tonnes per year of carbon emissions.

Genesis CEO, Marc England, said the agreement is a result of the RFP process that the company has run to support its Future-gen strategy to displace 2,650GWh of baseload thermal generation by 2030.

“ This agreement with Contact will help us deliver on both our Future-gen strategic targets and our commitment to remove at least 1.2m tonnes of annual carbon emissions by 2025.

“We understand the role we have to play in the country’s transition to a low carbon future and we have further renewable opportunities to announce shortly .”

Mr Fuge said Contact had made no secret of its willingness to form long-term power purchase agreements. “It’s great to see the industry working to deliver low carbon solutions for electricity generation. We want to grow demand for our renewable electricity by displacing thermal generation and supporting new electricity demand, and there are a raft of opportunities to pursue on this front.”

The Contact/Genesis agreement will commence on 1 January 2025 and the financial details remain confidential.

ENDS

1 A power purchase agreement is a long-term contract where a customer purchases electricity directly from a generator of renewable energy, providing both buyer and seller with long-term price certainty.

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For investor relations enquiries, please contact: Tim McSweeney GM Investor Relations and Market Risk M: 027 200 5548

For media enquiries, please contact: Chris Mirams GM Communications and Media M: 027 246 1221

About Genesis Energy

Genesis Energy (NZX: GNE, ASX: GNE) is a diversified New Zealand energy company. Genesis sells electricity, reticulated natural gas and LPG through its retail brands of Genesis and Energy Online and is New Zealand’s largest energy retailer with approximately 500,000 customers. The Company generates electricity from a diverse portfolio of thermal and renewable generation assets located in different parts of the country. Genesis also has a 46% interest in the Kupe Joint Venture, which owns the Kupe Oil and Gas Field offshore of Taranaki, New Zealand. Genesis had revenue of $NZ2.6 billion during the 12 months ended 30 June 2020. More information can be found at www.genesisenergy.co.nz