Mercury NZ Limited has signed a long-term agreement with New Zealand Aluminium Smelters, saying it is a significant stepping stone for further renewables development. The agreement will take effect from Jan 2025 for a period of up to 20 years, with baseload volume stepping up from 50MW to 75MW in 2027. Additional details on Mercury-NZAS CFD: A CFD is a long-term financial agreement between an electricity generator and buyer for a pre-agreed price.

Pricing is equivalent to firmed renewables, however exact terms are confidential. There are no restrictions on NZAS ability to on-sell any volume under the CFD and NZAS has a right to terminate (based on an annual termination cost) with 24 months' notice no earlier than 2035. The agreement has been approved by the Electricity Authority under the `materially large contract' restrictions in the Electricity Industry Participation Code.

It is conditional on administrative and regulatory matters being completed.