Contact Energy has kicked off a $400 million equity raise to build a new 152 megawatt geothermal power station at Tauhara, near Taupō.
The company said it planned to raise $325m from an underwritten institutional placement at $7 a share - a 2.8 per cent discount to Friday's closing price - and a $75 million non-underwritten retail offer.
Trade in the company's shares have been put into a trading halt until Wednesday while it undertakes the placement.
At the same time, Contact reported a statutory first half profit of $78m, up 32 per cent on the same period last year.
EBITDAF increased by $25m to $246m, up 11 per cent on the prior year and in line with market expectations.
Operating free cash flow for the period increased from $120m to $157m in the first six months, up 31 per cent year-on-year.
Contact said it was a strong financial performance despite uncertainty of gas availability and the near-term future of major energy users.
The company announced a cash dividend of 14 cents per share, down from 16c in the previous corresponding period.
Contact said the $400m would support the $580m of further investment required to develop Tauhara.
The company also said it had undertaken a strategic review of thermal assets.
Chief Executive Mike Fuge told Mike Hosking the station will produce energy, but also plenty of jobs.
"it will add around five-hundred jobs at the peak of construction to the Taupo region and almost one-thousand jobs to the Waikato region."