Solid Energy general manager of lignite conversion Greg Visser said the $29 million project was on schedule.
"The structural installation of the main process tower is finished and we aim to have all installation of major coal processing equipment completed this month.
"The briquetter and compactor are in place, and the dryer installed on its pedestal, ready to be connected."
The installation of the utility systems and coal conveyors continued, and the boiler stack was ready for connection to the boiler.
Electrical installation was also under way, connecting mechanical instruments to the control room.
The plant on Craig Rd, using technology developed by GTL Energy, is expected to produce up to 90,000 tonnes of low-moisture, high-energy briquettes a year from about 150,000 tonnes of lignite mined from Solid Energy's New Vale opencast mine at Waimumu.
Environmental groups, including Greenpeace New Zealand, Coal Action Network Aotearoa, and Dunedin's Southern Anti Coal Action, have protested the briquette plant's construction.
The briquette plant is the first of three projects planned by Solid Energy for lignite from the Waimumu, Croydon and Mataura areas.