The Government is investing $60 million in a new energy source, supercritical geothermal technology, which could increase New Zealand's energy production by up to three times.
Regional Development Minister Shane Jones and Science, Innovation, and Technology Minister Judith Collins announced the investment from the Regional Infrastructure Fund. The project aims to explore the potential of this new energy source, which is believed to exist in large quantities at shallow depths in the Taupō Volcanic Zone. Geothermal energy is sourced from extremely hot rock heated by magma.
The Coalition Government considers a secure and resilient energy supply crucial for rebuilding the economy and giving businesses confidence to invest. The project will be led by GNS Science and the Ministry of Business, Innovation & Employment (MBIE). Initially, only $5 million will be drawn down for work on the detailed design and cost to drill the first of three exploratory deep wells.
The Taupō Volcanic Zone was chosen due to its thinner Earth's crust compared to other places in the world. The initiative aims to reduce emissions and reliance on non-renewable fuels, such as gas and coal. If successful, New Zealand could deploy the technology between 2035-2040, providing a massive payback for the investment.
A decision by the Government to start drilling the first well is expected by the end of 2025. The project's long-term proposition involves developing and proving the engineering systems necessary to extract the energy, which will be a significant challenge globally.