The Government is going full steam ahead on geothermal energy, unveiling a strategy to double its use by 2040 and committing $50 million in Regional Infrastructure Fund money to help drive new developments.
Regional Development and Resources Minister Shane Jones launched the funding from Rotorua alongside the launch of the Government’s geothermal strategy, From the Ground Up.
"Early-stage geothermal exploration involves high upfront costs," Jones said.
"Targeted government investment will help get more projects off the ground."
The $50 million, ringfenced from the Regional Infrastructure Fund, is aimed at supporting early development work, which the Government says is one of the biggest hurdles for geothermal expansion.
"Given the scale of opportunity, it makes sense to ringfence this funding to lift productivity and strengthen regional resilience," Jones said.
Geothermal energy currently provides close to 20% of New Zealand's electricity, while geothermal heat was used in industries including milk and timber drying, horticulture, aquaculture, building heating and tourism.
Three projects have already secured funding totalling $23 million.
Two $10 million loans have been granted to the Taumanu and Kopura geothermal projects near Rotomā and Kawerau, which could eventually lead to the development of two new geothermal power stations.
It included underground surveys and the exploration well-drilling and testing to confirm the geothermal resource.
"These are early stage projects that, if successful, have the potential to develop additional renewable, reliable, low emissions, home grown energy," Jones said, adding the developments also supported Māori economic participation.
"With the right settings, geothermal can do even more through attracting investment, enabling new technologies and giving Māori landowners and regional businesses real opportunities to create value from the resources beneath their feet," he said.
Around 140 jobs were expected during construction, with up to 20 permanent roles once the stations were operating.
A third project in Whakatāne received a $3 million grant to drill exploratory wells aimed at supporting future geothermal heat use in the eastern Bay of Plenty.
The geothermal strategy also committed to modernising regulation, improving access to data, reducing development risk and supporting next generation technologies, including supercritical geothermal.
"This strategy provides momentum by clearing barriers, speeding up development, giving investors confidence and giving developers a green light to get on with it," Jones said.
"We're backing geothermal to help power New Zealand's next chapter of growth."
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