Govt delivers just what the geothermal sector needed

On November 14 the Government announced that up to $60 million will be ring-fenced from the Regional Infrastructure Fund to explore the potential of supercritical geothermal technology to help secure New Zealand’s future energy needs.

The aim of supercritical geothermal technology (SCGT) is to harness extremely high-temperature fluids from deep underground to generate renewable energy more efficiently than conventional geothermal technology. It is a landmark moment for New Zealand’s energy sector. This funding not only highlights the Government’s commitment to renewable energy but also underscores the pivotal role that geothermal energy plays in New Zealand’s energy mix.

New Zealand is particularly rich in geothermal energy, with its use dating back to central North Island Māori for heating, cooking and therapeutic purposes. It’s a cornerstone of New Zealand’s renewable energy landscape, providing a stable and reliable source of electricity, contributing significantly to meeting the country’s energy needs. As New Zealand transitions towards a more sustainable energy future, the role of geothermal energy will become even more critical, particularly for the electrification and hydrogenation of our transport fleet, which will need a substantial increase in renewable energy capacity.

The Government’s decision to allocate funding from the Regional Infrastructure Fund is a natural fit. Geothermal resources are predominantly located in regional New Zealand, making them a perfect driving force for regional development. Investing in SCGT will not only create new jobs and industries but also promote economic growth in Waikato, Bay of Plenty and beyond.

Building on a legacy of innovation and government support

New Zealand’s success in geothermal energy is a result of its rich natural resources combined with world-leading innovation in science and engineering. The country’s history of geothermal development dates back to the 1950s, 60s, and 70s, when the Ministry of Works led extensive exploration efforts. These early initiatives laid the foundation for New Zealand’s current geothermal capabilities.

The Government’s renewed support is crucial for the next generation of geothermal exploration. The $60 million investment will support research and development, enabling the industry to overcome the challenges associated with the advanced technology required to harness this promising source of energy.

There are many challenges, but New Zealand’s geothermal ecosystem is well-positioned to meet them. The country boasts a tight-knit community of research institutes, generators, service companies, community groups, and universities that have been supporting development in geothermal energy for over 60 years.

GNS, the University of Auckland’s Geothermal Institute and others have already dedicated years of research to preparing for the next stage of SCGT, creating a collaborative environment that fosters innovation and ensures that New Zealand remains at the forefront of geothermal technology.

New Zealand has a well-deserved reputation as a leader in geothermal energy. The country’s experts have contributed to geothermal development in every geothermal-producing country in the world. Their sought-after expertise continues to play a key role in decision-making with partners in leading geothermal countries such as the USA, Indonesia, and the Philippines and it has been instrumental in initiating geothermal development in several countries.

What makes us so good at this

Minister of Science, Innovation and Technology Judith Collins has rightly identified the engineering challenges associated with SCGT. However, New Zealand is particularly strong in key aspects of engineering and extremely well positioned to address those challenges.

Our geothermal drilling capabilities are outstanding; our drilling code has been adopted by many other jurisdictions as global best practice and our drilling experts also supported our Icelandic colleagues when they drilled their first deep geothermal well.

Geothermal reservoir engineering and management in New Zealand are second to none. One of the Geothermal Institute’s key consulting services is providing expert advice to New Zealand and major international generation companies to support resource assessment, the targeting of geothermal wells (bores) and resource utilisation. Many years of experience using detailed modelling and advanced geosciences show our approach gives developers the best chance of finding a viable resource when drilling expensive wells. The same rigour should be applied to increase the chance of success in SCGT.

New Zealand’s generators are recognised for their resource management practices, which are held up as international best practice. They often host international delegations eager to learn about New Zealand’s innovative solutions to geothermal challenges.

Similarly, New Zealand delivers geothermal project management globally to support complex projects and have a long track record of success in Southeast Asia, East Africa, and beyond. This expertise ensures that New Zealand can effectively manage the complexities associated with SCGT.

A brighter future, thanks to geothermal energy

This investment is what New Zealand’s geothermal sector has been waiting for. It will enable it to find innovative solutions to difficult challenges and deliver more sustainable megawatts for New Zealand, a significant step forward in the country’s renewable energy journey.

The expertise gained from this exploration will not only benefit New Zealand but support the global transition to renewable energy and ensure New Zealand’s geothermal professionals will continue to play a leading role in international geothermal development.

The $60 million investment in supercritical geothermal technology is bold and forward-thinking. With our rich natural resources, expertise and government support, New Zealand is positioned to lead the way in this exciting new frontier of geothermal energy.