Hon Shane Jones
Minister for Regional Development

Hon Shane Reti
Minister for Science, Innovation and Technology

The Government is making good progress on its exploration of supercritical geothermal as a potential energy source, with a governance group established and potential drilling sites being identified, Regional Development Minister Shane Jones and Science, Innovation, and Technology Minister Shane Reti say.

“We need to drill an exploratory deep well to prove the commercial viability of supercritical geothermal energy. We are about a year from starting to drill but we are getting closer to locating potential geothermal fields in the Taupō Volcanic Zone,” Mr Jones says.

The choice of sites will be based on rigorous data, scientific research, and engineering experience. The location of the first exploratory well site is expected to be finalised later this year.

The Coalition Government has ringfenced $60 million from the Regional Infrastructure Fund to invest in exploring the potential of supercritical geothermal technology to help secure New Zealand’s future energy needs.

“It will be a big challenge but the potential if we can do it will be globally ground-breaking,” Mr Jones says.

“Our geothermal resources aren’t affected by weather in the same way renewable energy sources such as hydro, solar and wind are. This is particularly important in the context of energy security for New Zealand’s future prosperity.”

Geothermal energy is sourced from extremely hot rock heated by magma. At present, conventional geothermal wells are drilled to a maximum depth of about 3.5km. Scientists believe by drilling beyond this, possibly to 6km deep, the energy output could be up to three times greater than traditional geothermal energy generated from steam.

“With the search for potential exploratory well sites being narrowed down, we need to develop and prove the drilling and engineering systems for extracting the energy. Supercritical geothermal wells require casing materials that can withstand both high temperatures and potentially corrosive supercritical fluids,” Dr Reti says.

“I’m issuing a challenge to the New Zealand science and research community – academics, scientists and industry - help us find the solution. A lot of innovative research is happening across the country in pockets that could lead to the solution we need. It will be through these experts and sectors coming together and working collaboratively that we will crack this,” Dr Reti says.

The Ministry of Business, Innovation and Employment (MBIE) and GNS Science are leading the initiative, with MBIE setting up a Supercritical Geothermal Governance Group tasked with providing oversight and advice, and supporting the successful delivery of the project.

The Supercritical Geothermal Project Board members are:

• Chairperson - Hon Tim Groser – has 35 years career in trade and economic issues. He was former NZ Ambassador to the United States, former Minister of Trade, and Minister for Climate Change.
• Dr Charlotte Severne (Ngāti Tūwharetoa, Ngāi Tūhoe) is the Māori Trustee and leads Te Tumu Paeroa - the Office of the Māori Trustee. She holds a PhD in geology and has held various governance leadership roles within the primary and energy sector.
• Keith Turner – an electrical engineer and business executive with more than 50 years’ experience in the electricity sector, including being the chairman of Transpower. He is a Distinguished Fellow of Engineering New Zealand.
• Jason Hollingworth - over 30 years’ experience in a range of senior corporate finance roles. His is currently the CFO at Vector. His previous roles include being CFO of SKY TV, TelstraClear, and investment manager for Ngai Tahu Holdings.

A total of $5m of the $60m government funding will be drawn down for work on the detailed design and costs of drilling the first exploratory well.

Mr Jones will launch a geothermal strategy for New Zealand during Geothermal Week in Taupō in July.

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