Regional Development Minister Shane Jones and Science, Innovation and Technology Minister Judith Collins said up to NZD $60 million will be ring-fenced from the Regional Infrastructure Fund to invest in exploring the potential of supercritical geothermal technology, which could help secure New Zealand’s future energy needs.
The Coalition Government has prioritised a secure and resilient energy supply, critical to rebuilding the economy and giving businesses the confidence to invest.
“Geothermal energy is sourced from extremely hot rock heated by magma. Currently, conventional geothermal wells are drilled to a maximum depth of about 3.5km. However, scientists believe that more energy will be available by drilling beyond this, possibly 6km deep,” said Jones.
“The energy generated from supercritical geothermal technology (SCGT) could be up to three times greater than current geothermal energy from steam. In the long term, this could be a game-changer for New Zealand and potentially internationally, with other countries also chasing solutions to energy challenges.”
Initially, NZD $5 million of the funding will be used to work on the detailed design and cost of drilling the first of three exploratory deep wells in the Taupō Volcanic Zone. The Crown will also engage with stakeholders, particularly local iwi and hapū, on opportunities for involvement.
“We will need to fully understand whether the engineering technology to harness the energy can be developed before we consider releasing any further funds beyond the initial $5m,” said Collins.
“Developing and proving the drilling and engineering systems for extracting SCGT will be a big challenge and is globally ground-breaking.”
GNS Science and the Ministry of Business, Innovation and Employment (MBIE) will lead the initiative. The work will be informed by GNS Science research funded by MBIE’s Endeavour Research Fund and years of other studies at the Taupō Volcanic Zone.
The Taupō Volcanic Zone was considered an excellent site to drill for SCGT. Significant geothermal heat sources exist in Taupō at shallow depths, and the Earth’s crust is thinner there than in almost every other place in the world.
“More use of geothermal energy would reduce emissions and reliance on fuels such as gas and coal, as New Zealand moves to more renewable energy over coming decades,” added Jones.
“Renewable energy, at present, cannot be relied on for our energy needs. The hydroelectric generation currently provides 60 percent of our power needs. However, as this winter has shown, a lack of rain can quickly turn into a crippling issue.”
Collins also mentioned that the project was a long-term proposition.
A decision by the Government to start drilling the first well could be made by the end of 2025, with the aspirational deployment of the technology between 2035-2040. The payback could be massive if New Zealand, known for its innovative approach to problems, succeeds.
