The Government has ringfenced NZD 50 million from the Regional Infrastructure Fund for geothermal project development.
Regional Development and Resources Minister Shane Jones said early-stage geothermal exploration involved high upfront costs. Targeted government investment will help de-risk exploration and get more projects off the ground.
“Given the scale of opportunity, it makes sense to ringfence NZD 50m to help de-risk and ensure geothermal projects are well-positioned to lift productivity and strengthen regional resilience,” said Jones.
In New Zealand, geothermal energy accounts for about 20 percent of the electricity supply. Geothermal heat can also have direct industrial and commercial uses, such as in timber or milk drying, heating glasshouses for horticulture, or water for prawn farms. It’s also used to heat buildings and water in hospitals, homes and tourist spas.
Three projects have so far secured funding totalling NZD 23m from the Regional Infrastructure Fund (RIF).
Through this ringfenced funding, two NZD 10m loans have been granted to the Taumanu and Kopura geothermal projects near Rotomā and Kawerau.
The projects involve early work to unlock two new geothermal power stations for potential electricity generation. It includes underground surveys and the exploration, well-drilling and testing necessary to confirm the geothermal resource.
The funding for the Taumanu and Kopura Projects will be delivered through joint ventures between renewable energy company Eastland Generation and local Māori land trusts.
“These are early-stage projects that, if successful, have the potential to develop additional renewable, reliable, low-emissions, home‑grown energy, while helping boost Māori economic development, jobs, and long‑term regional growth and resilience.”
Around 140 jobs are expected during construction, with up to 20 permanent roles once the power stations are operating, as well as opportunities for local suppliers.
A third project in the Bay of Plenty has received a NZD three million grant. The Whakatāne Geothermal Temperature Gradient Well Programme is a project run by the University of Auckland's Geothermal Institute.
It plans to drill three exploratory wells in Whakatāne to provide data that will reduce geological uncertainty and enable future development of renewable heat supply for industrial and community users in the eastern Bay of Plenty.
Relevant projects which meet the criteria and have already applied to the RIF will be considered for the ring-fenced funding. Applications for new projects will also be accepted for consideration.
Successful projects will be announced when they have been evaluated, and ministers have made decisions.
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