New Zealand Aims to Double Geothermal Energy Capacity by 2040

In a bold move to harness the nation’s unique geothermal resources, Resources Minister Shane Jones has unveiled a comprehensive plan to double New Zealand’s geothermal energy production by 2040. The initiative, titled “From the Ground Up,” is a draft strategy aimed at unlocking the country’s vast geothermal potential and positioning New Zealand as a global leader in sustainable geothermal development.

Launched in Taupō today, the strategy seeks to leverage New Zealand’s geographic advantage—being located on the boundary of the Australian and Pacific tectonic plates—as well as the Earth’s thin crust in the region, which offers significant geological benefits for geothermal energy extraction.

Jones emphasized that the geothermal sector is not only a vital contributor to the country’s energy needs but also plays a crucial role in the economy, tourism, and other industries. The plan includes a range of proposals, such as improving access to geothermal data and updating regulatory frameworks to better support the sector’s growth.

A key highlight of the strategy is the potential use of “supercritical” geothermal technology, which involves drilling deeper into the Earth’s crust. This technology could produce up to three times more energy than current methods. To support this, the government has allocated $60 million from the Regional Infrastructure Fund for research into this advanced resource. $5 million of that has already been used to begin designing and costing the first of three exploratory deep wells in the Taupō Volcanic Zone.

New Zealand’s geothermal history dates back to 1958 with the opening of the Wairakei power station near Taupō, which remains one of 17 geothermal plants operating across eight geothermal fields. These plants currently generate a combined 1207 megawatts of electricity, contributing 19.9% of the nation’s annual electricity production, or 8741 GWh in 2024.

The strategy also explores diversifying the geothermal sector beyond electricity generation, including the extraction of minerals from geothermal fluid and the use of direct geothermal energy for industrial, commercial, and agricultural applications. This could open up new economic opportunities and reduce reliance on fossil fuels.

With the Taupō Volcanic Zone offering the potential to access superhot fluids at depths exceeding 5km and temperatures above 400°C, the government sees this region as a key area for future exploration and development.

As the world increasingly turns to renewable energy sources, New Zealand’s ambitious plan to double its geothermal energy capacity by 2040 could serve as a model for other nations with similar geothermal resources. The strategy is now open for public consultation, with the aim of shaping a sustainable and economically viable future for the geothermal sector.