Cabinet has approved the release of the remaining $55 million of $60 million in ring-fenced Regional Infrastructure Funding for the drilling of a deep exploratory well as part of plans for New Zealand’s first superhot geothermal well.
The funding will go to pre-drilling activity and the drilling of a deep exploratory well as part of the GeoShot NZ project. This includes securing long‑lead equipment, contractors, and completing the work needed to safely drill and test the well, Regional Development and Resources Minister, Shane Jones, confirmed.
The Ministry of Business, Innovation and Employment will deliver the project with joint venture partners Mercury NZ and Tauhara North No.2 Trust at Rotokawa Geothermal Field, with New Zealand firm Todd Energy, being selected as the preferred drilling contractor.
“We now have a credible site, expert partners, strong oversight, and a programme that is technically sound and internationally connected,” Mr Jones says.
“Government support is critical to getting this pioneering high-risk but high-reward activity underway.
“New Zealand has been a geothermal pioneer since the 1950s. We are working closely with other countries, including Iceland, which is drilling its own superhot wells. This knowledge-sharing is critical when we are operating at the edge of what is technologically possible.”
The first stage of the project included the detailed design of the first of three planned wells and evaluating the options for specialist materials to cope with higher temperatures and pressures. That work, funded with $5 million from the RIF, is now complete, clearing the way for the next stage.
“This project, if we succeed, will strengthen our national capability and energy resilience, and deliver long-term regional benefits,” Mr Jones says.
The project will target superhot fluids at depths of around 4–5km – about twice as deep as conventional geothermal wells and with about three times the energy. The challenge is in developing the technology that can withstand the extreme heat and pressure at this depth then harness the energy at the surface.
“It has always been my view that the Crown must assume leadership for energy security. This project is a critical step forward in terms of long-term security. We are proving what is possible, building national and regional expertise. This is the groundwork for future unlimited, clean, and affordable energy,” Mr Jones says.
For further information go to: www.growregions.govt.nz/GeoShotNZ.
