NZ Accelerates Supercritical Geothermal With $60M Funding and Site Planning

The New Zealand Government is advancing its ambitious plan to explore supercritical geothermal energy, with significant progress already underway toward the drilling of the country’s first deep exploratory well. The project, a potential game-changer in the global renewable energy sector, is being led by the Ministry of Business, Innovation and Employment (MBIE) in collaboration with GNS Science, and will be overseen by a newly appointed Supercritical Geothermal Governance Group.

The initiative is part of a $60 million investment from the Regional Infrastructure Fund, aimed at developing a high-output, weather-resilient renewable energy source that could transform New Zealand’s future energy landscape.

“We need to drill an exploratory deep well to prove the commercial viability of supercritical geothermal energy. We’re about a year away from drilling but we’re narrowing down potential geothermal fields in the Taupō Volcanic Zone,” said Regional Development Minister Shane Jones.

Why Supercritical Geothermal Matters

Unlike conventional geothermal energy, which typically involves drilling to depths of around 3.5 km, supercritical geothermal aims to tap into extreme temperatures and pressures by drilling as deep as 6 km into the Earth’s crust. At these depths, geothermal fluids can enter a supercritical state, where they are neither liquid nor gas but a highly efficient energy carrier.

“Scientists believe the energy output from supercritical fluids could be up to three times greater than traditional geothermal energy generated from steam,” Minister Jones explained.

This makes supercritical geothermal a potential breakthrough in renewable baseload power, offering a reliable alternative to wind, solar, and hydro, which are more affected by changing weather patterns.

“Our geothermal resources aren’t weather-dependent like other renewables. This is vital for energy security and our future prosperity,” said Jones.

Governance Group Brings Cross-Sector Expertise

To oversee the project’s execution and ensure its success, a Supercritical Geothermal Project Board has been established. The board brings together experts in energy, geology, finance, Māori governance, and trade:

• Chairperson: Hon Tim Groser – Former Minister of Trade and Ambassador to the U.S., with deep experience in climate and economic policy.

• Dr Charlotte Severne (Ngāti Tūwharetoa, Ngāi Tūhoe) – Māori Trustee and expert in geology and primary sector leadership.

• Keith Turner – Veteran electrical engineer and former Transpower Chair, bringing over 50 years of experience in energy systems.

• Jason Hollingworth – Chief Financial Officer at Vector, with a history in senior corporate finance roles across telecommunications and iwi investment.

This high-calibre board will provide strategic oversight, ensuring the project adheres to scientific rigour, engineering best practices, and national interests.

Scientific and Engineering Challenges Ahead

Science, Innovation, and Technology Minister Shane Reti acknowledged that drilling to such extreme depths poses significant technical challenges. Materials used must withstand extreme heat and pressure, while the supercritical fluids themselves may be highly corrosive.

“We need to develop and prove the drilling and engineering systems for extracting the energy,” said Dr Reti. “Supercritical geothermal wells require casing materials that can withstand both high temperatures and potentially corrosive fluids.”

Dr Reti issued a call to action to New Zealand’s science and engineering communities:

“I’m issuing a challenge to the New Zealand science and research community – academics, scientists and industry – to come together to solve this. A lot of innovative research is happening in pockets across the country. Now is the time for collaboration.”

This challenge underscores the Government’s intent to make the project not just a technical endeavour but a nationwide innovation effort, bringing together universities, Crown Research Institutes, private sector innovators, and international partners.

Strategic Roadmap and Milestones

The location of the first exploratory drilling site is expected to be confirmed later in 2025. The decision will be based on scientific data, geological surveys, and engineering assessments, with a strong focus on the Taupō Volcanic Zone, one of the most geothermally active regions in the country.

A total of $5 million from the $60 million fund has already been earmarked for the detailed design and cost planning for the well, which will serve as a prototype for future drilling operations.

The broader geothermal strategy for New Zealand will be formally launched by Minister Jones during Geothermal Week in Taupō in July, marking a major policy milestone in the country’s energy transformation journey.

A Renewable Frontier With Global Potential

If successful, New Zealand’s supercritical geothermal project could place the country at the forefront of next-generation geothermal innovation. Globally, few nations have ventured into commercial supercritical geothermal drilling, and New Zealand’s expertise in geothermal technology positions it as a potential leader in this emerging field.

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

With bold investment, high-level governance, and a clear roadmap, the supercritical geothermal initiative stands as one of the most promising developments in New Zealand’s energy future—offering not just cleaner power, but a resilient, scalable energy source fit for the challenges of a changing climate and growing demand.