New Zealand Unveils Draft Strategy to Double Geothermal Energy by 2040

New Zealand has launched an ambitious new strategy to double geothermal energy production by 2040, aiming to elevate the nation’s global leadership in clean energy innovation while reinforcing regional development, energy resilience, and the Māori economy.

Titled “From the Ground Up – A Draft Strategy to Unlock New Zealand’s Geothermal Potential”, the plan was officially unveiled by Resources Minister Shane Jones in Taupō, the heartland of the country’s geothermal activity. The document is now open for public consultation and represents a milestone in the Coalition Government’s mission to tap into the untapped potential of geothermal energy for both electricity generation and direct heat applications.

Tapping a Deep Legacy of Geothermal Wisdom and Innovation

Minister Jones emphasized that geothermal energy has been central to New Zealand’s story for centuries.

“Our tīpuna in the central North Island used geothermal waters for heating, cooking, and therapeutic purposes. Later, settlers embraced the healing benefits of our thermal springs,” Jones remarked. “New Zealand was at the forefront of geothermal electricity development globally—and we remain at the cutting edge today.”

New Zealand’s geothermal sector has long been a cornerstone of its clean energy mix, accounting for approximately 17% of electricity generation. The strategy seeks to harness the country’s unique geological positioning—along the Pacific-Australian tectonic boundary, where the Earth’s crust is thin and thermally active—to exponentially increase the use of geothermal energy.

Strategic Goals for Economic and Energy Transformation

The draft outlines a bold vision: to double current geothermal energy production while extending geothermal use beyond electricity generation into a wide array of sectors, including:

• Industrial heating and processing

• Agricultural applications

• Commercial buildings and greenhouses

• Tourism, wellness, and mineral extraction from geothermal brine

The plan also envisions New Zealand as a global hub for geothermal innovation, exporting advanced technologies and attracting investment from international partners eager to explore the potential of supercritical geothermal systems, which involve tapping into ultra-hot geothermal reservoirs deep within the Earth’s crust.

“We are not prepared to leave this potential on the table,” said Minister Jones. “Geothermal energy is key to our energy security and affordability, while supporting industrial expansion and export growth.”

Key Areas of Action and Reform

To accelerate growth in the geothermal sector, the draft strategy proposes several high-priority actions:

• Improving access to geothermal data and subsurface insights to reduce exploration risk and enable better investment decisions

• Reforming regulatory frameworks to ensure resource development is efficient, environmentally sound, and aligned with modern energy needs

• Expanding scientific research and uptake of geothermal technologies, particularly in advanced drilling, reservoir modelling, and mineral recovery

• Investing in the development of supercritical geothermal energy, a frontier technology with the potential to yield up to 10 times more energy than conventional geothermal wells

• Strengthening collaboration with iwi and Māori enterprises to build inclusive geothermal partnerships and bolster the Māori economy

Regional and Māori Economic Empowerment

A major thrust of the strategy is regional economic revitalization, especially in geothermal-rich areas such as the Bay of Plenty, Waikato, and central North Island. The government sees geothermal as an engine for local job creation, industrial growth, and community-led development.

Importantly, the strategy also highlights the significant role of Māori landowners and enterprises, many of whom already partner in successful geothermal ventures. The government aims to further unlock the Māori economy through capability building, investment partnerships, and co-development opportunities rooted in principles of kaitiakitanga (guardianship) and long-term sustainability.

A Call for National Engagement

Public consultation on the draft strategy is now open and will run until 12 September 2025. Minister Jones is encouraging stakeholders from across the energy, science, agriculture, tourism, and environmental sectors—as well as the general public—to participate and contribute ideas.

“I am excited to start this conversation about how we work together to remove barriers and support innovation,” said Jones. “This is a once-in-a-generation opportunity to shape a geothermal future that delivers energy resilience, industrial productivity, and climate leadership.”

Global Leadership in a Changing Energy Landscape

As countries race to decarbonize and achieve net-zero goals, geothermal energy offers a reliable, low-emissions alternative that operates 24/7 and complements intermittent sources like wind and solar. With abundant underground heat and an established infrastructure base, New Zealand is uniquely positioned to lead the world in geothermal advancement.

“From the Ground Up” is not just a policy paper—it is a blueprint for transforming natural heat into national prosperity, delivering sustainable energy, economic strength, and climate resilience for future generations.