30-07-2025
New Zealand Wants to Double Use of Geothermal Energy by 2040
(Bloomberg) -- New Zealand wants to double geothermal energy use by 2040 to aid its transition to renewable electricity and reduce greenhouse gas emissions.
The government has begun consultation on a refreshed strategy to tap the South Pacific nation's geothermal potential, Resources Minister Shane Jones said Wednesday in Wellington.
'Our unique geographic position on the boundary of both the Australian and Pacific tectonic plates, coupled with the Earth's thin crust along that rift, gives us a significant geological advantage in expanding the use of this abundant natural resource,' Jones said. 'This strategy aims to build on the great work already under way and provide a clear direction for future endeavors.'
New Zealand built the world's second geothermal power plant in the late 1950s and is the fifth-largest geothermal power producer in the world, according to the strategy document produced by the Ministry of Business, Innovation and Employment. While companies like Contact Energy Ltd. and Mercury NZ have opened new plants, the overall development of the industry has been fragmented and exploration of potential fields has stagnated, creating the need for a fresh direction, the ministry said.
The government wants to see more electricity generated from renewable sources like steam, hydro and wind so it can reduce carbon emissions from coal and gas-fired plants. Officials expect domestic power demand to climb 68% in the next 15 years, creating the need for more investment in new generation including geothermal.
It also wants to explore how geothermal energy can be used directly in industrial, commercial and agricultural applications to replace existing coal-fired boilers.
Jones wants to develop technology to tap so-called supercritical geothermal fluids, which are deeper and hotter and contain significantly more energy than existing sources. He also sees scope to extract minerals from geothermal fluid and to develop technology and sciences that can be exported to other nations.
Initially the government wants to improve the regulatory framework and access to data that will allow more developers — including indigenous Maori groups who may own land above the steam resource — to consider their options. Eventually there may be scope for the government to get involved in further exploration, according to the document.
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