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Doubling the production of geothermal energy by 2040 for electricity generation and direct heat applications is part of an ambitious plan to harness the vast potential of New Zealand’s geothermal resources, Resources Minister Shane Jones says.
From the Ground Up – a draft strategy to unlock New Zealand’s geothermal potential, launched for consultation by Jones in Taupō on July 31, seeks to position the country as a global leader in sustainable geothermal development while delivering innovation, resilience and growth.
“Our history of utilising geothermal resources is extensive. Our tīpuna in the central North Island used geothermal waters for heating, cooking and therapeutic purposes, and later settlers enjoyed the healing benefits of our thermal springs,” Jones says.
“New Zealand was at the forefront of global utilisation of geothermal energy for electricity generation, and today the sector is a vital contributor to our economy as part of our energy sector, tourism and beyond.
“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.
“This strategy aims to build on the great work already under way and provide a clear direction for future endeavours.”
In addition to energy outcomes, the draft strategy aims to extend New Zealand’s position as a world leader in geothermal innovation and strengthen regional economies and the Māori economy. It will advance geothermal development and will help unlock industrial growth, tourism and trade to support the country’s goal of doubling exports.
“The Coalition Government is not prepared to leave potential on the table as we strengthen our economy, and as we grapple with energy security and affordability challenges,” Jones says.
“I see potential for our geothermal sector to expand and diversify into areas such as the extraction of minerals from geothermal fluid, the development of globally sought-after innovation and science, and more use of direct geothermal energy to power industrial, commercial and agricultural applications.
“We are proposing some key actions that address the challenges the sector faces when it comes to growth such as improving access to geothermal data and insights, ensuring our regulatory settings are fit for purpose, advancing knowledge and uptake of geothermal technologies, and driving science, research and innovation, including our investment to unlock supercritical geothermal technology.
“Consultation closes on September 12, 2025, and I encourage anyone with an interest to have their say. I am excited to start this conversation about how we work together to remove barriers and support innovation to ensure we remain global leaders in this field.”
