The importance of geothermal energy in New Zealand

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Source: New Zealand Government

Kia ora koutou, and warm greetings from New Zealand.

It’s an honour to be here in Reno, Nevada, speaking as New Zealand’s Minister for Resources and Minister for Regional Development – two closely intersecting portfolios in New Zealand.

I want to thank the organisers of the 2025 Indigenous Geothermal Symposium for the invitation to deliver this keynote address. I would also like to acknowledge the people of Reno-Sparks Indian Colony for undertaking the opening ceremony.

This is a special gathering. Unlike many audiences where geothermal energy must be explained from first principles, here I’m speaking to experts – engineers, researchers, technology providers, and advocates. That allows me to take a broader view: to reflect on geothermal’s past, its cultural significance, and its future potential.

New Zealand is proud to be the world’s fifth-largest producer of geothermal electricity. Our location on the boundary of the Indo-Australian and Pacific tectonic plates gives us access to a world-class geothermal resource.

But our connection to geothermal energy goes far deeper than geology. For Māori, the indigenous people of New Zealand, waiwhatu – geothermal water—is a taonga, a treasure. It is a place where the physical and spiritual worlds meet. Our tīpuna, or ancestors, used geothermal waters for cooking, healing, and warmth. These practices were not just practical – they were deeply spiritual, rooted in a worldview that sees the land, water, and energy as living entities.

The Pink and White Terraces, once a major attraction in the central North Island before the 1886 volcanic eruption of Mount Tarawera destroyed them, drew visitors from around the world to bathe in their restorative waters. These terraces were more than a tourist destination – they were a symbol of the natural harmony between geothermal energy and human wellbeing.

Rotorua’s spa culture, established in the 1870s, played a vital role in healing injured soldiers returning from war. The geothermal waters were seen as therapeutic, and the region became a centre for rehabilitation and recovery.

This legacy of geothermal use is woven into our national identity. It’s a story of innovation, resilience, and respect for the land.

Globally, geothermal electricity generation began over a century ago in Larderello, Italy. New Zealand engineers visited the site in 1944 and again in 1948, witnessing its rebirth after wartime destruction. Inspired, we began exploratory drilling at Wairākei in 1949, leading to the world’s second geothermal power station – and the first to harness wet steam.

That pioneering spirit continues today. We are a small country but in geothermal science, we have consistently led the way.

Today, geothermal energy is a cornerstone of the Māori economy, and Māori have a long-term vision to enhance their role in New Zealand’s energy sector. Māori have a rich cultural heritage and a deep connection to their land and natural resources. Their identity is rooted in a unique worldview that emphasises the importance of kaitiakitanga, guardianship, over the environment, demonstrated in their commitment to sustainability and community wellbeing. 

Many Māori iwi (tribes) own land with significant geothermal potential, particularly in regions like the central North Island. As a result, they’ve become key players in geothermal energy projects, both as resource owners and partners in large-scale ventures. 

Investment in geothermal energy supports iwi, hapū, and ahu whenua (land management) trusts, enabling innovation and investment in areas like geothermal aquaculture, horticulture, and tourism.

These ventures are not just economically significant – they are culturally affirming. They allow Māori communities to exercise rangatiratanga, or self-determination, over their resources. They create opportunities for intergenerational wealth, education, and environmental stewardship.

In this way, geothermal energy is helping to shape a future that is both prosperous and culturally grounded.

I’ve been following the statements of US Energy Secretary Chris Wright with great interest. His emphasis on ‘affordable, reliable, and secure energy’ as the foundation of national prosperity resonates deeply. 

Globally, energy demand is projected to rise faster than we experienced during the Industrial Revolution in the 1800s. According to the International Energy Agency, electricity use has grown at twice the pace of overall energy demand over the last decade and is projected to rise even faster. 

As AI and other technologies drive unprecedented electricity demand, the link between energy and economic strength becomes even more critical.

Secretary Wright’s concept of ‘energy dominance’ highlights the strategic importance of energy policy. I believe we are witnessing a global reset in how geothermal is positioned – especially in countries like the United States, Japan, and New Zealand.

While geothermal accounts for around 20 per cent of New Zealand’s electricity, it contributes less than 1 per cent in the US, despite the US being the largest producer by volume. 

Just as the US is advancing its energy transition, New Zealand is developing a national geothermal strategy that aims to unlock the full potential of our geothermal resources to drive energy resilience and support regional and Māori economic development. 

The draft strategy, released for public consultation in July, sets the goal of doubling geothermal energy use by 2040, positioning New Zealand as a global leader in sustainable geothermal innovation and supporting our transition to a low-emissions economy.

Let me now turn to supercritical geothermal – sometimes referred to as superdeep or superhot geothermal. In New Zealand, we are investing in proving its viability.

Our Central North Island, home to the Taupō Volcanic Zone, offers extraordinary advantages. Scientific research confirms that supercritical fluids lie just 5–6km, or around three miles, beneath the surface—shallower than in most other regions globally.

Supercritical geothermal has the potential to revolutionise energy generation. These fluids carry vastly more energy than conventional geothermal sources. If harnessed effectively, they could provide baseload renewable energy at a scale comparable to fossil fuels.

We know the risks. We expect challenges. But just as our engineers pioneered wet steam technology in the 1950s, we are backing ourselves to innovate again.

We’ve established a robust governance structure for this programme. Our Kiwi-based team includes top engineers, scientists, and strategic advisors. 

Representatives from these groups are here in Reno and eager to connect with you.

We’ve also convened an International Review Panel.

Today I am delighted to announce that Professor Roland Horne of Stanford University has agreed to chair the panel. 

As you will know, Professor Horne is one of the world’s foremost geothermal experts and is attending the Geothermal Rising Conference here in Reno. We are delighted he has agreed to lend his expertise and leadership to our project.

I’d also like to welcome the three other highly regarded members of the International Review Panel – Dr Omar Friðleifsson and Mr Kristinn Ingason both from the Iceland Deep Drilling Project. We also warmly welcome to the panel United States geochemist Dr Darrell Gallup of Thermochem Inc.

We are very pleased to have such outstanding engineering and scientific experts join us.

On that note, I would like to say we are inviting other international collaboration – particularly from US companies and researchers. We believe the Taupō Volcanic Zone can serve as a global laboratory for supercritical geothermal.

But this is not just about New Zealand. The information we gather will have global implications. They will inform policy, guide investment, and shape the future of clean energy. Globally, we’re in an energy crisis. We need more clean, renewable energy to support the electrification of transport, industry, and data infrastructure.

Supercritical geothermal offers untapped potential that would be a great step forward for clean, green, sustainable energy. New Zealand is ready to lead – offering decades of geothermal expertise, political stability, a robust regulatory framework, and strong partnerships which our indigenous Māori landowners and communities, for whom geothermal resources are deeply embedded in whakapapa (histories), wairuatanga (identity and spirituality), and tikanga (customs).

We are already seeing interest from Japan, Iceland, and other geothermal-rich nations. The opportunity to share technology, capital, and expertise is immense.

Let me be clear, we are not just drilling wells. We are building a global partnership for energy transformation.

The future of geothermal is bright. With advancing science and deeper collaboration, the opportunities before us are limitless.

We stand at a crossroads. One path leads to incremental change. The other leads to bold innovation, cultural empowerment, and global leadership.

New Zealand has chosen the latter. We invite you to walk it with us.

Ngā mihi nui. Thank you.

MIL OSI

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