Three Geothermal Exploration Projects Approved in Eastern Bay

The Government is encouraging geothermal exploration with $50 million in funding for geothermal projects across the country, including projects in the Bay of Plenty. 

Regional Development and Resources Minister Shane Jones announced $50 million from the Regional Infrastructure Fund will go towards the development of geothermal projects. 

Early exploration is costly, so the funding ensures "geothermal projects are well-positioned to lift productivity and strengthen regional resilience,” he said. 

Three projects worth a total $26 million have been approved in the Eastern Bay. 

Two projects, Taumanu and Kōpura near Kawerau have been granted two $10 million loans. 

The projects will involve underground surveys and exploration well drilling to find geothermal sources that could be used for potential geothermal power stations. 

This is expected to provide around 140 jobs to the area. 

The joint venture between renewable energy company Eastland Generation and local Māori land trusts would also provide twenty permanent roles at two new power stations.

“These are early-stage projects, that if successful, have the potential to develop additional renewable, reliable, low-emissions, home-grown energy, while helping boost Māori economic development, jobs, and long‑term regional growth and resilience,” Jones said. 

A third project was approved in Whakatane. 

The Whakatāne Geothermal Temperature Gradient Well Programme has received $3 million in funding to drill three exploratory wells in Whakatane. 

Results will provide data to reduce uncertainty around geothermal activity and lead to development of a renewable heat supply for the Eastern Bay. 

The project will be run by the University of Auckland through the Geothermal Institute. 

The announcement comes as Jones revealed long term strategy for geothermal resources this afternoon. 

The Government wants to double its energy use by 2040 Jones said.

The "From the Ground Up" strategy will "provide momentum by clearing barriers, speeding up development, giving investors confidence and giving developers a green light to get on with it." 

It lays out plans to modernise regulatory settings, reduce early stage risk for developers and and support growth for geothermal power.

“From Ngāwhā, Kawerau, Taupō and beyond, geothermal is already powering industry, tourism and local jobs while contributing around 18 percent of the electricity to the national grid.

“With the right settings, geothermal can do even more through attracting investment, enabling new technologies and giving Māori landowners and regional businesses real opportunities to create value from the resources beneath their feet.” he said. 

Jones said geothermal power should power Aotearoa's next generation of growth.