{"id":336127,"date":"2026-03-18T19:02:22","date_gmt":"2026-03-18T19:02:22","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/336127\/"},"modified":"2026-03-18T19:02:22","modified_gmt":"2026-03-18T19:02:22","slug":"rotorua-resources-minister-shane-jones-unveils-50m-fund-for-geothermal-projects","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/336127\/","title":{"rendered":"Rotorua: Resources Minister Shane Jones unveils $50m fund for geothermal projects"},"content":{"rendered":"

In 2024, $60m was ring-fenced from the Regional Infrastructure Fund for this, and the Government announced last week<\/a> Todd Energy was the preferred lead contractor to drill New Zealand\u2019s first exploratory \u201csuperhot\u201d geothermal well near Taup\u014d.<\/p>\n

In his Rotorua speech, Jones said the strategy was about doubling geothermal energy\u2019s contribution to electricity and providing an energy source for manufacturing by 2040.<\/p>\n

The $50m fund would focus on \u201csmall-to-medium projects that provide practical outcomes\u201d and enabling landowners with geothermal potential \u201cto make that potential available\u201d.<\/p>\n

Jones said the fund would allow the Bay of Plenty to \u201cwatch the expansion of energy production\u201d.<\/p>\n

Specialist renewable energy developer Eastland Generation\u2018s Taumanu and Kopura geothermal projects near Rotom\u0101 and Kawerau had been approved for up to $20m.<\/p>\n

Jones said this would enable underground surveys, exploration and well drilling.<\/p>\n

The work could confirm whether the resource was \u201cstrong enough to stand intense use\u201d, capable of being monetised, and if landowners and investors were capable of standing up the project.<\/p>\n

Jones said the funding would be matched by another $20m in co-investment from Eastland Generation.<\/p>\n

\"RegionalRegional Development and Resources Minister Shane Jones spoke to media in Rotorua on Tuesday about the Government’s geothermal strategy. Photo \/ Megan Wilson<\/p>\n

Regarding the Whakat\u0101ne exploratory wells, Jones said there was \u201cenergy of a lower heat\u201d in the area, capable of being exploited and meeting the costs of manufacturing power.<\/p>\n

The Whakat\u0101ne Geothermal Temperature Gradient Well Programme is a project run by the University of Auckland through the Geothermal Institute.<\/p>\n

Jones said the data would be made public to the benefit of the manufacturing sector.<\/p>\n

\u201cThe Crown has borne the cost and then they can seek to exploit it, turn it into a form of energy, and start to regrow manufacturing in this part of New Zealand.\u201d<\/p>\n

Jones told media it would be \u201cseveral years\u201d before the two Eastland Generation projects could start generating electricity.<\/p>\n

\u201cWe need to ensure that any additional exploitation of our geothermal resource does not undermine the sustainability of the resource.\u201d<\/p>\n

An Eastland Generation statement said its projects near Rotom\u0101 and Kawerau \u201chave the potential to be small- to medium-sized geothermal power stations\u201d.<\/p>\n

Chief executive Alice Pettigrew described the loans \u2013 up to $10m for each project \u2013 as \u201cvisionary\u201d and said they would allow the sites\u2019 geothermal resources to start being assessed.<\/p>\n

\u201cOur team is beginning the next stage of the Taumanu and Kopura projects alongside the landowners. Together, we aim to realise the potential of the resource below their whenua.\u201d<\/p>\n

The company recently completed its fourth geothermal power plant, the 49MW TOPP2, on the Kawerau Geothermal Reservoir.<\/p>\n

\"RotoruaRotorua MP Todd McClay speaking at the Sir Howard Morrison Centre as the Government launched its geothermal strategy. Photo \/ Megan Wilson<\/p>\n

In his speech, Rotorua MP Todd McClay said when energy was of scarce availability and prices increased, \u201cour ability to be self-sufficient and have energy security is paramount for all New Zealanders\u201d.<\/p>\n

\u201cWe are lucky \u2026 to have an abundance of energy below us in the ground.\u201d<\/p>\n

McClay said the strategy was \u201cextremely important\u201d and cited a visit to Rotorua Primary School, which had solar panels.<\/p>\n

\u201cI mentioned to them it was not that many years ago actually, they used heat from geothermal here in the school to heat the classrooms for all the kids.\u201d<\/p>\n

He said cost and other challenges meant this was no longer possible.<\/p>\n

\u201cWouldn\u2019t it be wonderful if every single school in Rotorua, the kids were warm in winter, and the classes were heated with the geothermal energy?\u201d<\/p>\n

He said he believed that was \u201c[no] longer out of the question\u201d.<\/p>\n

Expansion of Ng\u0101 Tamariki Geothermal Station completed<\/p>\n

Jones, also the Associate Minister of Energy, officially opened the new generation unit at Mercury\u2019s Ng\u0101 Tamariki Geothermal Station in Reporoa near Taup\u014d on Tuesday.<\/p>\n

The $220m expansion<\/a> involved adding the station\u2019s fifth electricity generation unit. Construction started in early 2024.<\/p>\n

A Mercury statement said it lifted the station\u2019s annual average generation output to about 1120GWh, enough to power the equivalent of all residential homes in Christchurch. <\/p>\n

\"MercuryMercury chief executive Stew Hamilton and the Associate Minister of Energy Shane Jones officially opened the fifth generation unit at Mercury’s Ng\u0101 Tamariki Geothermal Station near Taup\u014d on Tuesday. Photo \/ Supplied<\/p>\n

Mercury had also drilled two new geothermal wells \u2013 one to provide additional steam supply for the new unit and the second for injection of geothermal fluid to support sustainability of the reservoir.<\/p>\n

Chief executive Stew Hamilton said adding more renewable energy was key for meeting future demand growth, building resilience and ultimately helping with energy affordability.<\/p>\n

Mercury was also working with the Government on its investigation into supercritical geothermal energy, he said.<\/p>\n

Megan Wilson<\/a> is a health and general news reporter for the Bay of Plenty Times and the Rotorua Daily Post. She has been a journalist since 2021.<\/p>\n","protected":false},"excerpt":{"rendered":"In 2024, $60m was ring-fenced from the Regional Infrastructure Fund for this, and the Government announced last week…\n","protected":false},"author":2,"featured_media":336128,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[86207,2082,295,2355,2176,6722,111,43,139,69,13578,8279,1327,7228,11743],"class_list":["post-336127","post","type-post","status-publish","format-standard","has-post-thumbnail","category-new-zealand","tag-50m","tag-for","tag-fund","tag-geothermal","tag-jones","tag-minister","tag-new-zealand","tag-news","tag-newzealand","tag-nz","tag-projects","tag-resources","tag-rotorua","tag-shane","tag-unveils"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/336127","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=336127"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/336127\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/336128"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=336127"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=336127"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=336127"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}