New Zealand releases $55m funding for superhot geothermal drilling
GeoShot NZ (source: Video screenshot, Ministry of Business, Innovation and Employment)
Carlo Cariaga
12 Jun 2026
The Cabinet of New Zealand has approved the release of $55 million to fund the drilling of the country's first superhot geothermal exploratory well in Rotokawa.
The Cabinet of New Zealand has now approved the release of the remaining $55 million from $60 million initially ring-fenced in the Regional Infrastructure Fund (RIF) that will go towards pre-drilling work and drilling of the country’s first superhot geothermal exploratory well.
The drilling work being planned is part of the GeoShot NZ project, which aims to access superhot geothermal fields located at approximately four to five kilometers depth. Superhot geothermal systems are expected to have around three times more energy than traditional geothermal challenges, but also presents challenges related to extreme temperatures and pressures, as well as fluid characteristics.
The latest funding milestone was announced by Regional Development and Resources Minister Shane Jones.
The first stage of the project, funded by the initial $5 million allocation, has already been completed. This phase included the detailed well design of the first of the three planned wells and the evaluation of options for specialist materials for well construction.
The Ministry of Business, Innovation and Employment will deliver the project with joint venture partners Mercury NZ and Tauhara North No.2 Trust. The Rotokawa Geothermal Field has already been selected as the site for the first well, and Todd Energy has been selected as the preferred drilling contractor
“It has always been my view that the Crown must assume leadership for energy security. This project is a critical step forward in terms of long-term security. We are proving what is possible, building national and regional expertise. This is the groundwork for future unlimited, clean, and affordable energy,” said Mr. Jones.
Source: Beehive.govt.nz
