New Zealand’s renewable energy future has been significantly strengthened by two major announcements, highlighting the critical role of geothermal power.
Mercury has officially opened the new fifth generation unit at its Ngā Tamariki Geothermal Station near Taupō, while the Government has ringfenced $50 million from the Regional Infrastructure Fund (RIF) to de-risk new geothermal projects..
Associate Minister of Energy Shane Jones and Mercury Chief Executive Stew Hamilton, alongside mana whenua Ngāti Tahu Ngāti Whaoa and Tauhara North No2 Trust, inaugurated the unit, celebrating the work of the 300 contractors and staff involved in the project.
“The expansion of energy lies at the heart of our economic problems, this represents the growth in the supply of energy obviously it’s somewhat distinctive because it’s happening in association with the tāngata whenua Ngāti Tahu Ngāti Whaoa,” Minister Jones said.
“It’s good to see that the board and the executive leadership of Mercury are continuing too find ways of enabling Māori landowners to be a part of this clean energy revolution,” he said.
“I have to remind everyone though that Mercury formerly known as Mighty River were always ahead of their time, Doug Heffernan a very famous New Zealander, he developed the template of SOEs working constructively with Māori landowners.”
The new 55MW unit is a technological advance, and the project includes a system-wide reinjection capability expected to achieve a 70% reduction in the station’s carbon emissions by 2030.
“We don’t wanna be observers anymore. We’ve seen the best and the worst of development and you know we want to be the architects of our own future, not someone else designing that future for us,” Ngāti Tahu Ngāti Whaoa Rūnanga chair, Roger Pikia said.
“Through projects like this here we’ll be able to develop more sustainable renewable energy that will play into our own energy security, moving forward so that we will be less reliant on the Middle East,” Mr Pikia said.
The $220 million Ngā Tamariki expansion, completed in under two years, lifts the station’s total annual average generation output to 1120GWh, enough to power the equivalent of all residential homes in Christchurch.
Mercury Chief Executive Stew Hamilton stressed the importance of the expansion, noting it is part of a $1 billion investment to deliver 3.5 TWh of new generation by 2030 – about 8 percent of New Zealand’s annual energy demand.
“Geothermal is central to our long-term growth. The expansion at Ngā Tamariki will help us deliver 3.5 TWh of new generation by 2030. That’s about 8% of New Zealand’s annual energy demand,” Mr Hamilton said.
Government’s $50m RIF boosts geothermal exploration and regional growth
Meanwhile, Regional Development and Resources Minister Shane Jones then headed to Rotorua to announce the $50 million ring fenced RIF funding which will help accelerate early-stage geothermal exploration which involves high upfront costs.
“Targeted government investment will help de-risk exploration and get more projects off the ground,” Mr Jones said. Geothermal already accounts for about 20% of New Zealand’s electricity supply and has varied industrial uses.
The RIF has so far successfully awarded $23 million to three projects: two $10 million loans for the Taumanu and Kopura projects near Rotomā and Kawerau, and a $3 million grant for the Whakatāne Geothermal Temperature Gradient Well Programme.
These projects, often in partnership with local Māori land trusts, are expected to create jobs and boost regional growth, collectively supporting the fastest rate of renewable generation development in the country’s history.