Todd Energy picked to drill first superhot geothermal well near Taupō

Todd Energy has won a Government contract to explore 'superhot' geothermal energy near Taupō.

Todd Energy has been selected as the preferred lead contractor to drill New Zealand’s first exploratory “superhot” geothermal well near Taupō, the Government said.

The Ministry of Business Innovation and Employment (MBIE) said the well, if successful, could bring about a step change in New Zealand’s energy supply.

Superhot geothermal, which involves harnessing the power of hot fluids from much deeper depths than conventional geothermal, is seen as having potential to offset the impact of rapidly declining domestic gas reserves.

The project has been allocated $60 million from the Government’s Regional Infrastructure Fund.

New Zealand-owned Todd is a producer, wholesaler and retailer of natural gas and is a major domestic generator and retailer of electricity.

Project chair Tim Groser said Todd was chosen from four applicants to drill the specialised pioneering well following a competitive process.

The project aims to drill to depths of up to 5-6km – almost double that of conventional geothermal wells – to try to access an untapped renewable energy source, he said.

“The science tells us that ‘supercritical’ geothermal – also known as ‘superhot’ – is energy on steroids.

“Drilling this well is technically complex because of the extreme heat, pressures, and corrosive fluids it will encounter,” Groser said.

“The company has its own rig and brings a fully New Zealand-based workforce and an established local supply chain, which reduces delivery risk and supports wider economic outcomes,” he said.

Preferred contractor status means MBIE will now enter negotiations with Todd Energy on the contract details.

Groser, who is a former ambassador and trade and climate change minister, said the project is the first of a planned three-well programme.

“If this well can successfully flow superhot fluids, it will substantially increase our knowledge of superhot geothermal, which has the potential to deliver enough clean, green energy to power New Zealand three times over.”

The project is being overseen by MBIE’s Kānoa-Regional Economic Development & Investment Unit in partnership with Earth Sciences New Zealand, the iwi landowners Tauhara North No.2 Trust, and NZX-listed Mercury.

Mercury already operates two geothermal stations on the Rotokawa geothermal field near Taupō, which has been selected as the site for the first superhot geothermal well.

Drilling is expected to start about mid-2027 at a location that has been pinpointed by scientists as most likely to access superhot geothermal fluids.

Jamie Gray is an Auckland-based journalist, covering the financial markets, the primary sector and energy. He joined the Herald in 2011.

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