By pursuing hotter geothermal resources, New Zealand can unlock unprecedented energy security and economic growth. In a recent NZ Herald article, Castalia's Managing Director, Andreas Heuser, wrote about this superhot opportunity.
New Zealand’s total current demand is about 40,000 GWh, and forecasts are showing a 50% rise by 2050. In less than three years, wholesale energy prices have leapt from about $100 per megawatt hour (MWh) to an average of about $860 in 2024. To secure the electricity generation we need, and to meet our emissions reductions, New Zealand's forecasts have focused on expanding existing renewable technologies like wind and solar. But near-future technologies can help us meet this challenge.
'Geothermal: The Next Generation (GNG)’ is one such ambitious research initiative that is investigating how supercritical geothermal resources could offer a near-limitless baseload energy supply for New Zealand. Supercritical or "superhot" geothermal energy harnesses high temperatures found below the surface between 3.5 and 6km depth.
“The results are exciting, and we are looking forward to support the government and the private sector to realise this New Zealand Inc opportunity.”
Dr Isabelle Chambefort, GNG Programme Leader & Energy Futures Leader, GNS Science
So far, only Iceland, Japan, United States and Kenya have successfully drilled superhot wells - with Japan and New Zealand next in line to develop superhot further.
To verify if supercritical geothermal is an economically viable near-future technology for New Zealand to pursue, Castalia were engaged to independently evaluate the opportunity. The Castalia report, published in November 2023, declares supercritical geothermal could meet all elements of the energy trilemma (security, sustainability, and affordability) and provide abundant baseload, zero emissions, and reliable electricity for New Zealand.
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