The Government will invest $150,000 in stimulating demand for geothermal heat resources in the Bay of Plenty region, Economic Development Minister Simon Bridges and Energy and Resources Minister Judith Collins announced today.
“Geothermal energy is a global industry estimated to be worth $62.8 billion by 2020,” Mr Bridges says.
“Currently only 5 per cent of geothermal energy is being used in New Zealand. There is significant potential for greater use both across the Bay of Plenty and other regions in New Zealand.”
The investment will be used for a Geothermal Business Development Lead to support work in stimulating demand for geothermal heat resources, including attracting investment from industry and promoting the value proposition and commercial opportunities.
“The costs of renewable geothermal energy are often comparatively cheaper than gas and coal. New Zealand could be at the forefront of this as we have a secure and renewable energy source at our fingertips,” Ms Collins says.
“If used for high value products, geothermal heat could add millions to the local and national economy, growing industries in timber drying, aquaculture/tourism, horticulture and milk drying.”
This work is a significant action from the Start 2 Steam Workshop held in Rotorua in May and also forms part of the Toi Moana Bay of Plenty Action Plan.
The project will be led by the region with central government support from the Regional Growth Programme.