Superhot geothermal preferred contractor named

Project chair Tim Groser said the company was chosen from 4 highly skilled and impressive applicants to drill the specialised pioneering well, following a competitive procurement and evaluation process.

“This project aims to drill to depths up to 5 to 6km – almost double that of conventional geothermal wells – to try to access a massive untapped renewable energy source.

“The science tells us that supercritical – also known as ‘superhot’ – geothermal is energy on steroids. Drilling this well is technically complex due to the extreme heat, pressures, and corrosive fluids it will encounter,” Mr Groser says.

“The lead contractor needs to manage drilling, safety, subcontractors, and end-to-end planning in a high-risk environment where experience, systems and reliability really matter.

“Todd Energy has a strong track record, including multiple drilling campaigns completed on time and within budget. It’s putting forward comprehensive project management and technical teams, drilling ancillary services, established safety systems, and a transparent commercial structure,” Mr Groser says.

“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.”

'Preferred contractor' status means the Ministry of Business Innovation and Employment (MBIE) will now enter negotiations with Todd Energy on the contract details.

Mr Groser, who is a former ambassador and trade and climate change minister, says the complex project is the first of a planned 3-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 3 times over.

“New Zealand was a pioneer in geothermal energy in the 1950s, and now we’re doing it again, seeking the next frontier, but we’re also learning from and partnering with others across the globe to tackle this exciting technological challenge,” Mr Groser says.

The project has been allocated $60 million from the government’s Regional Infrastructure Fund as part of its priorities aimed at developing a secure and resilient energy supply, backing regional economies, and giving businesses the confidence to invest.    

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

Mercury already operates 2 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 to superhot geothermal fluids.