$50m on the table: Is there a geothermal opportunity for your business?

The Government has recently released a national geothermal strategy, alongside $50m of new funding to help get projects off the ground. If your business uses heat, energy or is thinking about reducing costs or emissions – this matters, as the focus is on practical, real-world applications – not just big power stations. It’s about projects businesses can connect to and benefit from.  

For our region, with its potential to harness low-temperature geothermal energy, this represents growing momentum, increased investment and an opportunity to advance our transition toward a more resilient and sustainable energy future. Regions that are ready will benefit first, and some of the funding is already landing in the Bay of Plenty. 

Why geothermal energy is key

New Zealand already has world-class geothermal resources, and we’re one of the largest geothermal energy producers globally. But much of this potential is still untapped. 

At the same time: 

• Energy demand is expected to grow significantly over the next 25 years  
• Businesses are under pressure to reduce emissions  
• Gas supply constraints are creating uncertainty  

Geothermal offers a reliable, local solution. It provides constant energy (not weather-dependent) and can support both electricity generation and direct heat use. 

A $50m opportunity 

The Government’s $50 million fund for geothermal projects is focused on turning ideas into action. It’s aimed at exploration and proving geothermal resources, early-stage project development, and small-to-medium scale GeoHeat projects. 

It will be delivered through the Regional Infrastructure Fund and is designed to reduce upfront risk, which has traditionally been one of the biggest barriers to geothermal development. 

Some funding has already been allocated in the wider Bay of Plenty, including up to $20m for the Kopura geothermal project (Rotomā & Kawerau), and $3m for exploratory drilling in Whakatāne. 

More funding is now available, but regions will need to move quickly to take advantage of it. 

GeoHeat potential for local business

One of the biggest shifts in the strategy is a move beyond electricity generation to a broader use of geothermal heat, known as GeoHeat 

This opens new opportunities for businesses, including food and timber processing, glasshouses and horticulture, aquaculture, heating for buildings and communities, and tourism and wellness experiences. Lower-temperature geothermal resources – including those outside the traditional geothermal hotspots – are now becoming more viable thanks to advances in technology. 

For businesses in the Western Bay of Plenty, geothermal could offer: 

• Lower and more stable energy costs over time  
• A pathway to reduce emissions  
• Greater energy security  

There are also wider opportunities across the supply chain — from engineering and drilling to construction, research, and ongoing operations. 

Geothermal development is also about place-based growth. Many geothermal resources sit within or near Māori-owned land, and there is strong emphasis on partnership with iwi and hapū, long-term regional economic development, and building local skills and capability. 

Done well, geothermal projects can support jobs, innovation, and resilient local economies. 

What Happens Next

The strategy sets a clear direction — but the next step is turning it into real projects on the ground. 

Key focus areas will include: 

• Making geothermal data more accessible  
• Supporting early-stage exploration  
• Streamlining consenting processes  
• Building skills and workforce capability  
• For our region, this is an opportunity to get involved early and help shape how geothermal develops locally. 

Want to understand where the geothermal opportunity is heading and how your business could benefit? Secure your place at our event on 30 April.