Strategy Highlights Geothermal Energy's Potential

Announcement Date: 31 July 2025

One of New Zealand's largest geothermal generators, Mercury, has welcomed the Government's initiative to develop a national geothermal energy strategy. Mercury's Chief Executive, Stew Hamilton, stated that geothermal energy has significant potential to enhance the country's security of supply by providing more low-carbon, baseload generation.

Hamilton emphasized that security of supply is a top priority for the sector, requiring diverse solutions, with geothermal energy playing a crucial role. He noted that New Zealand is a global leader in geothermal energy, and it is vital to continue harnessing this natural advantage.

Mercury is eager to participate in and contribute to the geothermal energy strategy, working collaboratively with government agencies, iwi partners, and regional stakeholders to support a strategy that balances innovation and sustainability.

The company is exploring new geothermal options to increase baseload generation. Mercury has interests in 30,000 hectares of land, utilizing only 9% for current geothermal generation, indicating substantial potential for future growth.

Mercury anticipates increasing its geothermal development capacity by up to 5 TWh over the next decade. The expansion of its Ngā Tamariki Geothermal Station near Taupō is expected to be completed in 2026, adding approximately 390 GWh to its generation capacity, sufficient to power around 48,000 average homes annually.

Hamilton highlighted Mercury's expertise in reservoir management and drilling, underscoring geothermal energy's importance for New Zealand's renewable future. Mercury is encouraged by the Government's strategy, which focuses on long-term planning, innovation, and inclusive development.

Mercury looks forward to contributing to the strategy's development during the consultation phase.

Mercury's Geothermal Assets

• Mercury operates five geothermal power stations in the central North Island, with an average annual generation of 2600 GWh.
• Three stations are wholly owned by Mercury, while two are joint ventures with Tauhara North No.2 Trust and Tūaropaki Trust, respectively.
• A recent geothermal drilling campaign successfully delivered three new production wells and three new reinjection wells, representing a $147 million investment.
• These new wells will enhance fuel supply for the Ngā Tamariki Geothermal Power Station expansion and maintain supply for the Rotokawa and Kawerau stations.
• An additional two wells are planned for drilling in 2026, bringing the total investment in this drilling campaign to $175 million.

Media Inquiries

For media inquiries, please contact:

Lawrence Gullery
Communications & Community Engagement Manager
Phone: 027 801 0200
Email: mercurycommunications@mercury.co.nz

About Mercury NZ Limited

Mercury generates electricity from 100% renewable sources, including hydro, geothermal, and wind. The company also operates as a retailer of electricity, gas, broadband, and mobile services. Mercury is listed on the New Zealand Stock Exchange and the Australian Stock Exchange under the ticker symbol 'MCY', with foreign exempt listed status. The New Zealand Government holds a minimum 51% shareholding in the company.

Visit Mercury at: www.mercury.co.nz