The government has committed up to $60 million to investigate the potential of supercritical geothermal technology (SCGT) as part of its strategy to secure the country's long-term energy supply.

Regional Development Minister Shane Jones and Science, Innovation, and Technology Minister Judith Collins made the announcement, confirming that the funding will come from the Regional Infrastructure Fund.

SCGT offers the possibility of significantly higher energy output compared to conventional geothermal sources, potentially generating up to three times more energy.

Unlike current geothermal wells, which are typically drilled to depths of about 3.5km, SCGT exploration involves drilling to depths of up to 6km.

"The potential of SCGT is immense, both for New Zealand and globally," said Mr Jones.

"If successful, it could dramatically increase our renewable energy capacity, reducing reliance on fossil fuels and supporting our transition to more sustainable energy sources."

An initial $5 million of the funding will be used for designing and assessing the feasibility of drilling the first of three exploratory deep wells in the Taupō Volcanic Zone.

This area was selected due to its abundant geothermal heat sources and relatively thin Earth’s crust, making it an ideal location for SCGT exploration.

Ms Collins emphasised that while the project holds significant promise, developing the necessary engineering technology to extract SCGT will be a major challenge.

"This is a long-term project, and any decision to move forward will depend on the early-stage success of the technology," she said.

The project will be led by GNS Science in collaboration with the Ministry of Business, Innovation & Employment (MBIE), building on years of research and studies funded by MBIE’s Endeavour Research Fund.

The first well is expected to be drilled by the end of 2025, with the full deployment of SCGT potentially taking place between 2035 and 2040.

If successful, the technology could provide a substantial return on investment, further cementing New Zealand's reputation for innovative solutions to global energy challenges.