Mercury scaling geothermal platform
14/05/2026 09:30 NZST, GENERAL
Mercury scaling geothermal platform, with up to $1 billion investment in next phase
14 May 2026 – Mercury is scaling its geothermal platform, committing $75 million to geothermal appraisal drilling for two projects at existing sites near Taupō as part of its next growth phase.
Together, the projects at Ngā Tamariki and Rotokawa, could total up to $1 billion investment and add 1TWh of new geothermal generation – the equivalent of powering an additional 125,000 homes. First generation is targeted for 2030.
Mercury Chief Executive Stew Hamilton said Mercury’s geothermal growth would be progressed in phases, with major capital decisions to follow appraisal results, technical work and investment approvals.
“Scaling our geothermal platform will strengthen our renewable portfolio, support long-term contracting with major energy users, and help meet New Zealand’s growing demand for affordable, reliable and renewable electricity.
“We have a credible, investable and repeatable geothermal platform, a strong pipeline of opportunities, and the capability and partnerships to deliver.”
Mercury is funding the growth from its own balance sheet, within clear financial guardrails. It is expected to be a value accretive investment, supporting resilient earnings and balance sheet strength.
“Our investment in geothermal will add further long-term value for our customers, partners, communities, shareholders and New Zealand,” Mr Hamilton said.
Mercury’s near-term focus is on maximising value of conventional geothermal. It is also positioning for long-term next-generation geothermal options, including harnessing superhot geothermal as technology advances.
“Our team is match fit, having successfully completed the $220m expansion of the Ngā Tamariki Geothermal Station on budget and on time in March,” Mr Hamilton said.
“We have deep geothermal expertise, a strong track record of geothermal exploration, development and operations, and enduring, multi-decade relationships with our iwi partners.”
Mercury’s investment would support the Government’s goal of doubling geothermal use by 2040 and enable geothermal, which runs 24/7, to play a greater role in firming weather dependent renewables, helping ensure the lights to stay on during winter peaks and dry years.
Mercury’s geothermal portfolio and growth strategy:
> Mercury has five geothermal stations operating in the central North Island, which following completion of the Ngā Tamariki expansion, deliver total annual generation of approximately 2900GWh.
> Mercury has up to 5TWh of conventional geothermal options across multiple, diverse, scalable reservoirs and horizons. 2.5TWh of which are in active development, including 1TWh (Ngā Tamariki and Rotokawa projects) entering feasibility.
> Further information about Mercury’s geothermal growth strategy is being presented to investors today. See Mercury’s Geothermal Investor Day presentation.
> A video and summary of Mercury Geothermal Investor Day will be available on Mercury website tomorrow.
ENDS
Howard Thomas
General Counsel and Company Secretary
Mercury NZ Limited
For investor relations queries, please contact:
Paul Ruediger
Head of Business Performance & Investor Relations
027 517 3470
investor@mercury.co.nz
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Catherine Morab
09 282 1158
mercurycommunications@mercury.co.nz