Foreign Affairs Minister Winston Peters says the expertise of both countries in geothermal energy is recognised around the world.

“This agreement builds on decades of shared expertise and paves the way for further collaboration to advance progress in this critical sector,” Mr Peters says.

“It marks a new chapter in both nations’ long-standing interest in renewable energy innovation.”

The agreement will be implemented through joint research projects, industry workshops, and academic exchanges.

Resources Minister Shane Jones says the agreement will focus on superhot and supercritical geothermal systems, technologies with the potential to revolutionise global energy production and supply.

“Geothermal energy could be a game-changer for secure and affordable energy in New Zealand. This agreement reflects our countries’ shared ambition to unlock the full potential of geothermal energy.

“New Zealand must ensure affordable, secure, clean energy. The Government is committed to doubling renewable generation by 2050 and boosting geothermal production by 2040,” Mr Jones says.

New Zealand and Iceland’s partnership builds on recent collaboration, including the appointment of two Icelandic experts to New Zealand’s International Peer Review Panel for its supercritical geothermal project.

The formal Memorandum of Arrangement was signed at COP 30 in Belem, Brazil, by Climate Change Minister Simon Watts and Iceland’s Minister of the Environment, Energy and Climate, Jóhann Páll Jóhannsson, following discussions initiated by Mr Peters during his visit to Iceland last month.

In November last year, Mr Jones announced the Government would ring-fence up to $60 million from the Regional Infrastructure Fund for geothermal exploration. Land within the Taupō Volcanic Zone has been chosen as a preferred drilling site for the first well.