A history of geothermal direct use development in the Taupo Volcanic Zone, New

Zealand

abstract

New Zealand’s direct geothermal energy use is focussed in the Taupo Volcanic Zone, with the majority being commercial and industrial installations near Rotorua, Taupo and Kawerau.
Bathing is the oldest and most numerous use of geothermal resources, but industrial process heat uses the most energy. Historical growth of direct use has not shown a trend of steady
growth or constant development over time. Rather, geothermal energy use has had periods of growth, decline and little or no change. This paper examines four phases of growth over the
past 60+ years, and reviews some of the developments that have occurred. © 2015 Elsevier Ltd. All rights reserved.

1. Introduction

This paper reviews the history of geothermal direct use devel-opment in New Zealand’s Taupo Volcanic Zone (TVZ, Fig. 1). An overview of published
studies is included, as well as information on the geothermal resource availability in the TVZ, and the existing and potential uses of the energy. Four periods of
development are described, with examples focussing on industrial and commercial-scale operations. The data provided includes installation name, location,
start/end dates, and type of use.
This review of direct use applications focuses predominantly on bathing (the largest use by number of installations), and pro-cess heat operations (the largest
use by energy consumed). Motels, hotels and other commercial holiday accommodation also use geothermal energy for water/space heating and bathing in the
TVZ. These users account for a significant number of installations, estimated to be ca. 80 (BOPRC, 2005). However, commercial accom-modation operators were
not included in this study, except for key historic developments where published data was available. The study has also not considered natural hot springs and
streams that have not been developed. Geothermal (ground-source) heat pump installations and domestic uses have also been excluded.
Previous studies of direct use applications in New Zealand are summarised in conference papers, journal articles, Government updates and international
reviews. For the past 30 or so years, country updates have been on an approximately five yearly cycle, highlighting the major geothermal developments during the
pre-ceding 5 years. The major papers reviewing geothermal direct use developments in New Zealand include Freeston (1985), Lund and Clelland (1990), Thain
and Freeston (1995), Thain and Dunstall (2000), Dunstall (2005), Harvey et al. (2010) and Carey et al. (2015). Additionally, New Zealand geothermal use updates
have been presented in various conference proceedings (e.g. White, 2006a; Harvey and White, 2012; Bromley, 2012).
Data and summary reports are compiled at least annually for and by the New Zealand central government (currently via the Ministry of Business, Innovation
and Employment). Various associations also collect, collate and present data, including the New Zealand Geothermal Association (e.g. White, 2006b, 2009),
International Geothermal Association (e.g. Harvey et al., 2010) and Interna-tional Energy Agency—Geothermal Implementing Agreement (e.g. Bromley and
White, 2011). Broader reviews of geothermal energy use in New Zealand also include Speden and Allis’s (1997) review of 50 years of geothermal use in New
Zealand, and Hunt and Lund’s (2002) summary of geothermal use.
The literature also contains descriptive case studies of geother-mal direct use installations in New Zealand. Examples include Rotorua Hospital (Steins and
Zarrouk, 2012), Taupo Hospital (Febrianto et al., 2013), Broadlands Lucerne Co. (van de Wydeven and Freeston, 1980; Pirrit and Dunstall, 1995), Prawn Park
(Lund and Klein, 1995), geothermal orchids (McLachlan, 1998), and Kaw-erau’s timber drying (Scott and Lund, 1998), glasshouses (Dunstall and Foster, 1998)
and the Tasman pulp and paper mill (Hotson, 1994, 1997). Some published papers have provided a short descriptive sum-mary by geothermal area, such as Taupo
(Koorey, 1996), Rotorua (Lund, 1976; Anderson, 1998) and Kawerau (Bloomer, 1997, 2011, 2015). Example of engineering-focussed studies, which discuss heat
exchangers, equipment, controls and systems for direct use installations, include Drew (1988), Gudmundsson (1988), Steins et al. (2012) and Dunstall and
Freeston (1989).
Fig. 1. Geothermal resources in New Zealand’s Taupo Volcanic Zone (TVZ), indicating the development status of each. Boundaries are shown for the Waikato and Bay of Plenty Regions. Field
numbers refer to Table 1.

2. Geothermal resources in the TVZ

Geothermal systems are present throughout New Zealand with high temperature fields (>225 ◦ C) generally magmatic-related sources and localised, such as
the TVZ. The more widely scattered moderate (125–225 ◦ C) to low (<125 ◦ C) temperature resources can be related to young volcanism, or non-magmatic origin
related to deep faults and tectonic features. The latter can be found through-out New Zealand, with many located on along the Alpine Fault in the South Island
(Hochstein, 1990; Reyes et al., 2010).
The TVZ (Fig. 1) is an area of high heat flow with geothermal, volcanic and tectonic activity. It is situated above a subduction zone, where the Pacific plate is
westwardly subducted beneath the Australasian plate (Wilson et al., 1995). The Earth’s crust is estimated to be only 15 km thick beneath the TVZ (Wilson et al.,
1995). Deeply circulating groundwater is heated and channelled to the surface through faults, fractures and permeable pathways, generating the natural
geothermal energy. The high temperature geothermal areas in the TVZ (Fig. 1) predominantly span three Dis-tricts (Taupo, Rotorua and Kawerau) and two
Regions (Bay of Plenty and Waikato).
Maori¯ legend tells that the geothermal fields in the North Island were birthed when Te Pupu and Te Hoata, tipua (goddesses) of fire, surfaced from the Earth
in search of Ngatoroirangi,¯ who had been exploring through to Mount Tongaririo and was dying of cold. They carried kete (baskets) filled with glowing embers.
Where they emerged from underground on their way from Whakaari (White Island) to Mt. Tongariro, they created geysers, hot springs and mud pools, leaving a
path of geothermal activity that remains today (Gregg et al., 1960; Tauhara Geothermal, 2015).

2.1. Legislative framework

In New Zealand, geothermal resources are not owned by the Government like petroleum and mineral reserves are (CMA, 1991). There is no present royalty
payment charge over the extracted geothermal energy. The sole right to tap and use geothermal energy, falling short of explicitly conferring ownership, is vested
in the Gov-ernment. Geothermal resources are treated as water, and their use is managed at a regional level through the Resource Management Act (1991).
Geothermal systems have been classified (Fig. 1, Table 1) in the regional planning and policy frameworks (BOPRC, 1999, 2008; WRC, 2007) into management
groups, directing the type of development allowed in/on a particular geothermal system. A summary of these regional classifications is found in Table 2.
Options range from permitted for high capacity developments, limited capacity developments, to protected from development. However, it should be noted
that limited direct use is allowed across most of the classifications.

2.2. Electricity generation

Geothermal electricity generation began in New Zealand in 1958 when the Wairakei Power Station began operation. Electricity gen-eration from geothermal
resources is well-established in 2015, with over a dozen power stations operating on seven geothermal fields. There is also one geothermal power station outside
the TVZ, at Ngawha in Northland. Geothermal electricity contributes to 17% of the nation’s annual electricity supply, from an installed capac-ity of ∼1000 MW
(Carey et al., 2015). Electricity generation is the most publically recognised industrial use of geothermal resources in New Zealand (Doody and Becker, 2011). In
many cases, direct use and geothermal power generation utilise the same geothermal source; however, electricity generation will not be addressed in this review.

Table 1
Management status of geothermal systems in the Taupo Volcanic Zone. See Table 2 for more detail on the respective field classification descriptions.

No. Geothermal area Regional council classification

Waikato Bay of Plenty

1 Kawerau Development (Group 4)

2 Rotoma—Puhi Puhi Development (Group 4)
3 Ohaaki—Broadlands Development
4 Ngatamariki Development
5 Horohoro Development
6 Rotokawa Development
7 Mokai Development
8 Wairakei—Tauhara Development
9 Mangakino Development
10 Taheke Conditional development (Group 3)
11 Tikitere—Ruahine Conditional development (Group 3)
12 Rotoma—Tikorangi Conditional development (Group 3)
13 Lake Rotokawa—Mokoia Conditional development (Group 3)
14 Atiamuri Limited development
15 Rotorua Conditional development (Group 2)
16 Reporoa Conditional development
17 Tauranga—Mount Maunganui Conditional development (Group 5)
18 Tokaanu—Waihi-Hipaua Limited development
19 Waikite Protected
20 Waiotapu Protected
21 Waimangu Protected Protected (Group 1)
22 Te Kopia Protected
23 Orakei Korako Protected
24 Tongariro Protected
 Table 2

Classification of geothermal systems by the Waikato Regional Council and Bay of Plenty Regional Council.

Category in Fig. 1 Waikato regional council Bay of Plenty regional council

Classification Description Classification Description

Protected Protected Underground geothermal Geothermal management No development. Complete

water cannot be extracted.
Surface features (valued for
their cultural and scientific
characteristics) must not
be damaged by unsuitable
land uses
Conditional/limited development Research Small takes allowed, as
well as those undertaken
for scientific research into
the system. Insufficient
data available to classify
system as development,
limited development or
protected
Limited development Takes allowed that will not
damage surface features
Small Small takes allowed only;
unsuitable for electricity
generation. Systems
contain isolated springs or
sets of springs
Development Development Large-scale uses allowed if
undertaken in a sustainable
and environmentally
responsible manner
Group 1 preservation of geothermal
resources
Geothermal management High temperature
Group 2 geothermal system;
limited and controlled
development to ensure
preservation of geothermal
features
Geothermal management High temperature
Group 3 geothermal systems
available for sustainable
use and development.
Protection of significant
geothermal surface
features and ecologies is
the major constraint on
development of these
geothermal resources
Geothermal management Low temperature
Group 5 geothermal systems
available for sustainable
use and development
Geothermal management High temperature
Group 4 geothermal systems
available for sustainable
use and development

3. Geothermal direct use

Geothermal direct use is where geothermal heat energy is used in applications other than the generation of electricity. Most processes which require input of
heat can successfully utilise geothermal heat energy directly, instead of, or as a supplement to, other fuel sources. The processes or applications that can be sup-
ported by direct use depend primarily on the temperature of the geothermal fluid available (Fig. 2).
Installations can be stand-alone (i.e. one heat source, one use) or cascaded—where applications are set up in series, each using fluids and heat from the
upstream process. Cascaded direct heat use after power generation can be problematic in New Zealand, where cool-ing of high temperature resources presents a
silica management issue. However, there are other cascade arrangement possibilities, such as using heat for direct use and then for lower temperature binary
power generation or parallel supply arrangements for direct use and generation.
As a rule, geothermal heat must be used where it is found. There are international precedents for transmission of geothermal fluids tens of kilometres (e.g.
Iceland’s district heating schemes; Ragnarsson, 2015), but there are no examples of such long distance transmission in New Zealand.

4. Current direct use in the TVZ

Geothermal direct uses in New Zealand are predominantly found in the TVZ (i.e. <98% by energy consumed, Fig. 3). The major-ity are commercial and
industrial installations near Rotorua, Taupo and Kawerau. Applications include timber drying, paper and pulp processing, space heating and cooling, bathing,
milk drying, green-house heating and aquaculture.
Bathing is the oldest use of geothermal resources, and the largest by total number of operations. Industrial process heat is New Zealand’s largest geothermal
direct heat use by energy extracted, which is dominated by a few industrial installations (e.g. timber drying, paper processing) in Kawerau. The total energy use in
2013 in the TVZ for direct use was estimated to be 8200 TJ/year, of which 4200 TJ/year was Kawerau’s industrial use (Carey et al., 2015).

5. History of direct use development in the TVZ

Geothermal direct use in the TVZ has not been a trend of steady growth nor constant development over time. Rather, geothermal energy use has had periods
of growth, decline and little or no change (Fig. 3). This reflects the impacts of the changing business environ-ments, drivers, such as other energy costs,
incentives, awareness of geothermal energy and other social and economic factors.
Published data is of variable quality, with the greatest accu-racy associated with the larger use installations, where specific measures of flow are linked to
industrial/commercial contracts for supply, and known temperature characteristics. Domestic and small bathing establishment applications are the least well
defined, with estimates often based on consented take, coupled with known resource characteristics, which is why they are not included in this review. However,
as the large commercial uses account for about 65% of the national total, the final accuracy of measurement is likely to be around ±20%, while any inter-year
trends will capture subtle changes in the large contracted supplies, and closure or drilling of shallow wells.
Fig. 3 shows the total energy use from 1950 to 2013 (Carey et al., 2015). Four different phases of growth are evident in geothermal direct use development
over the past 60 years:
1. Pre 1960: a low baseline in the TVZ (ca. 100–400 TJ/year) con-sisting of traditional use and spa tourism;
2. 1960–1980: steady growth in the TVZ due to new bathing and industrial uses (ca. 400–6000 TJ/year);
3. 1980–2000: static/low growth across the TVZ; limited devel-opment as well as loss of installations (ca. 6000–7500 TJ/year) and

4. 2000–2013/14: a mixture of growth, static use and decline depending on the region, with more diversification of applica-tions (ca. 7500–8200 TJ/year).

Direct use in the Kawerau Geothermal Field has historically dominated geothermal direct use in the TVZ, and in New Zealand. Fig. 4 plots the energy use
with time in the Kawerau Geothermal Field, and in other areas in the TVZ but outside of Kawerau. The trends observed for the TVZ’s total geothermal direct use
were not always the same changes being experienced in a given location.
The following sections present the geothermal direct use devel-opments for each period shown in Fig. 3 (i.e. pre 1960, 1960–1980, 1980–2000 and 2000–
2104). Individual installations are noted with their location, and the start/end dates (as appropriate). The data only includes selected industrial and commercial
scale develop-ments. No technical data for installations is included here.
Categories of use have also been applied to each installa-tion, consistent with the requirements for the World Geothermal Congress country updates (Lund et
al., 2010), and aligned with the approaches used in previous New Zealand geothermal assessments (e.g. Climo and Hall, 2013; White, 2009; Bromley and White,
2011). Categories used include:
1. Bathing (including balneology, commercial pools and spas);
2. Water/space heating (can also include cooling);
3. Process heat (including timber and food processing);
4. Agriculture (including greenhouses, open ground heating and animal husbandry);
5. Aquaculture and
6. Geothermal tourism.

5.1. Pre 1960

Prior to 1960, direct use of geothermal resources was relatively constant, at a low level of ca. 100–400 TJ/year. About half of the total occurred in the TVZ,
and most of the direct use was in bathing. Maori¯ have traditionally used hot springs for bathing and cook-ing since their migration to New Zealand (Stewart,
2012). Table 3 summarises historical geothermal direct use developments prior to 1960.
Many natural pools were used for bathing, some pools being dammed to create larger pools, and channels dug to bypass flow where the springs were too hot.
The late 1800’s saw a wave of spa development in New Zealand (Rockel, 1986). In the TVZ, spas were centred on Rotorua, Taupo, Wairakei and Tokaanu.
Spas were credited with curing a range of ailments. In the late 19th and early 20th centuries, there was a focus on the balneologi-cal (bath science) and
therapeutic properties of the hot geothermal waters, with the development of sanatoriums and spa facilities intended to be of national and global significance
(Stafford, 1986; Stokes, 1991). The Government’s investment in development of the Rotorua township, associated sanatorium and spas led to estab-lishment of
the world’s first government tourism department in 1901. This Department of Tourist and Health Resorts had a focus on marketing geothermal tourism (Rockel,
1986).
The Spa Hotel site in Taupo was used by the armed constabu-lary in the 19th Century, and then by visitors as accommodation, bathhouses and pools were built
during the 20th Century. The Terraces Hotel and swimming areas were developed in Taupo in the 1890s. The present pool complex was built in 1958 (now De
Bretts). This continues to be the site of a hotel, holiday accommodation and bathing pools.
A bathhouse and accommodation was first built at Wairakei in the early 1880s (Rockel, 1986) by a private developer. Natural hot pools, used historically by
Maori,¯ were developed as health spas to attract visitors and tourists throughout the late 19th and early 20th centuries. Geothermal development at Wairakei for
electricity production in the 1960s adversely affected the hot water supply to many natural hot springs in the Spa Sights (Taupo) and Wairakei Thermal Valley
areas.
The late 19th to early 20th Century also saw a wave of spa development, with a Government-supported focus on wellness at Rotorua. The first Government
bathhouse (Pavilion Bath House) was built in Rotorua in 1882 (Rockel, 1986). The Bathhouse and the Duchess Bathhouse were also constructed in the first
decade of the 20th Century. Historical records for the Rotorua area include geothermally heated convalescence hospitals for service-men returning from the First
World War. In addition, more opulent European-style amenities with tea rooms and gardens were devel-oped for pleasure-seekers and travellers of the day. The
1930s saw the construction of both the Ward Baths and Blue Baths. The med-ical focus for spa treatments continued until the late 1940s, when attitudes changed
and a “more rational and scientific outlook was required”, thus, medical treatments were moved to hospital set-tings (Rockel, 1986).
The Tokaanu baths development (south of Lake Taupo) did not have a British spa focus. The natural pools were taonga (treasure) of Ngati Tuwharetoa and
integral to their lifestyle (New Zealand Gazette and Wellington Spectator 1842), and known to and used by 19th Century travellers and locals, with hotels and
changing facili-ties appearing in the early 1900s. The first concrete bath was built by the Government in 1910 (Rockel, 1986), and further bathhouses were
constructed in the 1920s. Little change occurred to these facil-ities until the 1960s, when new baths and bathhouses were built. The present facilities were built in
the 1980s.
Fig. 2. Diagram showing potential uses for geothermal resources, as a function of the temperature required for the process (redrawn from Geothermal Education Office, US).

Fig. 3. Estimated annual energy use (TJ) since the 1950s in New Zealand (blue) and the Taupo Volcanic Zone (red). (For interpretation of the references to colour in this figure legend, the reader is
referred to the web version of this article.)

Table 3
Historic geothermal direct use developments (pre-1960).

Start date Close date Operation/event Location Category of use

1869 Spa Hotel Taupo Bathing

1880s 1960s Pools at Wairakei (various) Wairakei Bathing
1882 1930a Pavilion Bathhouse Rotorua Bathing
1890s Terraces Hotel (De Bretts) Taupo Bathing
1900s Tokaanu Baths Tokaanu Bathing
1901 1930 Duchess Bathhouse Rotorua Bathing
1908 1966 The Bathhouse Rotorua Bathing
1931 1972b Ward Baths Rotorua Bathing
1931 1982c Blue Baths Rotorua Bathing
1930sd Wairakei Resort Wairakei Water/space heating
mid-1950s Paper machines & sawmill Kawerau Process heat
1955 Kawerau pool complex Kawerau Bathing
a Replaced by the Ward Baths. b

Became the Polynesian Pools. c

Reopened 1999.
d
A hotel was at Wairakei since 1880s.
Fig. 4. Estimated annual energy use (TJ) since the 1950s in the Taupo Volcanic Zone (blue), Kawerau (green), and areas in the Taupo Volcanic Zone but outside of Kawerau (purple). (For
interpretation of the references to colour in this figure legend, the reader is referred to the web version of this article.)

It is possible to trace the experience gained from drilling shallow domestic wells in Rotorua, to drilling a well to heat the Wairakei Hotel, to successful
attempts to drill more and larger-scale wells at Wairakei for electricity development. This large-scale government funded geothermal exploration at Wairakei was
paralleled with exploration at Kawerau, for which geothermal heat for industrial processing was introduced in the late 1950s.
This exploration was supported by New Zealand Government incentives to develop a newsprint industry. Kawerau was cho-sen due to its proximity to a river,
forestry resources, geothermal resources, and plans for a railway extension to the port of Tauranga (Bolton, 2015; White and Chambefort, 2016). Geothermal
wells were drilled in the early 1950s, and the first paper machine began operation in 1955, and the sawmill in 1956. Geothermal steam was supplied to operations
including drying kilns, wood preparation plant and chemical plant. A local swimming pool complex, heated by geothermal steam passing through a heat
exchanger, was also constructed in 1955 (Bloomer, 2015).

5.2. 1960–1980
A period of strong and steady growth occurred in geother-mal direct use between the early 1960s and late 1980s. The total energy use during this time
increased from approximately 200–6000 TJ/year. Table 4 summarises the major new geothermal direct use development during this period.
There was a number of new pool developments, and some upgrading and reconstruction of existing bathing facilities. In the 1960s, the upgraded AC Baths in
Taupo were opened and the Tokaanu baths were rebuilt. When the Rotorua Bathhouse was closed (1966), geothermal spa treatments began in a new wing at the
Queen Elizabeth Hospital (Rockel, 1986). In the 1970s, the Ward Baths in Rotorua were redeveloped and opened as the Polynesian Pools (Rockel, 1986), and a
new geothermal bathing establishment was constructed at Waikite (Waikite Valley Thermal Pools, 2015). Rotorua Hospital began using geothermal resources for
hot water and space heating in 1977 (Steins and Zarrouk, 2012).
Electricity generation from geothermal resources in the late 1950s created some opportunities to also access geothermal energy for direct uses. The
development of the Wairakei Geothermal Field provided geothermal heat for cooking, bathing and space heating at the Wairakei Resort.
This connection between drilling programmes for electricity development and geothermal direct use developments continues today. In some cases, direct use
developments have been used as a means of gaining greater social acceptance of the larger electric-ity project. One example is the development of a greenhouse at
Ohaaki during the period of field testing (White, 2006b). Direct use applications such as greenhouses are more people-intensive than an operational power station,
so assist in creating employ-ment. The Ohaaki greenhouse helped to bring people back to the land in this rural community but a suitable experienced operator
could not be found to take it over around the time of power station commissioning (Stokes, 2003).
At Waiotapu, the New Zealand Government funded the drilling of geothermal exploration wells in the 1950s, but results were not sufficient to undertake
electricity production at the time (Bolton, 2015; White and Chambefort, 2016). While most of these wells were sealed in the 1970s, some geothermal direct use
develop-ments continued. One well supplied the Waiotapu Hotel for space heating, and a new well was drilled to supply Arataki Honey’s site with heat for
processing, space heating and domestic use (WRC, 2014).
The Government also funded a drilling programme at Ohaaki-Broadlands from the mid-1960s (Bolton, 2015; White and Chambefort, 2016). In parallel with
burgeoning plans for an elec-tricity generation development, direct use applications were also developed at Ohaaki. A lucerne drying plant (Broadlands Lucerne
Co.; Pirrit and Dunstall, 1995) and timber drying operation (Hickson Kilns) were commissioned.
At Kawerau, since the 1950s the long-term trend has been an increase in energy use. However, this is variable, as the demand for geothermal steam in
Kawerau has changed due to operational, market and production factors. The steamfield in Kawerau has been designed and operated to manage the changing
demand (Bloomer, 2011). Large increases in energy use were common, and new oper-ations were introduced, occasionally limited by available supply for which
new drilling programmes were required. For example, a small geothermal steam turbine with heat exchangers was com-missioned in 1960. Additional paper
machines were commissioned in the 1960s and 1970s.
Table 4
Major geothermal direct use developments 1960–1980.

Start date Close date Operation/event Location Category of use

1960s Queen Elizabeth Hospital Rotorua Bathing

1960s Tokaanu Baths (rebuilt) Tokaanu Bathing
1908 1966 The Bathhouse Rotorua Bathing
1962, 1975 Paper machines Kawerau Process heat
Late 1960s AC Baths Taupo Bathing
1972a Polynesian Pools Rotorua Bathing
1972 Early 2000s Broadlands Lucerne Co.b Ohaaki Agriculture
1972 2001 Hickson Kilns Ohaaki Process heat
1970s Arataki Honey Waiotapu Process heat
1970s Waiotapu Tavern Waiotapu Water/space heating
1975 Waikite Pools Waikite Bathing
1977 Rotorua Hospital Rotorua Water/space heating
a Was Ward Baths.
b Became Taupo Lucerne Ltd.

5.3. 1980–2000
The period between 1980 and 2000 was a low growth period overall for the TVZ as a region. However, this was spatially variable, with some areas showing
growth, and other areas experiencing decline. Table 5 summarises the major geothermal direct use devel-opments during this period.
Major growth in direct use during this period occurred at Kaw-erau. Between 1980 and 2000, Kawerau’s direct geothermal energy use increased from around
3000–5000 TJ/year. At Kawerau, new heat exchangers were added (Hotson, 2007) and additional timber drying kilns were constructed in the 1980s; supplied with
geothermal steam (Bloomer, 2011). Two geothermally-heated greenhouses were also constructed in the Kawerau steamfield in 1982 and 1994 to grow capsicums
(Dunstall and Foster, 1998). These were shut down in the early 2000s.
Outside Kawerau, the trend was more variable. Up to the mid-1980s, there was steady growth with geothermal use increasing from ca. 3000–3500 TJ/year.
However, in late 1980s there was a government-enforced bore closure programme in Rotorua (Jenkins, 1987; Scott and Cody, 2000). This was introduced in
response to a decline in the natural hydrothermal surface activity, especially the hot springs and geysers in the Whakarewarewa Geothermal Field.
The Whakarewarewa geothermal area is an iconic centre of natural geothermal features and Maori¯ culture in New Zealand (Nielson et al., 2010). In 1967 the
Government established the New Zealand Maori¯ Arts and Crafts Institute (now Te Puia) due to the impending threat of the loss of traditional Maori¯ arts. This
was purposely sited at Whakarewarewa to enable access to the tourist market. The continuation of the natural surface activity in this area is vital for Rotorua
tourism, a significant sector of the Rotorua econ-omy (Simmons and Fairweather, 2000).
By the mid-1980s, fluid extraction from the Rotorua Geothermal Field had increased to over 30,000 t/day (Scott et al., 2016; Allis and Lumb, 1992). This was
able to occur due to loose regulation imposed during the 1960–1970s. As a result, the natural hydrother-mal activity had reached an all-time low, fluid outflows
from the Rotorua Field were severely reduced and the natural geothermal geyser activity at Whakarewarewa Area had stopped (Scott et al., 2016).
A Government enforced bore closure programme began around 1986; introducing a total ban on geothermal fluid extraction within a 1.5 km radius
(“exclusion zone”) of Pohutu Geyser in the Whakarewarewa geothermal area. This change resulted in an esti-mated reduction of 1000 TJ/year of geothermal
energy use (Fig. 4). It reduced withdrawal of geothermal fluids in the area by 60% (Scott and Cody, 2000), reducing the number of shallow bores from ca. 370–
140 (Mroczek et al., 2011). Geothermal fluid extraction from the field was reduced to around 10,000 t/day (Allis and Lumb, 1992; Scott and Cody, 2000).
By 2000, the natural geothermal outflows in the Rotorua Geothermal Field had recovered to levels last seen in the 1950s, while others showed mixed
responses (Scott et al., 2016). The bore closure programme was coupled with a punitive licensing fee arrangement that extended to other fields, which may have
led to the closure of wells in places like Taupo (or the unofficial use of these wells). Geothermal fluid extraction and the use of down hole heat exchangers in
Rotorua are still allowed (Table 2), however all bores must now be registered and consented for a sustainable use.
In the 1980s and 1990s, there were some bathing developments in Rotorua outside the exclusion zone. The local council upgraded and developed the
geothermally-heated Rotorua Aquatic Centre (Rotorua Lakes Council, 2015), and the Blue Baths were restored and reopened in 1999, after being closed for 17
years (Blue Baths, 2015).
Closer to Taupo, direct use diversified and generally grew through this period. The Taupo Plant Nursery began using heat supplied from the Wairakei–
Tauhara geothermal system (Contact Energy, 2010). At Ohaaki, the lucerne drying operations contin-ued, and a greenhouse operation was trialled by the
Government’s Department of Scientific and Industrial Research (White, 2006b). A new timber drying operation (Ohaaki Thermal Kilns) using geother-mal
energy was established in 1988 (NZ Companies Office, 2015). A timber drying operation utilising geothermal energy was also installed near Rainbow Mountain
(Ramsey Roundwood), but was converted to fuel sources in the late 1980s (Wood, 1983).
In the 1980s a geothermally heated greenhouse (Geotherm Exports) was developed at Poihipi, near Taupo, to grow orchids for export to Japan (McLachlan,
1998). This operation utilised a Government drilled geothermal exploration well, but the business closed in the late 2000s. A geothermally-heated greenhouse
(Gey-serland Orchids) was also developed on the Horohoro geothermal field to grow orchids (NZ Companies Office, 2015).
The Taupo region saw a resurgence of direct use at Wairakei. A prawn farm was established in 1987, taking advantage of waste heat from the nearby Wairakei
Geothermal Power Station (Lund and Klein, 1995). Developments at the Wairakei Terraces also occurred to include silica terraces, a geothermal walk and Maori¯
cultural experience, essentially restoring a surface experience that had been lost from the Wairakei Geyser Valley due to the electricity development on the
Wairakei Geothermal Field.
Table 5
Major geothermal direct use developments 1980–2000.

Start date Close date Operation/event Location Category of use

Early 1980s Late 1980s Ramsey Roundwood Waiotapu Process heat

Early 1980s Taupo (Native) Plant Nursery Taupo Agriculture
1980s 1980s Experimental greenhouse Ohaaki Agriculture
1981 Late 2000s Geotherm Exports Wairakei Agriculture
1982 Early 2000s Geothermal Greenhouses Kawerau Agriculture
1980s Timber drying & heat exchangers Kawerau Process heat
1987 Wairakei Prawn Farm Wairakei Aquaculture
Various 1986–1987 Rotorua bore closure Rotorua Water/space heating
1988 Rotorua Aquatic Centre (upgrade) Rotorua Bathing
1988 Ohaaki Timber Kilns Ohaaki Process heat
1996 Wairakei Terraces Wairakei Process heat; tourism
1997 2002a Geyserland Orchids Horohoro Agriculture
1999 Blue Baths Rotorua Bathing
a Became Plentyflora.

5.4. 2000–2014
Table 6 summarises the major new geothermal direct use development since 2000. This period saw significant growth in geothermal resource use for
electricity generation in the TVZ, with the installed capacity growing from 430 MW to ∼1000 MW. The annual geothermal electricity production grew from ca.
2700 GHW to 7000 GWH during this time (Carey et al., 2015).
This resurgence of investment in geothermal electricity was driven by increasing energy demand, economics and government focus on renewable energy, and
had flow on effects for direct geothermal use. This has included major geothermal developers supporting commercially attractive, large scale direct use projects,
such as the heat supply to the Tenon timber drying kilns. Direct use has also supported strategic resource management goals for field developers. For example, the
geothermal fluids supplied to the Wairakei Prawn Farm and Wairakei Terraces from the Wairakei Power Station assist the field developer to manage their fluid
discharge regime. Maori land-owning trusts are also recognising the commercial value of direct geothermal heat supplies. This recogni-tion has seen the
development of the Gourmet Mokai glasshouses and Miraka milk drying factory on the Mokai Geothermal Field, and the conversion of a tissue making process at
Kawerau from natural gas to geothermal heat. Awareness and interest has also increased from local, regional and central government agencies from an eco-nomic
development context.
Geothermal direct use at Kawerau remained steady, at around 5200 TJ/year, until the end of 2012 when a paper machine was decommissioned due to falling
global demand for newsprint. This closure reduced the geothermal direct use at Kawerau back to pre-1990s energy use levels (ca. 4200 TJ/year), with steam being
diverted to electricity generation projects. Geothermal energy is increasingly being used for electricity generation on the Kawerau Geothermal Field, with over
135 MW of plant being constructed since 2007 (Bloomer, 2015). However, there were also some new direct use developments in the Kawerau steamfield. Clean
steam was first provided for a tissue making process in 2011 to the SCA Hygiene plant, and in 2015 a new timber drying operation will com-mence using
geothermal steam (Bloomer, 2015). Ngati Tuwharetoa Geothermal Assets Ltd., who now actively manage several of the steam supplies on the field, are actively
looking for new direct use applications and have secured consents for an increased supply ready for new commercial applications.
Outside of Kawerau, geothermal direct use has generally steadily increased, with a growth from 2500 TJ/year to 4000 TJ/year. Closures included the lucerne
drying operation (NZ Companies Office, 2015) and a geothermally-heated timber drying kiln (Hick-son kilns) in the early 2000s at Ohaaki, although the larger
kiln operation (Ohaaki Timber Kilns) at Ohaaki has subsequently been expanded.
There was also been a diversification of industrial-scale process heat uses. Geothermal energy started supplying a timber drying plant in Taupo (Tenon) in
2006 (GNS Science, 2011; Contact Energy, 2010). A milk drying and processing operation was established (Miraka) at Mokai in 2010 (Tuaropaki Trust, 2015).
New geother-mal wells were drilled to extend the capacity of the Arataki Honey and Waiotapu Tavern operations on the Waiotapu Geothermal Field (WRC,
2014).
In agricultural use, two large geothermally-heated glasshouses, totalling 12 ha, were commissioned on the Mokai Geothermal Field in 2002 and 2007,
growing capsicums and tomatoes (Gourmet Mokai, 2015; Tuaropaki Trust, 2015). Also, the geothermally-heated greenhouse at Horohoro was redeveloped (as
Plentyflora) to grow gerberas (NZ Companies Office, 2015).
In Rotorua, an under-street heating project (“Eat Streat”) was created to promote year round outdoor “alfresco” dining in one of the city’s main streets (Thain
and McGrath, 2014; Rotorua, 2015).
In addition, Rotorua’s indoor sports arena began using geothermal energy for space heating during the winter and for hot water sup-plies year round. In
Taupo, expansions were also undertaken on existing geothermal supplies, including the AC Baths system and Taupo Hospital system.
Additionally, bathing in geothermal waters and geothermally-heated waters continues to grow in popularity. Facilities, such as water slides have been added as
tourist attractions. In some facil-ities, geothermal bathing is offered alongside geothermal tourist
walks and showcasing Maori¯ traditional knowledge and culture. This adds character to some of the redeveloped pools, such as the Hell’s Gate Wai Ora Spa
(Rotorua), Tokaanu Thermal Baths and the Wairakei Terraces. The spa concept is also being revived, with health and beauty treatments on offer at former
Government spas, such as the Polynesian Spa in Rotorua.
Table 6
Major geothermal direct use developments since 2000.

Start date Close date Operation/event Location Category of use

1972 2001 Hickson kilns Ohaaki Process heat

1972 Early 2000s Taupo Lucerne Ltd.b Ohaaki Process heat
2002, 2007 Gourmet Mokai Mokai Agriculture
2005 Indoor Sports Arena Rotorua Water/space heating
2006 Tenon kilns Taupo Process heat
2010 Taupo Hospital Taupo Water/space heating
2010 Plentyfloraa Horohoro Agriculture
2011 SCA Hygiene Kawerau Process heat
2011 Miraka Mokai Process heat
1960s 2012 Paper machine Kawerau Process heat
2014 Eat Streat Rotorua Space heating
2015 Sequal Lumber kilns Kawerau Process heat
a Was Geyserland Orchids.
b Was Broadlands Lucerne Co.

6. Conclusion
The TVZ is the centre of direct geothermal heat use in New Zealand. Commercial and industrial developments have occurred in the geothermal fields at
Wairakei, Tauhara, Ohaaki, Kawerau, Rotorua, Waiotapu, Tokaanu and Horohoro. The overall trend since the late 1950s has generally been one of growth and
diversification. However, locally there have been times of growth, little change and decline in geothermal direct use. Direct use currently accounts for some 8600
TJ/year energy use in New Zealand.
In the future, there is an opportunity to grow and further diver-sify New Zealand’s direct use, to create new businesses, and to relocate existing businesses into
geothermally-rich districts to ben-efit from this renewable heat energy supply. There is also the potential to convert more industries from fossil fuel supply to
geothermal energy.
To support this development, it would be beneficial to improve the data quality and quantity for past and existing operations. This would include filling the
known data gaps, such as the motels/hotels, as well as incorporating a wider range of technical data.
Increased use of geothermal energy is relevant in the current context of long term increasing energy costs and environmental performance. Geothermal direct
use will assist in meeting New Zealand’s energy needs and contribute to economic and social development.