---
title: Geothermal Direct-Use Heating for Agriculture
type: technology
url: "https://www.envisioning.com/research/grid/australia-nz__geothermal-direct-use-heating"
hub: grid
summary: New Zealand is expanding geothermal direct-use heating for greenhouse horticulture, timber drying, and aquaculture — displacing fossil fuels with zero-emission heat in the Taupo/Bay of Plenty region.
---

# Geothermal Direct-Use Heating for Agriculture

New Zealand is expanding geothermal direct-use heating for greenhouse horticulture, timber drying, and aquaculture — displacing fossil fuels with zero-emission heat in the Taupo/Bay of Plenty region.
- Technology Readiness Level: 8/9
- Impact: 2/5
- Investment: 3/5
New Zealand is developing web-based tools and incentive programs to help greenhouse growers transition from fossil fuel heating to geothermal direct-use, particularly in the Taupo Volcanic Zone and Bay of Plenty regions. Geothermal direct-use — applying hot water and steam directly to industrial and agricultural processes without converting to electricity — is significantly more efficient than electricity generation, capturing 90%+ of the thermal energy. Applications include greenhouse heating, timber kiln drying, prawn farming, and milk pasteurization.

New Zealand's geothermal strategy explicitly targets expanded direct-use applications as a pathway to decarbonize regional industries. The country's existing geothermal fields produce hot water at temperatures suitable for most industrial heating applications (80-180°C), and the geographic concentration of horticulture and forestry near geothermal resources in the central North Island creates a natural synergy. The government's 'From the Ground Up' strategy launched in July 2025 includes direct-use expansion as a near-term priority.

Direct-use geothermal represents a lower-risk, lower-cost complement to the high-profile supercritical drilling program. While supercritical technology aims for breakthrough energy production, direct-use heating delivers immediate emissions reductions using proven technology. For New Zealand's agricultural export industries — facing increasing pressure from trading partners to demonstrate low carbon footprints — geothermal-heated greenhouses and processing facilities offer a competitive advantage that fossil-fuel-dependent competitors cannot easily replicate.

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Source: Envisioning — Technology Research Institute (https://www.envisioning.com/research/grid/australia-nz__geothermal-direct-use-heating)