Powering the Philippines’ 2040 Energy Vision: How New Zealand-Philippines collaboration drives geothermal innovation

The Philippines and New Zealand are deepening geothermal collaboration ahead of their 60^th diplomatic anniversary in 2026, in line with plans to elevate bilateral relations into a comprehensive partnership. Underscoring the renewed commitment between the two countries, Western Energy, New Zealand’s largest geothermal well services provider, recently opened its first office in the Philippines, expanding its regional presence and highlighting growing synergy in advancing sustainable energy solutions.

Clean, reliable, and affordable energy is central to the Philippines’ growth agenda, outlined in AmBisyon Natin 2040 and the Philippine Development Plan 2023-2028. With geothermal energy being vital to this vision, New Zealand’s expertise as a global pioneer makes it an invaluable partner.

“A clean energy future is integral to our development goals. Through the Philippine Energy Plan 2023-2050, we aim to achieve 50% renewables by 2040, which will cut emissions, boost energy independence, and meet rising demand from emerging technologies like artificial intelligence (AI),” Sharon Garin, Secretary of the Department of Energy (DoE), said.

“The Philippines, ranked third globally in geothermal capacity, has vast potential but faces high costs and exploration risks. Through reforms and initiatives like the Green Energy Auction Programme (GEAP) to boost investor confidence, and the Philippine Geothermal Risk Facility (PGRF) to offset upfront drilling costs, we aim to attract private investment and unlock geothermal’s full potential to drive growth, create jobs, and enhance energy security,” Rowena Christina Guevara, Undersecretary of the DOE, added.

“New Zealand has been a pioneer in geothermal technology since the 1950s, and our geothermal journey with the Philippines has been a constant thread in our bilateral relationship. As we mark 60 years of ties and move towards a comprehensive partnership in 2026, geothermal energy will be a crucial pillar,” Dr. Catherine McIntosh, New Zealand Ambassador to the Philippines, said.

Powering the Future, Together

The New Zealand-Philippines geothermal partnership, formalised in 2012 and renewed in 2017 and 2021, builds on cooperation dating back to the 1960s with the development of the Tiwi and Tongonan geothermal fields. Today, New Zealand continues to support three geothermal fields, including Palimpinon.

Guiding its continued collaboration with the Philippines to share expertise, foster joint research, and cultivate the next generation of industry leaders, the New Zealand Government recently launched its Draft Geothermal Strategy, developed with the New Zealand Geothermal Association (NZGA), combining the insights of communities, scientists, and the industry.

“Backed by world-class research and a stable energy market, New Zealand’s geothermal power delivers reliable baseload energy that reduces emissions. With new supercritical geothermal technology, we can utilise deeper resources to help the Philippines advance its clean energy goals,” said Cecilia Shand, New Zealand Trade Commissioner to Indonesia and the Philippines.

The opening of Western Energy’s office in Manila, supported by New Zealand’s largest geothermal power firm, Contact Energy, marks a new chapter in the partnership.

“We are excited to bring the same technology, know-how, and expertise to the local industry. Our top priority is to build relationships and be an active part of the Philippine geothermal sector,” Angus Howden, International Business Development Manager, Western Energy, said.

“Contact Energy’s extensive experience offers adaptive management to support Western Energy’s clients and spot collaboration opportunities,” added Matt Sophy, Senior Engineer, Geothermal Development, Contact Energy.

Advancing Geothermal Innovation

This strengthened cooperation was showcased at the 6^th Philippine International Geothermal Conference (PIGC6), hosted by the National Geothermal Association of the Philippines (NGAP) in partnership with the DoE and New Zealand Trade and Enterprise (NZTE). Leading New Zealand geothermal companies and institutions highlighted their expertise and contributions to the Philippine sector, emphasising innovation, knowledge-sharing, and capacity-building.

With cutting-edge technology transforming geothermal development, JRG Energy and Seequent are introducing advanced solutions to enhance the Philippines’ capacity and accelerate its clean energy transition.

JRG Energy, a pioneer in well cleaning and productivity solutions, is expanding its technical studies and well servicing capabilities in the Philippines. “Geothermal is a major solution to global decarbonisation, and the Philippines has fantastic resources to provide low-cost energy while helping decarbonise the country. Our advanced geothermal solutions maximise 24/7 baseload power, accelerating the transition to a low-carbon future,” Callum Streeter, General Manager, JRG Energy, said.

AI and machine learning are also reshaping geothermal development. Seequent, the subsurface software arm of Bentley Systems, powers over 65% of the world’s geothermal capacity and has worked with Philippine operators for nearly a decade. “Geothermal requires long-term thinking and strategic use of technology. Our AI-powered software allows operators to identify steam zones and optimise production, reducing costs and risk,” Andrew McMahon, Principal Solutions Manager, Energy Production, Bentley Systems, explained.

Nurturing Human Ingenuity

Talent development remains at the core of the partnership. The University of Auckland’s Geothermal Institute has trained hundreds of Filipino geothermal professionals since 1978, many of whom now lead innovation across the sector. “We believe that knowledge is power. As a real renaissance is happening in geothermal, we need more experts and multidisciplinary teams to deliver ambitious projects, and our graduates are making this possible,” said John O’Sullivan, Co-Director, Geothermal Institute.

MB Century, with 75 years in geothermal and hydropower, has provided end-to-end technical solutions across Philippine plants since opening its office in 2018. “Our goal is to offer a full range of services, from well design to turbine assembly, while creating opportunities for Filipino employees to grow internationally,” said Alan Stewart, CEO, MB Century.

Earth Sciences New Zealand, formerly GNS Science, has been advancing global geothermal exploration since the 1950s. “To unlock the Philippines’ geothermal potential, it is crucial to blend indigenous knowledge with technology, beginning with understanding the needs of communities, whether corporations, governments, or indigenous groups,” said said Mark Gibson, Senior Business Development Manager, Earth Sciences New Zealand.

With supportive policies, investment programmes, and strong international partnerships, the Philippines’ geothermal sector is well-positioned for growth. By leveraging New Zealand’s expertise, the country can secure its energy future, create green jobs, and accelerate its transition to clean energy.

Spotlight is BusinessWorld’s sponsored section that allows advertisers to amplify their brand and connect with BusinessWorld’s audience by publishing their stories on the BusinessWorld Web site. For more information, send an email to online@bworldonline.com.

Join us on Viber at https://bit.ly/3hv6bLA to get more updates and subscribe to BusinessWorld’s titles and get exclusive content through www.bworld-x.com.