Geo40, Contact Energy and the Ngati Tahu Tribal Lands Trust are teaming up as part of a world-leading sustainable energy project.
Set to start this month, the operation will see Geo40 use its technology to commercially extract silica from geothermal fluid used at Contact Energy's Ohaaki power station.
Up to 10,500 tonnes of high grade silica is expected to be sourced from Ohaaki each year, most of which will be exported overseas and sold to manufacturers for use in every day consumer goods.
John Lea, Geo40 chief executive, said the deal gives Geo40 access to a valuable mineral without harming the environment.
"Ohaaki's geothermal fluid enables us access to a valuable mineral without harming the environment," Lea said.