A scientific team that drilled into the South Island's Alpine Fault has discovered surprisingly high temperatures and the potential for large geothermal resources.
Lead scientist Professor Rupert Sutherland, from Victoria University, says the extreme activity was unexpected.
"Nobody on our team, or any of the scientists who reviewed our plans, predicted that it would be so hot down there," he said.
"This geothermal activity may sound alarming, but it is a wonderful scientific finding that could be commercially very significant for New Zealand."
He said it was too early to say how big or how hot the resource might be.