Key Takeaways

• CenterPoint Energy is launching its first networked geothermal pilot project in Minnesota, partnering with Resource Innovations and Salas O’Brien.
• The networked geothermal system will use underground heat transfer to decarbonize building climate control across multiple locations.
• Incentives are being offered to support commercial and industrial customers who opt for networked geothermal systems, with Minneapolis aiming for carbon neutrality by 2050.

Project Details and Goals

CenterPoint Energy is moving forward with its first networked geothermal pilot in Minnesota, having selected Resource Innovations and Salas O’Brien to assist with site selection and feasibility studies. Since the project’s conceptualization last year, CenterPoint has sought local government collaboration and expects to pinpoint a suitable site in the coming months.

The pilot is part of a broader five-year innovation plan under Minnesota’s Natural Gas Innovation Act, which includes 17 pilot projects and initiatives focused on renewable natural gas, green hydrogen, and hybrid heating systems. The networked geothermal system aims to harness the Earth’s stable temperature for heating and cooling multiple buildings within a defined area, utilizing underground water pipes and heat pumps.

This method of climate control, referred to as a thermal energy network or district energy system, has seen adoption in municipalities across North America and Europe. However, U.S. utilities have been slower to embrace the technology, with Eversource Energy recently launching the first utility-owned networked geothermal system in Framingham, Massachusetts.

As of now, eight U.S. states, including Minnesota, have policies supporting thermal energy network development. Minnesota’s Natural Gas Innovation Act, enacted in 2021, enables utilities to explore renewable energy investments and innovative technologies.

CenterPoint manager Emma Ingebretsen emphasized that the pilot project represents an opportunity to learn from these systems. While the company has received expressions of interest from communities, no specific customers have been disclosed. The utility anticipates having the pilot operational by the end of its five-year innovation plan, pending the outcome of the feasibility study.

Initial studies will review potential sites in interested communities, with follow-up analyses to assess costs and impacts on shortlisted locations. Ideal sites will likely host a diverse mix of residential and commercial buildings, often centered around an “anchor customer” with substantial energy requirements.

CenterPoint is incentivizing businesses to consider networked geothermal systems through rebates that help mitigate the costs associated with research, installation, and operation. These incentives could assist in retaining larger customers, such as the city of Minneapolis, which aims for carbon neutrality by 2050 and renewable electricity sourcing by 2030.

Ingebretsen also pointed out that CenterPoint is eager to work with customers on existing district energy systems, offering rebates to facilitate the transition to low-carbon technologies. The company’s Minnesota area already includes district energy networks serving several buildings in downtown Minneapolis, where efforts to electrify equipment and consider renewable natural gas have been complicated by logistical and financial challenges.

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