CenterPoint Energy advances networked geothermal pilot project to support year-round customer energy needs and Minnesota decarbonization efforts

As part of the Company’s efforts to implement its innovation plan, CenterPoint Energy has selected the joint team of Resource Innovations and Salas O’Brien to help advance the company’s networked geothermal pilot project, supporting site selection and the system feasibility study. The joint team brings expertise in developing utility thermal energy network strategies and networked geothermal and district energy systems, including in Minnesota.

A networked geothermal system can provide heating and cooling to multiple residential, commercial and public buildings connected by underground water pipes and electric heat pumps, using the relatively constant temperature of the earth. This system will be designed to pull warmth into buildings in colder conditions and provide cooling by pumping heat into the ground during warmer weather.

“CenterPoint looks forward to developing our first networked geothermal system in Minnesota to demonstrate how this technology could support customers in both winter and summer while helping meet the state’s decarbonization efforts,” said Brad Steber, CenterPoint Vice President, Minnesota Gas. “We remain committed to advancing innovation for Minnesota’s energy future, while maintaining safe, reliable and resilient energy service for the customers and communities we’re privileged to serve.”

Since launching this pilot in late 2024, CenterPoint has been working with local governmental entities to garner interest in collaborating on this project. Over the coming months, CenterPoint expects to conduct siting and modeling efforts to identify a preferred site.

In addition to this pilot project, the company is offering incentives for large customers to partially offset costs to research, install and operate their own networked geothermal systems, as well as seeking opportunities to decarbonize existing district energy systems in a community CenterPoint serves.

CenterPoint’s innovation plan

This project is part of CenterPoint’s five-year innovation plan submitted under Minnesota’s Natural Gas Innovation Act (NGIA). The NGIA enables natural gas utilities to invest in renewable energy resources and innovative technologies to help reduce Minnesota’s greenhouse gas (GHG) emissions.

The Minnesota Public Utilities Commission approved CenterPoint’s innovation plan in 2024, which includes 17 pilot projects and seven research and development efforts. This innovation plan is expected to reduce or avoid an estimated 1.1 million tons of carbon emissions over the lifetime of the projects – equivalent to the annual energy use of approximately 150,000 homes.

CenterPoint is committed to helping residential and business customers reduce GHG emissions attributable to their end-use of natural gas by 20-30% by 2035 (from a 2021 baseline). The company’s innovation plan is designed to support customers in reducing emissions from their own energy use.

Visit CenterPointEnergy.com/FutureMN to learn more.