The CenterPoint Energy networked geothermal pilot project represents an emerging effort by a major gas utility to explore thermal energy networks as part of a long-term decarbonization strategy for buildings.
The pilot is designed to evaluate how underground geothermal loop systems can provide shared heating and cooling to multiple buildings through a utility-managed network. Instead of relying solely on natural gas infrastructure, thermal energy networks circulate water through buried pipes that exchange heat with the ground, delivering efficient space heating in winter and cooling in summer.
CenterPoint Energy’s pilot aims to test how this model could be integrated into existing utility operations. The project examines several key factors including system performance, installation costs, customer participation, and regulatory considerations. By studying these elements in a real-world setting, the utility hopes to better understand how geothermal networks could complement or gradually transition portions of traditional gas distribution systems.
Like similar pilots underway across the United States, the CenterPoint project reflects a broader industry shift as utilities evaluate new infrastructure models capable of reducing emissions while continuing to deliver reliable thermal energy services. If successful, networked geothermal systems could allow utilities to maintain their role as energy providers while supporting state and local climate goals.
The findings from this pilot will help inform future utility planning, regulatory discussions, and the potential expansion of thermal energy networks serving neighborhoods, campuses, or commercial districts.
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.
