17 pilot projects and seven research and development projects
COMMUNITY CONNECT · VIRTUAL OPEN HOUSE
Heating and cooling from the ground up
CenterPoint Energy is exploring a networked geothermal pilot in Minnesota.
Learn how it works, what it could mean for your community and how to share your feedback.
02 — Purpose
To innovate for our customers and communities
At CenterPoint Energy, we believe Minnesota’s energy future can be cleaner while remaining safe, reliable and cost-effective. We’re pursuing innovative technologies and cleaner energy options for our customers.
Our plan was approved by the Minnesota Public Utilities Commission under the state’s Natural Gas Innovation Act, or NGIA. The NGIA allows natural gas utilities to invest in cleaner energy and new energy technologies that can help reduce emissions.
Investments in Midwest-made low- and zero-carbon energy
New and emerging technologies designed to help lower emissions to benefit our Minnesota customers
Our innovation plan allows us to explore different ways to reduce emissions and better understand how these projects can potentially benefit customers. Through pilot projects, we’re able to demonstrate technologies in a more cost-effective way, while also investing to help scale them across the industry.
Renewable natural gas
Made by recycling organic waste from farms, food, yard clippings and other materials to create renewable energy that can be used directly in place of conventional natural gas, using the existing natural gas delivery system
Green hydrogen
Produced by splitting water into oxygen and hydrogen using renewable electricity. When blended with natural gas, this reduces the carbon content of the fuel delivered to customers’ homes and businesses without needing appliance or equipment changes
Networked geothermal
A connected system of underground water pipes, electric heat pumps and heat exchangers that uses the Earth’s relatively constant temperature to heat buildings in winter and cool them in summer
Hybrid heating
Electric heat pumps paired with supplemental natural gas to reduce overall energy use and maintain efficiency, especially on the coldest days
Carbon capture
Technologies that capture carbon dioxide
Industrial programs
Incentives for large industrial process customers to help improve efficiency and reduce emissions for high-heat processes
Reducing an estimated 1.1 million tons of carbon dioxide emissions over the life of the projects — about the same as the annual energy use of 150,000 homes
Continuing to prioritize safe, reliable service for customers that can support them on winter’s coldest days
Investing in cleaner energy made in Minnesota and the Midwest
Connecting customers with new and emerging technologies to support them in reducing their own emissions
Creating renewable energy from organic waste
Sharing lessons learned from our innovation plan across the energy industry
03 — How it works
Networked geothermal, in motion
A networked geothermal system uses wells, pipes, pumps and heat exchangers to connect multiple buildings to the Earth’s underground temperature, helping provide stable, efficient heating and cooling year-round.
The Earth has a relatively stable underground temperature year-round.
In summer, the system moves heat out of buildings to below ground, efficiently cooling them down.
In winter, the system uses heat naturally stored below ground and moves it through water pipes, helping warm buildings.
04 — Project goals
A pilot to learn how it performs here
CenterPoint Energy plans to develop a networked geothermal pilot in one of three Minnesota communities currently under consideration: Bloomington, Brooklyn Center or Orono.
Provide year-round heating and cooling through one stable, efficient system.
Use the Earth’s relatively stable underground temperature.
Install electric heat pumps and water pipes at customer locations.
Serve a mix of residential, commercial and public buildings.
Build a system with potential for future expansion.
Offers year-round comfort during Minnesota’s coldest winter days and hottest summer days
Shares excess heat or cooling among connected buildings for more efficient heating and cooling
Provides a more efficient and stable system compared with traditional electric heating and air-source heat pumps
Reduces emissions from participating customers’ energy use
Completes energy efficiency and equipment upgrades at no cost in participating buildings where needed
Typical costs to develop, build and operate this type of system
Customer feedback about participating in the pilot
Typical costs for energy efficiency improvements to participating buildings
How the system performs during Minnesota winters
05 — Site selection
84 sites, 42 communities, three locations under consideration
We worked through a detailed review process to narrow the options. We currently expect to select one final project site in early 2027 where we will propose to construct the project.
0
Potential sites evaluated across our Minnesota service area.
0
Communities invited to express interest in the pilot.
0
Finalists selected for continued site-feasibility work.
Worked with geothermal energy experts
Invited Minnesota communities to express interest
Reviewed feedback and interest from communities across Minnesota
Used public data and technical studies
Coordinated regularly with communities and stakeholders
Technical feasibility
Variety of building types, including residential, commercial and public
Building proximity and potential to expand the system in the future
Opportunities to maximize emissions reductions
Conduct additional site evaluations.
Continue engaging with communities and stakeholders.
Identify one candidate site that best benefits customers and communities.
Three final candidate communities
Tiles © Esri — Esri, HERE, Garmin, FAO, NOAA, USGS
CenterPoint is evaluating a potential project area generally located near 98th Street, Logan Avenue South, Penn Avenue South and Old Shakopee Road.
CenterPoint is evaluating a potential project area generally located near Shingle Creek Parkway, Summit Drive North and Bass Lake Road.
CenterPoint is evaluating a potential project area generally located near Old Crystal Bay Road, Wayzata Boulevard and 6th Avenue North.
06 — Project impacts
A path from concept to customer service
The pilot is expected to move from site evaluation and engineering to construction and service over the next several years. The timeline below highlights key milestones.*
-
2025 to 2026
- Engage Minnesota communities.
- Identify potential sites across our service area.
- Evaluate site feasibility.
- Shortlist three highest-potential sites.
-
2026 to 2027
- Complete engineering activities.
- Continue community engagement.
- Understand interest from potential participating customers.
- Select the highest-potential site.
- Apply for required permits.
-
2027 to 2028
- Begin construction.
- Conduct energy efficiency upgrades for connected buildings on the system, where needed.
- Continue community engagement.
-
2028 to 2029
- Complete construction.
- Place system into service.
- Evaluate system performance and customer experiences.
* The timeline is subject to change.
Expected construction activities
After a project location is identified in early 2027, construction is expected to be completed in phases. We will work to keep affected customers and the surrounding community informed during construction.
While construction activities and potential impacts are subject to change, they could include:
Locating and marking existing underground utilities
Drilling and digging
Installing underground water pipes
Temporary traffic control
Restoring previous work areas
Sharing regular project updates
Coordinating with participating customers and the surrounding community
Working to reduce or limit construction impacts when possible
Restoring impacted areas after construction
07 — Feedback
We want to hear from you.
FEEDBACK OPEN · OCT. 1–23, 2026
Complete a short form to tell us what you think about the proposed project.
Submit feedback → (opens in a new window)Additional resources
Energy efficiency programs
For more than 30 years, we’ve offered energy efficiency programs to help our Minnesota customers save energy and money. Learn more on our website about programs that may be available to customers, including the Home Energy Squad® residential energy assessment program, our online Energy Efficiency Store with free and discounted energy efficiency products, and rebates for homes and businesses.
Financial assistance
Are you facing hardship paying your natural gas bill? We’re here to help! Please visit our online resource with information on flexible payment plans, assistance programs and other programs that may be available to you.
Learn more →Natural gas safety
Learn more about how to act fast if you smell natural gas, call 811 before you dig and recognize a potential natural gas leak.
Learn more →