tech

January 29, 2026

‘The LED of heating’: cheap geothermal energy system makes US comeback

Minnesota housing project to draw energy from water stored deep underground, 45 years on from city’s initial research

‘The LED of heating’: cheap geothermal energy system makes US comeback

TL;DR

  • The Heights, a new development in St. Paul, Minnesota, is implementing a large-scale aquifer thermal energy storage system, reviving a concept tested by the US Department of Energy nearly 50 years ago.
  • The system uses groundwater from an aquifer 100-150 meters below ground, drawn by electric heat pumps powered partly by solar panels, to provide heating and cooling for 850 homes and light-industrial buildings.
  • Aquifer thermal energy storage can reduce greenhouse gas emissions by up to 74% and offers significant cost savings on energy bills compared to conventional heating and cooling.
  • The stable temperature of the aquifer (around 10°C year-round) makes it more efficient than air-source heat pumps, which struggle in extreme temperatures.
  • The project is supported by federal tax credits from the Inflation Reduction Act, covering about 50% of the system's construction cost.

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