New York has approved its first two utility-scale thermal energy networks, according to Canary Media. The Public Service Commission committed a combined $111.5 million to pilot projects in Haverstraw and Buffalo, making them the second and third such utility projects in the country. The commission rejected nine other proposals, including several in New York City and upstate communities.
The projects are a partial victory for the UpgradeNY coalition, which has pushed regulators to let gas utilities shift from delivering fossil fuels to delivering clean heat. In Haverstraw, Orange & Rockland plans to spend $50 million on a network connecting up to 30 buildings, drawing heat from borefields and wastewater. In Buffalo, National Fuel Gas will spend $61 million to tap an existing steam system, boreholes, and wastewater heat recovery to serve low-income housing and displace some fossil gas boilers.
Thermal networks circulate water or other fluids to capture steady underground temperatures and waste heat, making electric heat pumps more efficient. Massachusetts is furthest ahead on the concept, with one completed utility project and another in development. New York will use $93 million in state funds to offset customer costs, part of a $150 million commitment to thermal networks. Supporters say the two approved projects will set a standard and create a blueprint, though it remains unclear whether their benefits will justify the costs.