Drilling underway for geothermal-powered apartment tower in Ann Arbor

A new affordable housing development in downtown Ann Arbor is embracing geothermal energy as drilling gets underway for a system that will heat and cool the building using energy stored underground.

The geothermal system is being installed as part of a future 20-story affordable apartment building planned for the corner of South Fifth Avenue and East William Street. City officials say the project aligns with Ann Arbor's broader sustainability goals and could help reduce utility costs for residents over time.

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How the geothermal system works

According to Joe Lange, senior energy analyst with the City of Ann Arbor's Office of Sustainability and Innovations, geothermal technology uses resources beneath the Earth's surface to regulate a building's temperature.

"Geothermal is essentially you're using the resources that are in the ground, geo, to help heat and cool the building, thermal," Lange said.

Unlike traditional systems that rely on natural gas, the future apartment building will operate using electricity and geothermal energy.

"Because geothermal isn't using fossil gas, it uses electricity to kind of move things around," Lange said. "That is something that can be renewably powered through things like solar and wind energy in the long term."

Potential health and environmental benefits

Lange said geothermal systems can offer benefits beyond reducing fossil fuel use.

"If you're not using gas, you don't have gas inside the building," he said. "That can create a healthier environment. You don't have to worry about potential gas leaks or some of the subtle off-gassing that occurs when you have gas appliances in a building."

City officials hope to expand the use of geothermal technology in future developments throughout Ann Arbor.

"We are hoping to have more types of buildings and other houses on these kinds of systems where we can," Lange said.

Community reaction is mixed

Residents who live and work in the area had differing views on the project.

Theresa Zavisa, a longtime Ann Arbor resident and business owner, said she supports the city's continued growth and the addition of housing downtown.

"It's important to look beyond how tall the buildings are or what the buildings look like," Zavisa said. "I think it's important to look at the people that are in them also."

Others are less enthusiastic about the ongoing development.

"I miss Ann Arbor, it's not here anymore," resident Dave Hutchinson said.

Construction timeline

Residents and visitors near South Fifth Avenue and East William Street may continue to see drilling activity as work on the geothermal system moves forward.

Construction on the apartment development is expected to be completed in 2028.