PGW Announces Results of Geothermal Feasibility Study in Collaboration with School District of Philadelphia and Philadelphia Parks and Recreation
Posted on: Aug 05, 2026Study Confirms Technical Viability of Geothermal Heating and Cooling System at McCloskey Elementary School and Dorothy Emanuel Recreation Center
PHILADELPHIA (August 5, 2026) – Philadelphia Gas Works (PGW) is excited to share the results of the Geothermal Feasibility Study, conducted in collaboration with the School District of Philadelphia (SDP), the City of Philadelphia’s Parks and Recreation (PPR), and Alderson Engineering. The study was undertaken to assess the technical and economic viability of implementing a closed loop geothermal heating and cooling system at the site serving John F. McCloskey Elementary School and Dorothy Emanuel Recreation Center.
The exploration of geothermal technology is part of PGW’s broader diversification efforts, which aim to grow revenue, deliver increased value to customers, expand its clean energy portfolio, and lower emissions. The study is one of the efforts PGW is taking to evaluate what role it can play in delivering innovative energy services beyond just natural gas in the future. In addition, PGW’s collaboration supports SDP’s GreenFutures Plan, with the goal to provide students and staff with a well-resourced, safe, healthy, clean, and comfortable learning and working environment.
The detailed study outlines geological conditions, available space for underground borefield installations, and the potential design for a decentralized geothermal unit with pumping capabilities. PGW and partners remain laser focused on exploring achievable ways to reduce emissions, offer cost-saving energy efficient options for customers, and sustain jobs across Philadelphia.
“As a leader in the energy industry, PGW is committed to delivering safe, reliable and affordable energy,” said Seth Shapiro, PGW President and Chief Executive Officer. “We have increasingly focused on innovation, partnering with other institutions to drive creative energy solutions across the City. We believe geothermal is one of many alternatives that can play a pivotal role in an ‘all of the above’ energy strategy for the City and Commonwealth.”
Background
The Geothermal Feasibility Study outlines a realistic solution to support keeping students and staff in a comfortable environment. While John F. McCloskey Elementary School and the Dorothy Emanuel Recreation Center are operating to the best of their abilities, extreme heat at times forces McCloskey School students and staff to participate in virtual learning and face canceled activities due to inadequate cooling.
“By partnering with Philadelphia Gas Works to explore innovative energy solutions within our schools, we aim to provide clean and efficient heating and cooling options, enhance our school environment, reduce costs, and be part of a key feasibility study that can help pave the way for equitable, sustainable energy strategies that benefit all Philadelphians,” said Deputy Superintendent of Operations Oz Hill, School District of Philadelphia.
Key Findings
The Geothermal Feasibility Study identified the following key findings:
- Favorable Geological Conditions: The geological conditions of the site are favorable for vertical borehole drilling (a hole that has been drilled straight down into the ground).
- Above-Average Thermal Conductivity: Local thermal conductivity tests, which measure how well the ground can transfer heat, indicated moderately above average thermal conductivity, which is an important factor in geothermal systems as they rely on the ground to extract heat in the winter and exchange heat in the summer.
- Aging HVAC Infrastructure: The existing oil-fired HVAC equipment at McCloskey does not provide cooling and has exceeded its expected lifetime and is recommended to be replaced. PPR recently completed an HVAC project at Dorothy Emmanuel Recreation Center.
- Viable System Design: To implement a geothermal system, the planned borehole systems, related delivery pump systems, and enclosures would be placed on the grass area next to the playing field area of the site. The geothermal utilities would deliver fluid to a heat exchanger system in each of the connected buildings. Two options are available for housing the pumping infrastructure – a prefabricated building, or in the school’s basement to reduce costs.
- Project Cost Estimates:
- If only replacing the heating system, natural gas remains the most affordable and most efficient solution for the facilities. If replacing heating and adding cooling, the ability of geothermal to serve both functions with a single system creates synergies.
- The primary geothermal solution is expected to cost approximately $19 million. With projected potential incentives reducing the cost by approximately $7.6 million, the net total cost of the project is estimated to be $11.4 million.
- A second alternative solution is expected to cost approximately $25 million. With projected potential incentives reducing the cost by approximately $10 million, the estimated net total cost is $15 million.
- These potential incentives are fully dependent on the Investment Tax Credit offsetting approximately 40% of the geothermal project cost.
- Future Scalability: The geothermal system design anticipates the ability for future scalability, providing the opportunity for additional properties or buildings to be safely integrated into the loop over time.
Procurement Process
In PGW’s effort to expand its clean energy portfolio and explore diversification efforts, PGW issued a Request for Proposals on March 17, 2025, and received applications through April 15, 2025. All were carefully reviewed before Alderson was selected as the Geothermal Feasibility study contractor.
To read the study, visit pgworks.com/fuelingthefuture.
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