City of Rochester Launches Minnesota’s First Operational Thermal Energy Network Through Downtown Building Energy Transition Initiative
City of Rochester Launches Minnesota’s First Operational Thermal Energy Network Through Downtown Building Energy Transition Initiative
December 1, 2025 – ROCHESTER, MINNESOTA. – The City of Rochester, in partnership with Destination Medical Center (DMC), is advancing its commitment to clean energy through the Downtown Building Energy Transition (DBET) initiative. This multi-phase project is transforming how municipal buildings are heated and cooled, moving away from fossil fuels and toward geothermal energy. As Rochester Public Utilities advances toward 100% net renewable electricity by 2030, the DBET initiative ensures City facilities are operating on clean, resiliency and efficient energy systems.
The initiative began in response to Olmsted County’s 2017 announcement to decommission its downtown steam lines by 2023. Recognizing both the challenge and opportunity, the City launched DBET to explore sustainable alternatives. Phase 1 retrofitted the 84,500-square-foot City Hall to operate entirely on geothermal energy, completed in just eight months. The system became fully operational in 2024 and now provides year-round heating and cooling through two high-capacity geothermal wells.
Phase 2 of the project is coming online this week and marks a historic milestone: the creation of Minnesota’s first operational thermal energy network. This phase connects the Mayo Civic Center, Rochester Art Center, Rochester Civic Theatre and the Rochester Public Library to a shared geothermal system. The network allows buildings to exchange thermal energy, transferring heat where it’s needed most and enabling simultaneous heating and cooling across facilities. Natural gas will remain only as a backup fuel source.
“This is the first system of its kind in Minnesota to serve multiple public buildings with 100% renewable geothermal energy,” said Mayor Kim Norton. “It’s designed to heat and cool more than 850,000 square feet of space year-round, regardless of weather, while saving the City an estimated $900,000 in energy costs each year. It’s a bold step toward a more sustainable and resilient future for Rochester.”
“The Downtown Building Energy Transition initiative directly advances DMC’s sustainability goals by demonstrating how infrastructure investment and innovation can work hand-in-hand,” said Lauren Jensen, Energy and Sustainability Manager. “By reducing our reliance on fossil fuels and designing systems that can scale to serve the broader district, we’re showing what a clean, resilient and future-ready downtown can look like.”
While no private buildings are currently connected, the system was deliberately designed for expansion, laying the groundwork for a future district-wide thermal energy network that could one day include private development.
Geothermal energy is not new to Rochester. The City has used geothermal systems for more than 15 years at facilities such as Rochester Public Utilities building, the Transportation Center, and Fire Station 2. The DBET initiative builds on this foundation, positioning Rochester as a statewide leader in sustainable municipal energy systems.
More information about this DBET initiative is available on the project website: https://arcg.is/15mXyq0