ARLINGTON, Virginia — Dandelion Energy and Vermont Gas (VGS) have announced a partnership to bring geothermal heating and cooling to an affordable housing development in Hinesburg, Vermont. The project introduces a utility investment model that uses natural gas infrastructure funding to expand access to geothermal energy.

The partnership will support Riggs Meadow, a 44-unit development featuring townhomes and apartments for low- and moderate-income renters and homeowners. Affordable housing developers Champlain Housing Trust and Evernorth worked with VGS to evaluate geothermal options before establishing the partnership with Dandelion Energy.

VGS will fund the upfront installation of geothermal ground loops, reducing the initial cost barrier for the development. Dandelion Energy will provide end-to-end geothermal services, including system design and drilling.

The companies describe the arrangement as the first partnership of its kind for a natural gas utility in the United States. The project will also be Vermont's first community-scale geothermal development.

"Utility-owned ground loops are a practical, immediate solution to decarbonize housing," said Dan Yates, CEO of Dandelion Energy. He said partnerships with utilities could help make geothermal a more widely adopted option for developers and builders.

Neale Lunderville, president and CEO of Vermont Gas, said the partnership will demonstrate how geothermal can expand to meet community needs as Vermont works to increase its housing supply. The utility is exploring ways to incorporate geothermal into its product portfolio, giving builders and customers additional heating and cooling options.

The geothermal systems will use stable underground temperatures to provide all-electric heating and cooling. According to the companies, the technology offers efficient operation throughout the year, including during Vermont's cold winters.

The partnership also aims to address energy affordability. Geothermal systems can provide greater energy price stability, which is particularly relevant for affordable housing residents who may be more vulnerable to fluctuating energy costs.

The companies said geothermal's relatively low and steady electricity demand can also support grid stability as more buildings adopt electrified heating and cooling.

Drilling for the geothermal boreholes is scheduled to begin in early 2027. Residents are expected to move into the development in late 2027.

The project offers a model for natural gas utilities to invest in geothermal infrastructure and expand their role in providing heating and cooling services. The companies say the approach could help affordable housing developers overcome upfront installation costs and make geothermal systems accessible to more residents.