Q1. Could you start by giving us a brief overview of your professional background, particularly focusing on your expertise in the industry?

I am a chemical engineer by training and have spent most of my career in the energy industry. I started out in upstream oil & gas and worked internationally. Eventually, I transitioned to gas utility work. From there, I joined the clean technologies team at a large utility. I led the first utility geothermal network project in the US. Recently, I have focused on developing thermal energy networks at both the building and district levels. After leaving the utility in 2025, I started my own boutique consulting firm to support the industry more broadly.

Q2. How would you describe the current momentum in the thermal energy systems market, and what forces are driving or slowing it down?

Interest in thermal energy systems seems to be growing by the day. The IRA legislation passed in the US had a jump-starting effect on the industry, and the rest of the world seems to be pushing in the same direction. The primary motivations are varied, but energy security, peak load management, and carbon reduction goals are all driving the industry forward. The high efficiency of thermal energy systems is also results in very favorable economics in most cases.

The primary challenges the industry currently faces are related to market development. As the approach is not widely adopted, the vendor ecosystem is still developing. This can lead to higher project costs and limited contractor options in the short term; however, it follows a similar market trajectory to other renewable energy sources as they first began to be developed.

Q3. How do you envision thermal energy networks evolving in response to climate adaptation and energy resilience needs?

As more thermal energy networks are deployed, I believe the industry will mature rapidly and continue to improve in terms of performance. Larger networks will be able to leverage the efficiencies of scale and connect diverse thermal sources that can provide energy at lower $/kWh rates. Large utility-scale networks also provide energy security and cost stability, making them more attractive in parts of the world that rely on fuel deliveries or have unstable energy supplies.

Q4. What share of the district energy market is currently held by low-temperature and shallow geothermal solutions?

Currently, the district market is still dominated by traditional central plant systems. Low-temperature energy networks, including geothermal solutions, are being demonstrated worldwide, but they still require critical market development to become more widely adopted. They currently represent a very small (single-digit percent) of the existing system market but are growing rapidly. The ability to provide both heating and cooling from a single system makes them very attractive in a broader cross-section of the market.

They may prove to be a district-type solution that can take hold in places like the US, where traditional districts have been deployed primarily in a few city centers. In other parts of the world, which have traditionally been more open to district systems, such as Europe, low-temperature networks are being considered a viable decarbonization pathway compared to the old central plant approach.

Q5. Is there a growing sub-segment of services focused on shallow geothermal integration with heat pumps and thermal storage in urban infill projects?

Yes, the service market is growing rapidly along with the broader deployment of low-temperature thermal networks. The challenges of urban infill projects generally mean that dedicated systems for heating and cooling are costly to site, and service providers are sought out for solutions. A single system that can do both simultaneously for different customers is especially attractive in these types of applications. Service companies that advise on project implementation, support system operations, or assist with the scope of building conversions are all experiencing increased demand.

Q6. How is competition evolving between traditional district heating players and newer 5GDHC-focused entrants?

The dynamics between traditional district heating players and the new industry have been interesting. As is often observed in other markets, the traditional companies seemed resistant to new approaches early on in the technology deployment. Projects were mostly done on university campuses where the system was not necessarily supported by an outside entity, and owners were more open to trying new approaches. As more interest and momentum build around 5G-style systems, traditional companies are beginning to see the value in the market and get involved. Their legacy experience in managing district-scale systems is valuable, but in many cases, they lack specific expertise in modeling and operating 5G systems. This can lead project owners to choose between a larger, established firm that is not specialized in 5G-style systems or a smaller, new player that has the expertise but potentially lacks the same track record.  

Q7. If you were an investor looking at companies within the space, what critical question would you pose to their senior management?

If I were evaluating investments in this space, the critical question I would ask senior management is how they plan to scale with the developing market. Many firms that have traditionally worked in or provided services to the shallow geothermal market are smaller, family-owned outfits that are not necessarily prepared to scale into district-level projects. Having a concrete plan and pathway for growing and supporting larger-scale initiatives is critical to maintaining the current momentum in the space.