When homes and businesses open at The Heights on St. Paul's East Side, they'll pull heat directly from the earth, cycling water through the aquifer like a radiator.

St. Paul Mayor Melvin Carter this week joined representatives of District Energy, the St. Paul Port Authority, City Council and environmental advocates at the site of the former Hillcrest golf course off Larpenteur Avenue to celebrate construction of the state's first aquifer thermal energy storage system, and one of the largest networked geothermal energy systems in Minnesota.

The geothermal system is expected to heat and cool buildings throughout much of the 112-acre redevelopment project.

The city has set climate goals of achieving "net zero" greenhouse gas emissions by 2050.

The geothermal energy project was backed by a variety of funding sources, including $4.7 million state loan -- the first from the new Minnesota Climate Innovation Finance Authority, also known as Minnesota's "green bank." MnCIFA was established by the Legislature to accelerate clean energy projects and advance the state's climate goals.

The Heights Community Energy will own and operate the geothermal system under the direction of District Energy St. Paul, the city's longstanding nonprofit utility partner, and the St. Paul Port Authority, master developer of The Heights.

At full build-out, The Heights is expected to include 1,000 new housing units and 1,000 living-wage jobs. Sherman Associates, the JO Companies and Twin Cities Habitat for Humanity are developing a wide range of housing options, including affordable housing, and the geothermal energy system, coupled with energy-efficient design, is expected to help keep utility bills low.