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Wednesday, November 4, 2026Local news for Portland and Oregon.
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News · Detroit region

Ann Arbor begins drilling for geothermal system in new 20-story housing project

The 20-story affordable apartment tower at South Fifth Avenue and East William Street will use underground heat for climate control instead of natural gas.

By Samira Khalil ·

Illustration for: Ann Arbor begins drilling for geothermal system in new 20-story housing project
Illustration generated for this article, not a news photograph.

Drilling crews began work this week on a geothermal system for a new 20-story affordable apartment building in downtown Ann Arbor. The project is located at the corner of South Fifth Avenue and East William Street. Instead of using natural gas, the building will rely on electricity and heat stored underground to manage its temperature.

Joe Lange, a senior energy analyst for the City of Ann Arbor, explained that the technology uses the earth's natural heat. He noted that the system moves heat using electricity rather than burning fossil fuels. This allows the building to be powered by renewable sources like solar and wind energy in the long term. City officials stated that this approach aligns with local sustainability goals and may lower utility bills for residents over time.

Lange pointed out that removing gas appliances from the building can improve indoor air quality. He said that without gas lines, residents do not have to worry about leaks or the subtle off-gassing that often occurs with gas appliances. The city hopes to install similar geothermal systems in other types of buildings and houses across Ann Arbor as opportunities arise.

Local residents have mixed opinions about the construction. Theresa Zavisa, a business owner and longtime resident, supported the addition of new housing downtown. She emphasized that the focus should be on the people living in the buildings rather than just their height or appearance. Dave Hutchinson, another resident, expressed a different sentiment. He said he misses the city as it used to be and feels it is not the same anymore.

The geothermal system is a key part of the development's design. The building will not use traditional gas infrastructure for heating and cooling. This shift is intended to reduce the project's environmental footprint while providing a stable source of energy for the future apartments.

Construction on the apartment development is expected to be completed in 2028. Work on the geothermal system is currently underway, and activity near the intersection may continue as drilling progresses.

Source: WXYZ 7 Action News

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