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Drilling Industry News

Thanks to collaborative grant funding, Vandalia Ill. preps to go geothermal

The city will effort a geothermal pilot program that will kickstart Thermal Energy Network (TEN) utilities

By The Driller Staff
The Vandalia State House is the oldest surviving state house in Illinois.
The Vandalia State House is the oldest surviving state house in Illinois. / Flickr
June 29, 2026

The City of Vandalia, Illinois, in partnership with Redicool, Gaiergy Corp, Thermal Energy Insights, and Supplied Energy, has been awarded a Phase One Planning Grant through the Community Geothermal Planning and Pilots Program. The grant is administered by the Illinois Finance Authority.  

The City will be starting a design and engineering phase for a Thermal Energy Network (TEN); this is a new utility that uses geothermal to provide heating and cooling to the residents of Vandalia. The TEN connects homes, institutions, and businesses to a closed-circulating water loop buried beneath the streets.

“Receiving this grant is an exciting step forward for Vandalia and our community,” said Vandalia mayor Doug Knebel. “This project gives us the opportunity to explore a reliable energy solution that could lower long-term utility costs, strengthen local infrastructure, and improve comfort for residents and businesses. We’re excited to explore an energy approach that has already delivered proven results in other communities and institutions, while creating long-term benefits for Vandalia residents and businesses.”

During this 12-month engineering and design phase, the City will design a shared geothermal network anchored by the local school campuses and Sarah Bush Lincoln Fayette County Hospital. This initial system will connect a focused residential district to the loop, establishing a localized utility model built to scale and extend to additional residential properties throughout Vandalia in the future. 

“A successful Thermal Energy Network begins with thoughtful planning, technical analysis, and strong community engagement,” said Eric Bosworth from Thermal Energy Insights. “This project will help establish a roadmap for how geothermal infrastructure can be deployed in a way that delivers measurable community and economic benefits.”

In addition to technical and financial analysis, the project team will engage local businesses and residents to measure interest and participation in the proposed network. The goal is to provide access to totally local, energy-efficient heating and cooling solutions with lower upfront costs. The proposed system would operate in a similar fashion, except more efficiently than other utility infrastructure, like water or gas lines, throughout the community.

The Vandalia State House in Vandalia, Ill.
The city of Vandalia, Ill. is kickstarting a pilot program for geothermal / Flickr


“We’ve seen firsthand how Thermal Energy Networks can help communities and institutions reduce energy costs, strengthen local infrastructure, and create long-term energy stability,” said Jason Masters from Gaiaergy Corp. “We’re excited to help Vandalia realize the potential benefits a community geothermal system can bring to residents and businesses.”

Phase One of the program supports planning and design activities for communities that have already begun early-stage development. The outcome will be a comprehensive Community Geothermal Project Plan that meets the requirements for Phase Two funding.

Phase Two of the program will support construction and deployment of projects that are ready to move forward. Selected projects must demonstrate measurable emissions reductions and clear community benefits, including stable or reduced energy costs for participants.

A key program priority is ensuring that households connected to a geothermal network experience no increase in overall energy expenses and ideally, a reduction in annual energy costs. Financial modeling will account for factors such as reduced gas service costs, changes in electricity usage, and potential efficiency improvements. While geothermal is vastly more efficient on a per home basis, upfront costs have limited deployment. The community basis of this system removes those cost hurdles. 


“This project will help establish a roadmap for how geothermal infrastructure can be deployed in a way that delivers measurable community and economic benefits.”

-- Eric Bosworth, Thermal Energy Insights


“As a geothermal heat pump distributor based in Greenville, our family and friends have been helping install geothermal systems throughout this region for more than 40 years,” said Kyle Smith from Supplied Energy. “Geothermal itself is not new to Vandalia and surrounding communities. What makes this project exciting is the shared Thermal Energy Network approach, which removes much of the upfront ground loop cost and makes geothermal heating and cooling more financially accessible.”

This effort positions Vandalia to advance toward greater energy resilience, with a community-based energy solution that improves energy affordability and enhances comfort for residents and businesses. Similar systems have been successfully implemented and are operating in communities such as Framingham, Massachusetts, and university campuses across the nation.

To support implementation, the City has assembled a team of specialized partners: Redicool, a thermal energy management firm that designs and builds next-generation thermal infrastructure; Gaiergy Corp,  a firm focused on renewable energy and district geothermal design; Thermal Energy Insights, providing independent regulatory and technical consulting for thermal energy systems; and Supplied Energy, a geothermal heat pump distributor and systems designer, supplying high-efficiency equipment and connecting property owners with qualified installers. 

KEYWORDS: geothermal drilling geothermal energy

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This article was written by The Driller staff.

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