John F. McCloskey Elementary School in Cedarbrook and the neighboring Dorothy Emanuel Recreation Center are viable sites for a clean energy system, a Pennsylvania-based firm has found.

Philadelphia Gas Works hired Alderson Engineering in October to study whether it is technically and economically possible for the two buildings to have a shared geothermal heating and cooling system. The firm had six months to conduct the $500,000 feasibility study in partnership with PGW, the School District of Philadelphia and the Philadelphia Parks & Recreation Department. PGW announced the findings on Aug. 5.

“Both PGW and the school district and Parks and Rec all provided important roles on the project, and we had a great team of participants to see this feasibility through,” said Neal Babcock, principal engineer for Alderson.

The study fits with PGW’s and the district’s clean energy goals. Geothermal systems, a renewable energy source, uses the Earth’s stable temperature to heat and cool homes. Alderson Engineering assessed the possibility of a closed-loop system, which circulates water through underground pipes.

Alderson Engineering found that the property has the right geologic conditions for the type of drilling needed for a geothermal HVAC system, and the ground has above-average thermal conductivity, which is how well it can transfer heat.

If installed, the system would provide McCloskey Elementary School with adequate air conditioning. Sometimes the district cancels in-person classes and activities due to the heat, according to PGW’s August news release. The school shares a six-acre property with Dorothy Emanuel Recreation Center, which is operated by Parks & Recreation.

Geothermal would be the more cost-effective solution if the school installs new heating and cooling systems, according to the study. Geothermal energy systems are more expensive upfront compared to traditional HVAC systems, but the operational costs are significantly lower, Babcock said.

The project is expected to cost around $19 million, or $11.4 million with potential tax incentives. The Investment Tax Credit, an incentive in the federal One Beautiful Bill Act of 2025, could reduce the project cost by around 40%, according to the study.

McCloskey Elementary School would be the second school in the district to have a geothermal system after Kensington High School for the Creative and Performing Arts, which implemented one in 2010 with the help of Alderson Engineering.

Moving forward, PGW, the school district and Parks & Recreation need to decide who will own and pay for the project. The school district is still seeking funding for its $3 billion master plan to renovate and close schools.

“The study findings are now with PGW, and there is no imminent proposal or plans to move forward with construction at this time,” Oz Hill, the deputy superintendent of operations for the School District of Philadelphia, said in a statement. “As a district, we are committed to working with our partners on finding innovative and cost-effective ways to maintain comfortable heating and cooling conditions in our schools, and we’ll remain in conversation with PGW on any future prospects.”

The study is part of PGW’s goal of expanding its green energy sources and lowering its greenhouse gas emissions, PGW said. The effort comes after years of pressure from advocates for PGW to shift away from natural gas. It also supports the school district’s GreenFutures sustainability plan, which launched in 2016.

The project at McCloskey, if installed, could become a “model for future opportunities,” Gov. Josh Shapiro said in October.

“We believe geothermal is one of many alternatives that can play a pivotal role in an ‘all of the above’ energy strategy for the city and Commonwealth,” Seth Shapiro, PGW president and chief executive officer, said in the release.

PGW is also considering other renewable energy projects in Philadelphia, like hydrogen, to advance its goals.

“It’s going to take a mix of solutions,” said Elliott Gold, PGW’s vice president of corporate planning, “So this study is good news and it’s one more step forward for us.”