​​​​​​​​​​​Natural Gas Innovation Act

Innovation to advance Minnesota's energy future

In July 2024, CenterPoint Energy received approval from the Minnesota Public Utilities Commission to implement a diverse set of innovative pilot projects that aim to reduce greenhouse gas emissions and advance decarbonization efforts for our Minnesota customers. The plan includes investments in made-in-Minnesota low- and zero-carbon gases like renewable natural gas and green hydrogen, as well as emerging technologies such as networked geothermal systems and hybrid heating.

The projects are part of a five-year innovation plan submitted under a landmark state energy law: the Natural Gas Innovation Act (NGIA). Passed with bipartisan support, NGIA creates a new regulatory framework for natural gas utilities to invest in renewable energy resources and innovative technologies. CenterPoint is the first utility in Minnesota to file and have an innovation plan approved.​

Our innovation plan helps advance decarbonization efforts, while maintaining readily available, safe and reliable energy solutions to power our customers’ homes and businesses in our cold-weather climate.

What are the benefits of CenterPoint’s innovation plan? 

This plan offers several benefits to our customers and communities like: 
  • Reducing or avoiding an estimated 1.1 million tons of carbon emissions over the lifetime of the projects – equivalent to the annual energy use of approximately 150,000 homes.
  • Investing in made-in-Minnesota carbon negative, zero-and low-carbon neutral gas alternatives.
  • Providing support and programs for customers who demonstrate the efficacy of new and emerging technologies.
  • ​Working with local nonprofits to plant trees across the Twin Cities Metro area.

What is included in CenterPoint’s innovation plan?

Our innovation plan includes 17 pilot projects. Key efforts we'll explore include: 

leaf and a flameInvesting in made-in-Minnesota gas alternatives

  • Renewable natural gas (RNG) is produced by recycling organic waste materials from farms, food waste, wastewater treatment facilities and other sources to produce pipeline-quality gas. CenterPoint will purchase RNG from several regional producers as part of our plan. Learn more about the benefits of RNG and how RNG producers can connect to our system.​
  • Green hydrogen is produced by splitting water into oxygen and hydrogen using renewable electricity. It can be blended into the utility’s natural gas supply or used directly in a dedicated system for industrial or large commercial customers. Learn more about how we’ve already been generating and distributing our own hydrogen in Minneapolis.​ 

Networked geothermal system and district energy systems

CenterPoint plans to develop a networked geothermal system, also known as a thermal energy network, in a neighborhood currently served by us. A networked geothermal system provides heating and cooling to multiple buildings connected by underground water pipes and electric heat pumps, using the relatively constant temperature of the earth.

In addition to the system ​we will own, we plan to work with large customers that have multiple buildings in one area, such as on a campus, for the development of customer-owned district energy systems.

Hybrid heating

The plan includes incentives for home and business customers to install hybrid heating systems that use electric heat pumps with supplemental natural gas heating for winter’s coldest days.​

​Industrial decarbonization

The plan includes incentives and other support for industrial customers intended to help improve efficiency and reduce emissions for high-heat processes such as glassmaking, concrete production and metal foundries.

Have questions? Contact InnovationPlan@CenterPointEnergy.com​.