A massive geothermal apartment complex is going up in Brooklyn, the first of its kind

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CNBC's Diana Olick joins 'The Exchange' to discuss how Lendlease is using geothermal energy to heat and cool buildings, construction considerations for geothermal housing developments, and the financial and environmental benefits of geothermal housing.

On the edge of the East River in Brooklyn, the cranes haven't arrived at the construction site yet. Instead, massive drills are scattered across the full city block, drilling 320 boreholes nearly 500 feet into the ground. When construction is completed in 2025, the site will house the largest residential apartment complex in the U.S. to be heated by geothermal energy.

"We will be using it for everything from a swimming pool that will be heated through geothermal. We will be using it for all the domestic hot water in the building and also for heating and cooling, which will be heat pumps in every apartment," explained Scott Walsh, director of development for Lendlease.

"It's approximately 55 degrees once you get below the frost line, and we are using that constant to cool in the summer and to be warmer in the winter," explained Walsh. "Akin to your heart and the arteries and the veins in your body."

 

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