The Manitoba government is spending up to $4 million to build a district geothermal heating system at a Winnipeg neighbourhood under development near the University of Manitoba, Premier Wab Kinew announced.

District geothermal heating systems produce heat by extracting energy from the earth and feeding it into a distribution network, where it is spread to individual properties.

“A whole neighbourhood can tap into geothermal, which means low-carbon heating and cooling for at least 1,000 homes in this new development at Southwood (Circle),” Kinew told reporters at a news conference Wednesday.

Southwood Circle will be a mixed-use development, housing condominiums, apartments and townhouses, as well as office and commercial space.

“We’re going to allow you to crank up the thermostat while bringing down your power bill at the same time,” Kinew said.

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Managing climate change was said to be a priority for the provincial government, which revealed the Manitoba Path to Net Zero last year. It called for Manitoba to reach net-zero emissions by 2050.

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As part of Wednesday’s announcement, Manitoba’s minister for Environment and Climate Change, Mike Moyes, shared the province’s Net Zero Action Plan, which contains 90 actions the province will take in the next three years for it to achieve net-zero in the next 24 years, he said.

The plan seeks to improve governmental transparency on the province’s interim greenhouse gas emission targets later this year, establishing a Climate Change Committee of Cabinet and providing around $55 million worth of grants to industry, farmers, First Nations and nonprofits. Existing provincial legislation contrary to the net-zero plan will also be amended.

It will be supported by more than $350 million in planned government funding, according to a news release from the Manitoba government.

“This plan is going to help Manitoba to compete and succeed in a low-carbon economy with our clean, renewable energy advantage,” Moyes said.

“It’s in every sector. It’s across government and, so, some of those things are harder to address than others. And we’re looking to not just get the low-hanging fruit, but also to lay the table.”

Moyes said the province will review the action plan every year to ensure it is advancing on schedule.

In 2023, Manitoba contributed just over 3 per cent, or 21.3 megatonnes of carbon dioxide equivalent, of Canada’s national greenhouse gas emissions, according to the Manitoba Plan to Net Zero.

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