when was thisannounced?????????????????
Geothermal. Management has also thrown its hat into the ring of urban geothermal energy generation. As one example, the recently announced Arverne East development in Rockaway peninsula Queens, NYC, is planned to have 1,650 housing units, several hundred thousand square feet of retail space, a hotel, coworking space and a brewery. An ~ $1Bln project, the development will feature geothermal heating, solar roof gardens, and passive house design to optimize energy efficiency, according to Bloomberg. Arverne East builders will drill ~450 feet into the Earth to insert a pipe system that will connect ambient loop bores to heat pumps that tenants and others will be able to control above ground. Please refer to important disclosure information and Regulation Analyst Certification found on pages 7 - 8 of this report. We see projects like Arverne East as proving grounds for large-scale geothermal installation in an urban setting. Because of the depth of drilling and the potential to encounter existing below surface obstructions, true greenfield projects are the lowhanging fruit for this technology nearer term. Once constructed and proven durable, we believe placing geothermal in more challenging environments will gain momentum. Large buildings strike us as logical catalysts for this transformation. New construction should welcome the chance to make upfront investments that provide regulatory certainty for the life of the building. It should be noted that adoption of new energy generation technology will not be an overnight event. That said, KNR has already announced one VRF/VRV installation and we expect more to trickle into the order book over our forecast period.