The system is expected to meet the carbon-reduction requirements of NYC's Local Law 97, which go into effect at the end of this year; the system also meets a Mission Zero target Lendlease has established to reach "absolute zero carbon" in its operations by 2040.

According to the developer, the geothermal heat exchange system will reduce annual carbon emissions from heating and cooling at 1 Java by 53% compared with traditional power systems.

The 1 Java Street complex includes five buildings, including a 37-story tower and a 20-story tower, which are interconnected; 30% of the units are designated as affordable. The project includes 13K SF of ground-floor retail and an 18K waterfront connected to the India Street Pier, which will offer East River Ferry service to Manhattan.

"1 Java Street presents us with the opportunity to establish a pioneering model for geothermal energy, aligning with New York's ambitious climate goals, as well as our global targets of absolute zero carbon by 2040," said Scott Walsh, Lendlease's project director, NY development," in a statement.

"Our decision to use geothermal was driven not only by the environmental benefits and cost savings, but also enhanced marketability upon completion," Walsh said.

The developers also are aiming to achieve LEED Golds, Fitwel and Waterfront Edge Design Guidelines certification of the 1 Java Street project.

In 2022, New York adopted a $5,000 tax credit for homeowners who install geothermal heat pump (GHP) systems. Although the purchase and installation cost of a residential GHP system is often higher than that of other heating and cooling systems, properly sized and installed GHPs deliver more energy per unit consumed than conventional systems, according to information on energy.gov.

For further savings, GHPs equipped with a device called a "desuperheater" can heat household water. In the summer, the heat removed from the house is used to heat the water for free. In the winter, water heating costs are reduced by about 50%.

Depending on factors such as climate, soil conditions, system features and available financing and incentives, homeowners may amortize their GHP investment in a few years through lower utility bills.

When included in a mortgage, a GHP investment may produce a positive cash flow from the beginning. It may also be possible to include the purchase of a GHP system in an "energy-efficient mortgage" that would cover this and other energy-saving improvements to the home, the DOE website says.