by Nick Edwards
October 15, 2026
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Coloplast’s Minneapolis campus had an ambitious decarbonization plan. The challenge was a familiar one: securing approval for an investment of that scale as a stand-alone sustainability initiative can be difficult.
Meanwhile, the business faced a more immediate need. Growth in its Interventional Urology line required a new cleanroom expansion that was moving forward as an independent project.
Together, these circumstances created an opportunity. If Coloplast was already investing in new heating and cooling systems for the cleanroom, the team could evaluate whether those systems should be conventional or decarbonized. That question ultimately positioned the cleanroom as Phase 1 of a four-phase plan to decarbonize the entire campus. Joe Angles of Coloplast and I presented this work at the I2SL Annual Conference in September. The experience offers four key lessons for owners considering a similar path.
1. Compare the Increment, Not the Whole Plan
Coloplast solicited pricing for two versions of the cleanroom: one with conventional mechanical systems and another with an integrated geothermal system.
Because the cleanroom was necessary under either scenario, the decision centered on whether the incremental investment in the geothermal option represented worthwhile value.
This distinction shaped the project’s funding approach. The manufacturing capital budget supported the base cleanroom on its business merits, while the corporate sustainability budget covered the incremental cost based on environmental impact and financial return. Federal tax incentives further reduced the net premium, and the wells installed for the cleanroom were sized to support future phases.
Deferring the work would have carried its own cost. Decarbonizing later would require replacing systems still in service, resulting in greater expense and more disruption to operations.
2. Choose Technology Suited to the Climate and the Site
Air-source heat pumps are a common path to electrification, but their reliability to serve critical spaces in cold climates can be concerning to some owners. Designs relying heavily on electric-resistance heat significantly increase operating costs and place additional demands on campus electrical capacity.
Site conditions introduced further constraints. Coloplast’s campus is compact and urban, and its cleanroom operations cannot tolerate interruptions in heating, cooling or humidity control.
Aquifer-source geothermal addressed both challenges. The system uses groundwater as a source for heating and cooling, and each well provides greater capacity than traditional geothermal systems, making the approach well suited to a constrained site.
3. Maintain Confidence as Conditions Change
Several conditions shifted over the course of the project. Minnesota introduced new rules and regulations for this type of system, underground utility easements constrained well placement, and changes in federal policy created uncertainty around the anticipated tax credit.
One early decision helped the team respond to these changes: conventional and geothermal designs were advanced in parallel. Because the cleanroom did not depend on the geothermal outcome, the core business need remained protected throughout the process.
Maintaining stakeholder alignment was equally important. Leadership, facilities staff, the design and construction team and regulators each needed to understand an unfamiliar technology. Clear decision points, candid discussions of risk and dedicated time for testing and commissioning helped sustain confidence. Sustainability projects often stall when unexpected information erodes trust; in this case, consistent communication allowed the team to address new developments as decisions rather than setbacks.
4. Treat Incentives as Support, not the Business Case
Coloplast approved the project in 2024 with the expectation of a significant federal tax incentive for the geothermal portion. By mid-2025, revisions to federal incentive rules had introduced uncertainty, prompting Coloplast to engage outside tax consultants during project execution.
Geothermal remains eligible for federal tax incentives under current law. Even so, the experience offers clear guidance for owners: involve a tax advisor before the design is finalized, assign an owner-side lead to manage the tax process, use conservative credit assumptions when seeking approval, and ensure that engineering records, accounting documentation and tax filings describe the same system and timeline.
Start with the Project Already in the Plan
Coloplast did not begin with approval for a comprehensive campus-wide program. It began with a project already included in the capital plan and a willingness to evaluate that project through a different lens.
Most owners have a comparable opportunity on the horizon, whether an expansion, a renovation or an upcoming equipment replacement. That planned project may provide the most practical place to begin.
