Astro Teller, head of Alphabet's X division. Flickr/Techcrunch X, the "moonshot" division of Google's parent company Alphabet, has spun out a new geothermal heating and cooling company called Dandelion, the company announced Thursday.

Dandelion comes from a previously undisclosed project at X that began two years ago. It'll be run as a separate company outside the Alphabet umbrella and has raised $2 million in funding. Collaborative Fund, an early-stage VC firm, led the round.

Dandelion claims it can affordably drill and install geothermal systems to heat and cool homes, which is usually a very expensive process. The company is based in New York City and plans to provide services to qualified homes in New York state.

X works on several moonshot projects for Alphabet, including delivery drones, high-altitude balloons that beam internet to earth, and wind turbines that generate power. Waymo, Google's former self-driving car division, spun out of X last year as a new company under Alphabet.