İzmir Geothermal Energy Inc. is a geothermal district heating company in İzmirTurkey that circulates hot water throughout the district via a 450 km of piping system and with the help of valves, pipes, and heat exchangers. As the distance traveled by the hot water is excessively long, heat losses are common. Rock wool is used as thermal insulation material, but the performance degraded over time because of water leakage. Instead of rock wool, aerogel insulation blanket use is evaluated in this study. Rock wool and three different aerogel insulation blankets are comparatively studied to assess their structures and thermal performances in two ways: the first is the characterization of materials by various physical and chemical analysis methods in the IZTECH-Integrated Research Center. The second way is to assemble a test setup on-site and make thermal measurements on the test setup for each aerogel insulation material, rock wool, and bare pipe. Heat loss calculations were conducted by EES software. The results are compared based on each characterization and thermal performance calculation. The thermal conductivity values of the insulation materials were calculated. Nonwetting properties were also checked to understand their hygrothermal properties. Compared with bare pipe, with the 10 mm thickness, rock wool decreases heat loss by 48-52%, and with the 10 mm thickness, the aerogel insulation blankets reduce heat loss by 57-61%. Finally, while aerogel insulation blankets have a better performance, they are more expensive than rock wool. Keywords: Aerogel, Insulation, Geothermal Energy, Energy Efficiency