One of your first goals in the first chapter is to build a research institute, which will allow you to unlock new ways to mine coal and restart the generator, which will save New London from its dire state. The problem is that when you select the research institute building in the menu, the game does not prompt or show the place where it should be built.
In order to have space for the institute, you need to expand the residential district. Another of your initial goals in the first chapter is to build two residential districts, so click on one of them and look for the symbol with four arrows in the lower right corner of the toolbar that opens. This function allows you to expand the district. This is a crucial function in Frostpunk 2, since expanded districts have additional slots for the construction of those very buildings. Click on the icon, pay the cost of the expansion (need modules and heatmarks) and wait for the process to complete.
After the expansion is complete, you will be able to place the research institute in the residential district, unlocking the idea tree for research. Remember, expanding districts is important because it provides slots for building construction. And the buildings you place in each district determine their ability to produce and store resources.
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The studio has acknowledged several failures in the past.
The project is multiplayer and free.