Many cities across the United States are finding ways to combat climate change by setting ambitious decarbonization goals to reduce greenhouse gas emissions. Urban buildings are notorious for emitting significant carbon emissions into our atmosphere by using fossil fuels for heating and other energy uses. With the Federal government and various states implementing, drafting, and debating new laws, regulations, and programs to swiftly push the clean energy transition, now is the time to consider electrification and move away from natural gas.
Risks to consider with natural gas
While many buildings and homes around the world currently rely on natural gas for heating needs, there are several risks factors that are critical to consider when debating whether to remain on natural gas over cleaner fuel sources.
Operating costs and legislative risk
As we advance towards a low-carbon economy, the likelihood of carbon taxes becoming a roadblock for natural gas consumption is increasing. Building owners must plan for a future when carbon taxes are a reality and consider their choices today to avoid financial consequences in the coming years.
An additional risk building owners must consider is price unpredictability and the looming operating cost increases associated with using natural gas. This legislative uncertainty and price volatility make long-term energy planning difficult.
When buildings install natural gas equipment, they are locked in to using fossil fuels for 30 to 40 years, which is the average life span of the equipment. Given the current political landscape, however, it’s crucial to review all energy options to ensure that buildings can adapt as climate legislation is implemented over the next 5, 10, or even 30 years.
In addition to the future cost of a carbon tax, onsite mechanical plants require ongoing operation and maintenance. Often, this means bringing on full-time staff or contractors to run the system daily. Owners must check their local regulations to ensure they have factored in the appropriate number of staff with the right qualifications and licensing to meet the city’s operational requirements. They must also account for ongoing maintenance, including parts replacement and future upgrades, to keep the system running optimally.
Health and safety concerns
Fossil fuel-based heating systems, such as oil or natural gas furnaces, can contribute to indoor air pollution, which, according to the EPA, is often more dangerous than outdoor air pollutants due to high exposure levels. They release combustion byproducts such as carbon monoxide, which can negatively impact indoor air quality and overall health. As carbon consciousness grows among building tenants and investors, so does the demand for green energy solutions that address concerns about reducing carbon emissions in our atmosphere and preserving our natural resources, air quality, and overall health.
By implementing cost-effective and sustainable electrification solutions, building owners can lower carbon emissions, attract environmentally conscious tenants, improve marketability, and enhance the long-term value of their properties. However, electrifying an existing building can be challenging, expensive, and increase demand for an already overloaded grid network.
Making the switch to electrification
For many building owners, going through a large-scale retrofit project to install electric equipment and facing the increasing monthly cost of retail electricity can be daunting.
The good news is that alternatives are available to aid the transition away from natural gas, without retrofits or upfront capital investment.
Electrifying district energy leverages existing infrastructure to ensure access to reliable and environmentally friendly electrons.
Vicinity’s transition to electric boilers and industrial-scale heat pumps to generate carbon-free eSteam™ eliminates the costs associated with constructing new electric substations—costs that would otherwise be passed onto the ratepayers—and avoids the challenge of permitting and citing new electric infrastructure, especially when gaining public support in urban neighborhoods.
Vicinity’s access to transmission-level electricity rates helps overcome financial barriers associated with installing electrification technologies and is more effective and less disruptive than onsite alternatives like built-in electric boilers. eSteam™ is an invaluable tool for cities and building owners aiming to meet sustainability targets, comply with carbon ordinances, and fulfill tenants’ increasing demands for sustainability.
Understanding eSteam™
By opting for eSteam™, building owners can improve their energy efficiency, reduce their carbon footprint, and prioritize the health and safety of tenants—all while keeping their budgets on track. By installing electric boilers and heat pumps in its large central facilities, purchasing power from the grid at transmission-level rates, and harnessing the energy from rivers, Vicinity can offer all the benefits of the district energy service our customers count on without compromising reliability.
eSteam™ affordability
Our primary goal is to make eSteam™ accessible and affordable for our customers. Affordability is a cornerstone in Vicinity’s electrification plan, ensuring that the transition to carbon-free solutions remains as cost-effective as possible. We make eSteam™ affordable by utilizing our large systems, existing infrastructure, and access to transmission-level rates to help our customers achieve their sustainability goals.
Further, our energy experts are skilled in procurement and equipment dispatch, which allows us to aggregate large loads and operate our equipment optimally to achieve the highest efficiencies at the lowest cost. Vicinity employs two essential strategies:
“Valley” hunting: We can aggregate the load of our customer base and purchase energy when it is the least expensive. In the future, we will install thermal storage so we can purchase power when it is least expensive, produce eSteam™, store it, and distribute the stored steam when our customers need it.
Optimal equipment dispatch: With our team’s extensive operational experience, we can flexibly adapt and dispatch our generating assets to most optimally serve customers. When affordable renewable energy is accessible, we will procure electricity to produce eSteam™. However, when renewable energy becomes scarce or expensive, we can quickly switch to alternative steam-generating equipment to maintain uninterrupted operations and keep costs low.
Through these operational approaches, we are dedicated to delivering the best possible outcomes for our customers without compromise.
When considering the use of Variable Refrigerant Flow (VRF) systems, building owners should consider certain important factors that could lead to increased costs and concerns with energy efficiency and reliability.
Top considerations before installing VRF systems
VRF systems are a rapidly evolving solution and offer many appealing promises to building owners and property managers hoping to complete their projects without hiccups or large capital investments.
However, when looking past the initial benefits of VRF technology, it’s clear that there are some critical considerations to address before investing in these systems.
1. Maintenance and installation
While VRF systems are typically less expensive to install than chillers and boilers (hydronic systems), they require specialized training and maintenance expertise. VRF systems were introduced in Japan in the 1980s, but they are relatively new to the U.S., where it took 25 years to embrace this technology. Today, VRF systems command only 5% of the total heating and cooling market.
Because these refrigerant-based systems comprise several complex pieces of equipment, they are best served by technicians familiar with the best practices for VRF systems. Unlike hydronic systems, all parts for a VRF system are proprietary and made by a single manufacturer. Single sourcing provides the opportunity for many issues. First, the cost is dictated by a sole source manufacturer with no competition, so the aftermarket parts can be very costly. Second, supply chain issues can lead to problems in procuring alternative parts.
For today’s building owners opting for VRFs, qualified HVAC technicians will have to be kept onsite or hired to operate and perform preventative maintenance and repairs. As experts note, great care must be taken during installation to prevent moisture, dust, and contaminants from entering the refrigerant piping, and it must be installed tightly to prevent leaks. Improper installations run the risk of harmful leaks or premature equipment failures.
Unlike a chiller, which centrally locates refrigerant, VRF has many refrigerant lines running throughout a building. With a high volume of refrigerant lines and fittings, VRF systems have a higher probability of leaks, which are challenging to locate and repair. Furthering the issue, refrigerant lines are installed over occupied spaces; therefore, the refrigerant leaks into areas with occupants.
It’s important to prepare for ongoing maintenance costs, including regular inspections, filter replacements, and system cleaning when opting for VRFs. Alternative energy solutions, such as district energy, pose less of a concern regarding maintenance because energy generation is done offsite at a central facility and performed by the energy provider.
Risks associated with VRFs and onsite chillers, like potential refrigerant leaks, are eliminated and shifted to the central district energy facility, which is regulated and has strict safety standards to ensure staff and surrounding communities are safe. Further, maintenance is handled by district energy experts, meaning that building owners do not need to expend additional labor costs.
2. Electricity reliance
Electricity reliance should also be considered when thinking about installing VRF systems today. VRF systems require electricity to run, exposing buildings to multiple risks that are exacerbated in locations that experience high humidity and low temperatures.
Why? VRFs typically have to work harder than other heating and cooling systems. The compressors used in VRF systems are installed in a complex field refrigerant system and are forced to absorb outside air in heating mode. Air-source heat pumps can be more efficient, but rapidly lose efficiency, as the outside temperature drops below 40 degrees and require a backup heating source in cold climates like the Northeast. The compressor also spins faster when heating, reducing the life span of the bearings and compressor.
VRF systems are particularly unsuitable for certain buildings that have high energy and reliability needs or strict humidity control considerations, such as healthcare and life science labs. Should there be a power outage during a storm, the building cannot provide heating and cooling functions. This setback could endanger occupants and damage building assets and lab experiments. In buildings where indoor air quality (IAQ) is a concern, VRF systems would require increased emergency or standby generation capacity.
Electricity reliance also means that buildings are exposed to volatile electricity rates and the policy changes that may drive rates up, especially in cities like Baltimore and Philadelphia, where the electric grid’s capacity is struggling to meet demands.
Many buildings today are billed based on peak electricity usage rates, their usage during the hottest and coldest days of the year. VRFs can drive up peak demand and costs dramatically.
With VRFs, additional costs are incurred when building owners seek to retrofit older spaces. Owners need to consider the amount of electricity necessary for the older buildings because they typically do not have the required capacity and may require expensive upgrades.
Due to the unpredictable nature of retrofitting older buildings, district energy is appealing to owners that are looking to electrify but want to keep variable loads for heating or cooling low, creating a flat load profile with lower demand charges.
With a blend of hedging and market commodity prices, district energy solutions are able to guard against unexpected price spikes in the market and hedge fuel prices for a significant portion of our expected steam load for the heating season. Through these thoughtful hedging strategies, Vicinity’s customers experience more stable rates and greater budget certainty while achieving their sustainability goals.
3. Energy efficiency considerations
While VRFs are generally lauded for their high efficiency, their performance can vary depending on several factors. For example, some building owners have yet to be satisfied with the performance of their VRF systems when temperatures drop below 40 degrees.
Ultimately, certain factors influence whether a VRF system delivers the efficiency rates it promises:
System design
Installation of equipment
Outdoor temperatures
Original building design
Application of equipment
Ongoing maintenance of the building and VRF equipment
If installed incorrectly or improperly maintained, VRF systems will likely malfunction, causing a major disruption to building tenants. A study even found that VRF systems required replacement a decade earlier than other HVAC systems, which is why they are widely regarded as ‘throwaway’ systems.
Disposing of defective VRF equipment and replacing it altogether rather than repairing it is common practice. This practice can lead to a lapse in service, resulting in the wasteful disposal of mechanical equipment.
To avoid interrupted service, building owners should evaluate their potential VRF system’s energy efficiency ratings, seasonal performance, and the potential for energy savings in their specific building before making a purchase decision.
4. Capital costs
The average lifespan of a compressor is about 10 to 15 years, and the overall VRF system is life 15 to 20 years. Once the VRF system has reached the end of its useful life, the entire building’s HVAC system needs to be replaced. Even the refrigerant piping throughout the building is replaced, due to the changing requirements of new refrigerants.
A study done by the Washington State University estimated that the installed cost of a VRF system is approximately $18 per square foot served – compared with a code-minimum system cost of about $12 to $15 per square foot, a price difference that compounds quickly over the scale of an entire building.
Due to ever-more stringent indoor air quality requirements, specialized central air handlers, called dedicated outdoor air units, still require ductwork for each occupied space.
5. Building infrastructure requirements and risks
Infrastructure requirements for VRFs are critical for building owners to consider, especially when looking to avoid additional capital costs. These systems require specific infrastructure considerations, such as dedicated space for outdoor units, indoor unit placement, and appropriate refrigerant piping routes.
Owners should evaluate whether their building can accommodate these requirements without significant modifications or additional expenses. VRF systems are not ideal for use in high-rise buildings because the maximum allowable vertical distance between an outdoor unit and its farthest indoor unit is approximately 150 ft., and the maximum vertical distance between two individual indoor units is about 45 ft., meaning that valuable space on multiple floors is occupied by VRF equipment.
VRF systems are also typically housed on rooftops, precluding that space from being used for amenities like lounges, gardens, or rooftop pools, and require several roof penetrations, which can expose building envelopes to structural issues and potential leaks.
In comparison, district energy only requires about a parking space worth of equipment, typically in the basement of a building, and allows owners to maximize rooftop and basement spaces.
6. Use of refrigerants
Refrigerant-based systems like VRFs expose buildings to safety and financial risks, whether it be requiring specialized maintenance for repairs, or susceptibility to leaks that are potentially harmful to building occupants and the environment.
VRF refrigerants are flammable due to their base of propane and butane. The flammability of some refrigerants such as R32 is becoming a safety concern due to the high amount of refrigerant that is piped throughout a building within VRF systems, and their high potential for leaks. For this reason, building standards such as ASHRAE Standard 34-2019 have been established to limit the concentration of refrigerants within occupied spaces. Regulations on refrigerants are often changing. As regulations change, systems will require significant modifications or total replacement to be compatible with new refrigerants.
VRF system leaks are caused by several factors — one is chemical corrosion. The production of condensation and the use of chlorine in VRF pipe insulation can cause chemical corrosion of aluminum piping in the system. Holes in the aluminum piping can allow refrigerant to leak and cause the systems to stop performing and ultimately fail.
Making the best choice for commercial buildings
When planning for heating and cooling needs, building owners should consider all options and identify the best choice for reducing risk and ongoing capital investments. Below is a list of questions to help building owners and operators make the best choice for their buildings:
Life-cycle cost: What are the installation and ongoing costs associated with the VRF equipment or provider?
Maintenance: What maintenance is typically required for the VRF system? Does the VRF provider include service from specialized technicians?
Service life: How long does the VRF equipment typically last?
Regulatory compliance: What does the current regulatory landscape look like for VRF systems and their use of refrigerants?
Rooftop penetration: Can this building accommodate the rooftop penetration required by the VRF equipment?
Reliability: How critical are the building’s daily operations? Do they rely on uninterrupted energy to maintain strict indoor air quality (IAQ) standards?
Kendall Square in Cambridge, Massachusetts, has undergone many changes since the 1800s. Once a heavily industrial area, Kendall is now home to the world’s leading biotech and research facilities.
The Boston Woven Hose and Rubber Company—an organization that produced fire hoses, ink stamps, and ink, along with the candy manufacturers along Main Street—was one of the first customers served by Vicinity’s original Kendall Square facility. The main steam line that runs from Kendall Station through Kendall Square was installed to feed that hose and rubber company.
In the sixties, these industrial companies gave way to new technology. For example, the Polaroid Corporation was founded right here in Cambridge by Edwin Land and George W. Wheelwright III in 1937.
At this point, the invention of the Polaroid camera was groundbreaking. The company built an empire from that idea, and employed research and university graduates to build it. In the 1980s, with the advent of digital photography, the company all but evaporated. However, biotech later reinvented the area using the same model and university brain power to find cures for chronic illnesses. Today, Edwin H. Land Blvd, named after the inventor of the Polaroid camera, runs behind our Kendall Square facility, honoring his legacy.
At the end of the line is a company called Cambridge Brands, the only place in the world that makes Junior Mints! The factory produces 15 million Junior Mints a day.
Visitors to Kendall Square often have trouble believing that an operating energy facility is in the area. This neighborhood looked drastically different when our facility was built in the 1940s. Today, a fully functional city has sprouted around our facility with lively restaurants, farmers’ markets, kayak renting, and more.
As Kendall Square has evolved, our facility and reliable steam services have remained constant. While some processes and fuels have changed, Vicinity’s system has provided thermal energy to Boston and Cambridge for almost 100 years. Despite our old roots, Vicinity’s mission is at the forefront of decarbonizing both Cambridge and Boston. Leveraging existing infrastructure, our facility is the most viable means to quickly and effectively decarbonize the buildings we serve in a timely and efficient manner.
Facility history
Vicinity’s Cambridge location is currently home to three facilities, with the original facility being a yellow brick building built in 1948 by the Cambridge Electric Light Company. This building contained three 1300 PSI power boilers and was constructed as a coal-fired Rankine cycle facility, meaning the power boilers drove over condensing turbines. The facility also contained three 25 MW Westinghouse Steam Turbines and used the river for cooling as part of its original design. The main steam line runs from Kendall Station through Kendall Square and was installed to feed the Boston Woven Hose and Rubber Company.
When the combustion turbine was put in, they needed to bridge the two systems to make a combined cycle plant. Today, all of our systems are tied together, so steam, electricity, condensate, and all auxiliaries are now shared between the two plants.
In 1900, coal was primarily used as an energy source, so the facility was designed to burn coal, but that luckily lasted only a short time. The coal was gradually converted to heavy oils and then into natural gas. Today, we use the efficient combined heat and power (CHP) process to generate heat and electricity simultaneously.
A unique feature of district energy is that it is fuel agnostic, which allows these systems to utilize any fuel source to generate steam. Over the years, our facilities have pivoted as more sustainable fuel sources have become available, and we are continuing the legacy of prioritizing cleaner energy.
Energy goes out through two different steam lines within our facility. One is over the Longfellow Bridge. Anyone who has seen a movie filmed in Boston has likely noticed an iconic shot of this bridge.
The second steam line comes out of the plant and goes past the Cambridge Parkway, the Museum of Science, and further into the city of Boston.
The canal behind our facility was once used for commerce, running all the way up into the city. Barges would come up through the canal to deliver coal, oil, and other goods into the city of Cambridge. With the decline of coal-powered energy, the canal was truncated and is now appreciated by residents and tourists who use the water for recreational activities such as canoeing and kayaking.
When our facility was built, the city required a boardwalk for pedestrians and public use. We maintain the boardwalk to this day, and the public frequently enjoys it.
JFK & NASA
A fun fact about our Kendall facility is its connection to John F. Kennedy (JFK) and NASA. In the early 1960s, JFK, originally from Cambridge, set the ambitious goal of going to the moon. He famously stated, “We choose to go to the moon in this decade and do the other things, not because they are easy, but because they are hard.”
And so, to achieve his goal, he needed to develop a space authority known today as NASA. In 1964, Kendall Square became home to NASA’s Electronics Research Center (ERC) to support NASA’s electronics research during the Apollo era and served as a graduate and post-graduate training center.
The ERC needed power, and our Kendall facility was the perfect location to house all the materials necessary to accommodate NASA’s Kendall Square operations.
Vicinity aquires Kendall Station
In 2013, the Lechmere Viaduct Steam Line doubled its green steam capacity to serve Boston, making Kendall Station’s combined heat and power the main source of thermal district energy in the city. The following year, Vicinity officially acquired Kendall Station with partner I-Squared and began investing in the system’s longevity and reliability for customers.
Vicinity has since remained committed to improving the facility to meet the growing needs of Boston and Cambridge while opting to use the greenest technologies available. From 2015 to 2018, Vicinity upgraded the water treatment system, converted the system to dual fuel, and installed a new back-pressure steam turbine and an air-cooled condenser to eliminate heat discharge to the river. We made an $8 million investment to double the plant’s water makeup capacity and installed a system to utilize 100% Charles River water for purification purposes.
Vicinity additionally replaced the air intake system for the GE 7FA Gas Turbine and upgraded the turbine to the latest technology to maximize efficiency. In 2021, Vicinity implemented biogenic fuels derived from waste vegetable oil and fats discarded by the food service industry. Biofuels are significantly cleaner than gasoline and fully biodegradable, so this change resulted in fewer greenhouse gas emissions and improved local air and water quality.
Vicinity’s recent clean energy strides at Kendall
Most recently, Vicinity has been researching, sourcing, purchasing, and installing an electric boiler in the main turbine hall. Vicinity will gradually transition away from its cogeneration turbine by installing electric boilers and heat pumps at the Kendall facility. Furthermore, Vicinity plans to purchase wholesale renewable power to generate and distribute eSteam™, a carbon-free renewable thermal energy product, to customers.
On April 5, 2023, Vicinity Energy announced its partnership with Augsburg, Germany-based MAN Energy Solutions to collaborate in developing low-temperature source heat pump systems for steam generation. Vicinity plans to install an industrial-scale heat pump complex at Kendall by 2026. Once constructed, Vicinity’s heat pump complex will be the largest in Massachusetts.
Vicinity’s first heat pump complex, which draws from proven examples in Europe, will be powered by renewable electricity to safely and efficiently harvest energy from the Charles River, returning it at a lower temperature. Because the heating sector accounts for 30-40 percent of global CO2 emissions, the global energy transition can only succeed with considerable strides to decarbonize heat. Instead of burning fossil fuels for heating purposes, water-source heat pumps use heat sources, such as lakes, rivers, or the ocean, efficiently.
Vicinity follows the example of a few cutting-edge European cities, such as Glasgow, Scotland, and Drammen, Norway. In 2021, the first water-sourced heat pump opened in Glasgow, allowing them to tap into the River Clyde, just as Vicinity will do with the Charles River.
Today, the Kansas City Grand Avenue district steam and chilled water plant serves thermal energy to 8.5 million square feet of downtown Kansas City buildings for their heating and cooling needs.
In 1900, the Metropolitan Street Railway Company purchased the Kansas City Electric Light Company and began building the Missouri River Power Station. Completed in 1904 and dubbed “The Big Plant”, it was reported to be the largest electric generation station outside of New York City. The plant was built for $2.5 million, equivalent to $85 million today.
The combination of a streetcar and lighting company was a natural marriage for investors at the time, as streetcars operated during the daytime and the lighting was used for nighttime streetlights, which allowed the plant to generate revenue 24 hours a day.
At the same time, the Kansas City Heating Company was formed by the electric company stakeholders, which built steam plants in the downtown area to meet the needs of a growing central business district. By 1917, three central steam plants were heating downtown businesses. The plants were located at 6th and Baltimore, 1312 Baltimore, and 1311 Wyandotte.
As the uses for electricity grew and the streetcar gave way to automobiles, in 1927 Kansas City Power and Light Company (KCPL) bought the Missouri River Power Station from the financially strapped Street Railway Company. The plant was renamed the Grand Avenue Plant, and KCPL converted the plant from 25 cycle to 60 cycle power.
Thus, the Grand Avenue Plant became the primary electrical producer for downtown Kansas City. From 1928 to 1957, KCPL began consolidating steam production to the Grand Avenue Plant through the installation of high-pressure steam mains that connected the plant to McGee and Wyandotte Streets.
Today, 3 of the 4 boilers in service are combustion engineering ceiling hung, built-in-place style boilers that are designed to accept multiple fuel types. The large steel structure of the Grand Avenue Plant is designed to accommodate the weight of the 6-story tall boilers, which can produce 350,000 lbs./hr, and grow 6 to 7 inches when heated. The 4th boiler in service today is a packaged boiler that was installed in 1967, which has a capacity of 200,000 lbs./hr.
A growing history
In 1989, KCPL sold the steam production at Grand Avenue and the downtown steam distribution network to Trigen, whose primary focus was district energy. KCPL kept the steam turbine electric generators and bought steam from Trigen to produce electricity until 2001, when the turbines were retired. In 1998, Trigen completed a chilled water production facility at the Grand Avenue plant and distribution piping down McGee Street that would serve the City, County, and Federal buildings. The chilled water system began adding more customers on the east side of downtown KC such as the T-Mobile Center and Oak Tower.
Kansas City Grand Avenue Station chillers
In 2019, a 6,000 ft. chilled water lateral was completed down Wyandotte Street to serve the west side of downtown KC, with an anchor customer of the Lowes Hotel. This lateral has also begun serving the Convention Center, Flashcube apartments, Hotel Phillips, and 114 W. 11th Street downtown.
Today, additional buildings connected to the Vicinity system include: T-Mobile Center, 909 Walnut Apartments, Lowes Hotel, the Marriott Hotel, City Hall, the Kansas City Library, and the Lifted Spirits Distillery.
Fuel switching, efficiency, and decarbonization
District energy systems have shown great flexibility in fuel switching to help reduce both cost and carbon emissions. In 2017 to 2018, the Grand Avenue plant converted from coal to natural gas, which has collectively reduced greenhouse gas emissions in Kansas City by 33,000 tons, the equivalent of removing 7,100 cars from the road each year.
Today, the Grand Avenue plant uses a highly efficient process called combined heat and power (CHP), which uses both the heat and pressure of energy generation to achieve efficiencies from 70-80% as opposed to conventional generation. In comparison, conventional power generation from gas or steam turbines can only achieve around 30-40% efficiency.
The Grand Avenue Plant is uniquely positioned for the next fuel switch of electrification to achieve zero net carbon emissions. With access to the Missouri River to be utilized by an industrial steam generating heat pump complex, and proximity to transmission-level power for lower cost electricity, electrification will be achieved at a lower cost and greater reliability for Vicinity’s Kansas City customers.
Earth Day was officially recognized in 1970 when U.S. Senator Gaylord Nelson proposed the creation of the holiday in order to call attention to the need for national environmental regulations.
Twenty million Americans demonstrated across the country in favor of the Senator’s proposal, and Congress officially authorized the creation of a new federal agency to tackle environmental issues: the U.S. Environmental Protection Agency.
Today, Earth Day is celebrated around the world as millions of people get involved in their communities and spread awareness for the environmental movement and the fight against climate change.
The theme for this years’ Earth Day, “Invest in our Planet”, couldn’t be timelier. The health of our planet is dependent on businesses and governments working together to decarbonize their operations and preserve our Earth’s natural resources.
At Vicinity, we’re proud to be working with our customers, communities, and local government to decarbonize all our operations around the country.
The path to net zero carbon
This year, our team has made significant progress in our commitment to sustainabilty and decarbonization. To achieve net zero carbon emissions across our operations by 2050, we have begun making critical changes at our central facilities in Boston, Massachusetts, with our other locations to follow.
With the help of eSteam™, we are now able to offer renewable thermal energy to our customers. This innovative carbon-free product is designed to rapidly decarbonize the highest source of emissions in major cities: commercial buildings.
To begin offering eSteam™, we are installing electric boilers, industrial-scale heat pumps, and thermal storage at our central facilities. This year, these plans have become a reality.
Kicking off our electrification plans
Our first electric asset will enter service in late 2024, when we will procure electricity from renewable, carbon-free energy sources such as wind, solar, and hydro to generate eSteam™.
In 2022, our team successfully deconstructed a steam turbine at our Kendall, MA facility. This turbine utilized natural gas, and a 42 MW electric boiler will be installed in its place. The electric boiler will enter service in 2024, allowing our customers to utilize carbon-free electrified steam to heat and cool their buildings.
How will this work? We will purchase wholesale carbon-free power from the grid, import the power to our facility through a co-located electric substation, and convert the power into steam in this electric boiler.
An electric boiler uses electricity to turn water into high-pressure steam. Water is injected across two opposingly charged plates and, as the water strikes the opposingly charged plate, the water completes the electrical circuit and is instantaneously heated into steam. The result will be the generation and distribution of electrified steam—renewable thermal energy.
Boston Mayor Michelle Wu helped commemorate the deconstruction of the steam turbine in November 2022. “It is clear that the work of ensuring our planet remains livable is going to require all of us: every level of government, business, and community,” she noted.
The first business to utilize eSteam™ is Boston-based developer IQHQ, whose like-minded focus on sustainability made our partnership a great fit.
Their development at 109 Brookline Avenue will be completely powered by carbon-free eSteam™, making the office and laboratory space one of Boston’s first carbon-neutral buildings.
IQHQ is also utilizing eSteam™ at its Fenway Center development, a mixed-use campus that will include nearly 1 million square feet of commercial office and lab space. This expansion into the Fenway neighborhood paves the way for more building owners and property managers to leverage eSteam™ for building decarbonization in Boston.
Partnering with MAN Energy on industrial-scale heat pumps
This April, we took another step in our plans to electrify by partnering with Augsburg-Germany based MAN Energy Solutions to develop low-temperature source heat pump systems.
Rather than utilize natural gas, we will work with MAN to install an industrial-scale heat pump complex at our Kendall facility by 2026. Drawing inspiration from success stories in Europe, heat pumps will allow us to extract energy from the Charles River and use it to preheat water for our new electric boiler, improving the overall efficiency of the system.
From there, the water will be returned to the Charles River at a lower temperature so as to not damage the river’s ecosystems.
Over the next few years, our other district energy systems in Philadelphia and Kansas City, for example, will employ similar technologies to achieve net zero carbon emissions and offer eSteam™ to our customers.
Vicinity Energy teams commemorate Earth Day
This year, Vicinity’s teams around the country took action to improve the environment and spread awareness of the environmental movement throughout Earth Week, leading up to Earth Day on April 22.
From cleaning up natural spaces to labelling stormwater drains, our employees take pride in caring for the land around our facilities and bettering our communities for everyone.
Boston and Cambridge
Our Boston and Cambridge team partnered with the Department of Public Works to label 100 storm drains around our Kendall facility in Kendall Square, Cambridge. The team labelled storm drains with a no dumping sign to help make the drains more visible and to remind people not to discharge hazardous materials, waste, or other pollution into these structures as they flow directly into the Charles River.
Several teams from Vicinity’s Boston and Cambridge locations participated in the Built Environment+ Sustainability Scavenger Hunt. They explored sustainable practices in the built environment and completed daily missions around our offices and their homes.
Philadelphia
Our Philadelphia team used a map from the water department to lay down stormwater inlet medallions at over 60 drains indicating that they lead to the Schuylkill River. This initiative plays a part in preventing water pollution and illegal dumping in our community.
Our Philadelphia team worked with our neighbors PECO and the Schuylkill River Development Corp to clean up a section of the Schuylkill River trail behind our Philadelphia facility. The group collected more than 20 bags of waste and debris and disposed of it properly.
The Vicinity Philadelphia team hosted a table at Naturepalooza, an annual Earth Day celebration hosted by the Schuylkill Center for Environmental Education. Our environmental craft experiment station used natural materials to make paint, including carrots, grass, and red cabbage. We also brought along our Carbon Capture cornhole game to teach everyone about the importance of trees, and everyone who played got an organic lollipop.
Baltimore
Our Baltimore team constructed a new pollinator garden at our facility, and planted some native wildflower seeds and a native tree. They also installed some bird feeders and an insect feeder to help the new garden thrive!
Oklahoma City
Our Oklahoma City team recently participated in a joint cleanup event hosted by OG+E Energy Group, along with a total of 80 participants from the OKC area. They picked up trash along the Oklahoma River that flows within a mile of our facility.
The City of Grand Rapids, in partnership with Thomas Edison, created the Grand Rapids Edison Light and Fuel Co., which kickstarted operations at the southwest corner of West Fulton Street and Ottawa Avenue. Having been designed by the Edison Light Co., the plant was handsomely styled with floors of polished hardwood and 16-foot walls of white pine with a natural finish. The four coal-fed boilers were tubular and rated at 150 H.P., each at 80 pounds of pressure to generate electricity and heating to support the growing city.
The engine and dynamo room housed three Taylor Beck high speed, non-condensing engines, each belted to a pair of Edison 125-volt direct current generators. The Fulton Street Plant not only powered the 19th century city’s trolley cars and incandescent street lightning, but also supported the rapidly growing furniture industry.
In 1897, the first heating mains were installed in a new building next door, at the southeast corner of West Fulton and Market. The steam was turned on on October 15, 1897 and to this day, the Grand Rapids Heating Plant occupies that site.
By 1911, a report in the Common Council minutes revealed that 39 facilities were using steam heat from the central station. Contrary to popular belief at the time, there were no steam tunnels beneath the city of Grand Rapids, with the exception of a very early tunnel beneath Union Station which no longer exists.
An exciting system revamp
Consumers Energy Co. acquired operations of the facility in 1915, and eight years later, the plant was rebuilt in two different sections. From 1922 to 1927, the steam distribution system was further expanded into the downtown Grand Rapids area. These new steam mains replaced all existing mains installed prior to 1916. While low pressure pipes could originally be found under streets, newer installations were placed under sidewalks as they were cheaper and easier to access.
When urban renewal efforts took the city by storm in 1965, the old boilers were retired and replaced with three 100,000 pound-per-hour gas or oil-fired boilers. In addition, 125-pound steam mains were constructed to serve new buildings in the lower Monroe Street. In 1970, the fourth 150,000 pound-per-hour boiler was installed alongside a 125-pound steam main to serve St. Mary’s Free Bed Hospital Complex.
Kent County purchased the District Heating and Cooling Operations (DHCO) from Consumers Energy Co. in May of 1986.
Vicinity takes over operations
In 2008, Vicinity Energy acquired the Grand Rapids district energy facility and steam system from Kent County. The system is now primarily fed by natural gas, with a view toward the integration of higher environmentally sustainable fuel sources. Through investments in high efficiency technology and green energy sourcing, Vicinity delivers steam with a 38% lower carbon footprint vs. traditional boiler plants.
Today, the steam distribution system consists of approximately seven miles of underground pipes: five miles of underground high-pressure distribution and two miles of low-pressure. Customers use steam for critical processes such as space heating sterilization, laundry, culinary use, humidification, domestic hot water, and melting snow.
The high-pressure system is nominally operated at 120 psig, and monitored at the Fulton Steam Plant through local gauges and at remote locations in the distribution system to ensure high reliability to all customers.
Saint Mary’s Hospital is the largest single customer of Vicinity’s Grand Rapids operations, while the City of Grand Rapids is the system’s largest customer in aggregate, with a total of 15 buildings on the system. Other major buildings included the Public Museum, City Hall, Federal Building, State Building, County Courthouse, Amway Grand Plaza, Plaza Towers, the Van Andel Institute, DeVos Convention Center, Downtown Parking Ramps, the Van Andel Arena, and the Monroe Mall, along with various snow melt systems.
The advantages of district energy
Today, the Vicinity-owned and operated district energy system serves 112 individual properties throughout Grand Rapids including hospitals, universities, hotels, and other residential and commercial buildings. Vicinity Energy has invested over $10 million in plant and distribution system improvements to increase the facility’s energy reliability, resiliency, and cost-effectiveness, in addition to reducing greenhouse gas (GHG) emissions by more than 11,000 tons annually.
There are various advantages to opting for a district energy system like Vicinity’s, especially for older buildings undergoing restoration.
District energy service replaces the need for in-house boilers and domestic water heating systems in many of the city’s most prominent buildings, saving installation and maintenance costs, as well as valuable building space, and reduces overall risk of operations.
In Grand Rapids, where cold weather is frequent, district energy is the optimal choice for reliability needs: the system has built-in redundancy within their central plants and networks, meaning it can leverage multiple generating assets and fuel, power, and water sources.
The city and community of Grand Rapids is committed to addressing climate change and district energy is also meeting the demands for more sustainable energy service.
With its history of fuel switching, from coal to oil to natural gas, district energy is uniquely poised to switch to more sustainable fuel sources like renewables as they become available. As part of Vicinity’s clean energy future roadmap, all our operations around the country will be decarbonized by 2050 or sooner, and in turn reducing the carbon footprint of Grand Rapids.
Exciting new territory
In February of 2023, Vicinity proudly welcomed new Grand Rapids-based employees and celebrated taking over operations of the Kent County Waste-to-Energy facility. The takeover of this 18MW plant is expected to save Kent County in operating costs annually while reinforcing Vicinity’s commitment to quality service, the environment, and the local workforce.
Vicinity has welcomed the existing plant employees to its team and will hire more team members to ensure safe, efficient, and reliable services are delivered to the residents and businesses served by the facility. This partnership marks a critical milestone in Vicinity’s commitment to sustainability and bringing new jobs and services to West Michigan.
Last year saw drastic changes in the natural gas market, from the ongoing war in Ukraine to record high energy prices to fluctuating natural gas inventories.
As we reported in our last natural gas outlook, the team at Vicinity is constantly monitoring the state of the fuel markets. United States natural gas spot prices saw lower prices throughout the country during the first two months of 2023, as mild weather patterns brought overall gas use to a five-year low of 110.65 Bcf/d for the two-month period.
U.S. temperatures averaged 42.8°F between January and February this winter, the third-highest average in the last 17 years. At the start of the winter season, the mild weather caused gas prices to reduce significantly, reaching pre-COVID-19 levels with the winter November 2023 through March 2024 time period now trading at an almost 38% decrease compared to highs seen for the corresponding months in 2022.
In this market update, we want to update you on what drove this price reduction, the state of global and domestic gas storage today, and predictions for the rest of the year.
By the numbers: what we know and what we can expect
The start of this winter was very mild: this year saw the seventh warmest January on record in North America, leading to lower-than-expected natural gas consumption. In January 2023, the Henry Hub spot price of natural gas averaged $3.27 per MMBtu, down $2/MMBtu from December 2022.
This shift led the U.S. Energy Information Administration (EIA) to forecast a Henry Hub spot price of $3.00/MMBtu for 2023. As the EIA noted, the largest decline in consumption was related to residential and commercial demand. Natural gas prices remain volatile; extreme weather events and cold temperatures could still pressure prices through March 2023.
An additional factor that could influence natural gas demand in the U.S. is the Freeport LNG export facility coming back online. The 3-train LNG export plant resumed partial operations in February 2023 and received confirmation from regulators on March 8, 2023 that the site has been cleared to resume its full capacity of 2.2 billion cubic feet per day. This incremental LNG Export capacity will create additional demand for natural gas.
In June 2022, a fire at Freeport LNG’s natural gas plant in South Texas caused a full 8-month shutdown of the facility, leading to a decrease in U.S. liquefied natural gas (LNG) export capacity. During the shutdown, the U.S. reduced its LNG exports by 2.2 BCF/day.
After the partial restart of the plant, LNG demand grew as gas flows to all seven of the big U.S. LNG export plants rose to 13.5 bcf/d in March, up 5.5% from 12.8 bcf/d in February. The top destination for U.S. LNG cargoes are countries in Europe who have decreased delivered pipeline gas supply from Russia.
As a result of the milder weather patterns, steady production (97.5 BCF/d for the two-month period), and the Freeport LNG outage, gas storage inventories now stand at 2.1 TCF, which is a 22% surplus to the 5-year average for the same period. Even more notable is the surplus to year-ago storage levels which is now 32%.
Natural gas and climate change
This winter’s record-low and high temperatures and subsequent natural gas demand fluctuations have sparked conversations on the many impacts of climate change.
As the Natural Resources Defense Council (NRDC) explains, global warming occurs when greenhouse gases like CO2 collect in the atmosphere and absorb sunlight and solar radiation that have bounced off the earth’s surface. These pollutants, which remain in the atmosphere for many years, trap the heat and cause the planet to get hotter in the long term.
In this way, global warming may contribute to more extreme winter weather. As water vapor is trapped in our atmosphere later and later in the year, the resulting precipitation leads to heavier snowfall when temperatures eventually drop.
We are already seeing the impact of global warming with warmer-than-normal winters and extreme heat in the summer months. In fact, since 1896, average winter temperatures across the continental U.S. have increased by nearly 3°F. Spring temperatures have increased by about 2°F, while summer and fall temperatures have increased by about 1.5°F.
How can Vicinity help?
The transition away from fossil fuels to renewable energy sources is leading the charge for the most energy-intensive industries around the world.
Heating, electricity, and energy transportation are consistently the single highest contributor to global carbon emissions. In 2020, it was reported that 76% of global carbon emissions came from the energy sector.
To reduce this staggering amount of carbon emissions, it is essential to transition to renewable energy sources and move away from fossil fuel use.
Here at Vicinity Energy, we are working with our customers, communities, and local government to decarbonize our operations across the country and do our part to reduce the impact of the energy sector on the earth’s warming atmosphere.
Vicinity is currently in the process of electrifying its operations to offer an affordable, carbon-free path for the commercial buildings we serve. Our first electric boiler will enter service in 2024, immediately allowing our customers to harness carbon-free energy and decarbonize their buildings.
Looking ahead
With the many fluctuations in the natural gas market that we’ve seen this year, it’s clear that the benefits of investing in renewables far outweigh those of continuing to utilize natural gas to power our communities.
Now is the time to fuel the transition to an entirely clean energy future and seize every opportunity to encourage the building of green infrastructure and invest in carbon-free energy sources.
2022 has been a momentous year for climate progress, both in the U.S. and around the world. Here at Vicinity, we’re reflecting on some of the most critical moments this year for both the global climate community and our company’s role as a clean energy leader.
Global climate progress
2022 was a year for groundbreaking climate legislation and productive talks around the world in efforts to curb the negative effects of climate change.
In August, the U.S. Senate reached a groundbreaking $369 billion climate agreement, The Inflation Reduction Act. The Act is a milestone victory for the green sector, with a record-shattering investment in emissions-free energy production. It promises to cut carbon emissions by 40% nationwide and massively overhaul how Americans get their electricity, heating, and cooling.
The Inflation Reduction Act incentivizes developers to build new emissions-free electricity sources, such as geothermal heating, wind turbines, and solar panels, by offering billions of dollars in tax credits over ten years. Overall, the legislation is exciting as it stands to rapidly speed up the U.S.’s transition away from fossil fuels and bring us closer to the emissions targets set in the Paris Climate Accord.
In December, the Biden Administration also announced the first-ever Federal Building Performance Standard (BPS), which aims to cut energy use and electrify equipment and appliances in 30% of Federally owned building space by 2030.
This announcement paves the way for Federal buildings to adopt cleaner, more energy-efficient technologies. This transition to green energy is critical to achieving President Biden’s net-zero emissions goal across all Federal buildings by 2045.
In November, COP27 was held in Sharm el-Sheikh, Egypt, and a slew of promising conversations came out of the discussions between global leaders.
‘Greenwashing’ was a key topic of conversation at this year’s COP27 talks. The UN released a report taking aim at “greenwashing” and calling for private companies and city governments that have made net-zero pledges to publicly report on their progress with verified information. As more and more organizations pledge their carbon reductions goals, global leaders are calling for accountability and transparency in the steps they are taking to meet these goals.
Our Clean Energy Future progress
This year, Vicinity has taken some critical steps to reach net zero carbon emissions across all our operations by 2050 or sooner.
In April, we launched eSteam™, an innovative carbon-free product designed to rapidly decarbonize the highest source of emissions in major cities: commercial buildings.
We are offering renewable thermal energy to our customers by installing electric boilers, industrial-scale heat pumps, and thermal storage at our central facilities starting in Boston and Cambridge, with our other districts to follow.
Our first electric asset will enter service in late 2024, when we will procure electricity from renewable, carbon-free energy sources such as wind, solar, and hydro to generate eSteam™.
IQHQ will be Vicinity’s first customer to power the rapid decarbonization of its buildings in Boston with carbon-free eSteam™.
In November, we officially kicked off our electrification plans with the deconstruction of a steam turbine at the Kendall Green Energy Cogeneration Facility. We will install an electric boiler in its place that will enter service in 2024 and help our customers in Boston and Cambridge decarbonize their buildings.
Boston Mayor Michelle Wu helped commemorate the day at our Kendall facility. “It is clear that the work of ensuring our planet remains livable is going to require all of us: every level of government, business, and community,” Mayor Wu noted at the event. “We’re very grateful that Vicinity’s carbon-free eSteam™ product will power the leading industries we’re already known for here in Greater Boston such as life sciences, healthcare, commercial real estate, and many more.”
While our electrification plans have taken shape this year, we’ve also continued to serve our customers with the most sustainable energy possible and repurpose existing equipment at our facilities.
We’ve continued to utilize biogenic fuels to power our operations in Boston, Cambridge, and Philadelphia. LR100 is a unique biogenic fuel derived from waste cooking oil and fats discarded by the local food service industry.
This fuel has helped us reduce our reliance on fossil fuels and allows us to generate lower-carbon steam in the very same communities from which it came. The use of biogenic fuels in our Philadelphia facility has helped reduce Vicinity cut carbon emissions by 12,200 tons, or the equivalent of removing 2,650 cars from Philadelphia’s roads each year.
To store this biogenic fuel and provide our Boston and Cambridge customers with low-carbon steam, our Kendall Cogeneration Facility has repurposed an old natural gas boiler to store the biogenic fuel.
Our Environmental Health & Safety teams around the country were also hard at work this year to better communities and lead green projects at our facilities.
Some of this work includes:
Lighting & water audits
PV array planning
Planting trees
Electric vehicles
Groundwater injection
Fire safety and review
Refillable water stations
Recycling initiatives, including recycling around 200 lbs. of Keurig cups with TerraCycle
Supporting environmental legislation at the local, state, and federal levels
Women at Vicinity Energy (W@VE)
This year, Vicinity proudly rolled out “W@VE”, our new women’s network dedicated to fostering career development and leadership opportunities for women at Vicinity.
Some of the objectives established for the program include constructing a supportive community of women, attracting talent for career advancement and leadership opportunities, building a network of advocates and mentors to improve diversity and inclusion within the organization, and providing mentoring and access to senior leadership.
Our co-directors Jaklyn Cross and Medina Jones kickstarted this program back in October and have since led some empowering discussions regarding the two books we have read this year, “Own the Room” by Amy Jen Su and Muriel Maigan and “You are a Badass” by Jen Sincero. We look forward to more opportunities to cultivate the talent of women in our community as they continue to embrace their individuality and strive towards achieving their full potential.
Awards we received
In 2022, we were honored to receive several awards by industry organizations, local communities, and administrations. We are grateful for the teams, partners, and communities that made this year so monumental.
For the second year in a row, Vicinity has been voted the “Best Alternative Energy Company in Philadelphia” by the local community in Metro Philadelphia’s 2022 Philly’s Best awards.
In June, our Kansas City team was awarded with an Outstanding Mechanical Installation (OMI) Award in the large mechanical project class by the Mechanical Contractors Association (MCA) of Kansas City, Missouri, for our chilled water lateral expansion project.
The project expanded Vicinity’s district energy system piping 12,000 ft. to serve chilled water to the west side of Kansas City’s Central Business District. In conjunction with contractors Enerfab and engineers at Davidson Architecture + Engineering, the project included the interconnection of three customer buildings to be served by the lateral expansion: Flashcube apartments, KC Downtown Convention Center Hotel, and the MC Realty-owned 114 W. 11th Street.
The annual award highlights industry growth, recognizing the district energy systems with the largest total number of buildings and building area in square feet committed or recommitted to district energy service by IDEA member systems.
In April, Vicinity’s Philadelphia team was honored for our commitment to sustainability with the Governor’s Award for Environmental Excellence by Governor Tom Wolf and the Pennsylvania Department of Environmental Protection (DEP).
The annual award acknowledges schools, businesses, community organizations, and civic leaders working on projects that promote environmental stewardship in Pennsylvania. Our team was recognized for the incorporation of LR100™ into our fuel mix, a biogenic fuel composed of waste vegetable oil collected from Philadelphia’s restaurants and food services businesses.
Community initiatives
Throughout 2022, our teams across regions have prioritized giving back to their local communities. Vicinity values these hands-on community engagement opportunities to increase our understanding of the communities we serve and to build long-lasting relationships with local organizations who share our passion for public service and supporting those in need.
Early this summer, team Vicinity competed in the Boston Kendall Square Challenge to raise money for five local nonprofits.
Life science and tech companies throughout the region spent an afternoon competing in physical, intellectual, and community-based missions across Kendall Square. This event underscored the interconnectedness of these forward-thinking companies and gave way for some healthy community-based competition.
Back in August, our South Region Green Solutions team donated over 100 backpacks to a local Baltimore public school to gear up students for the upcoming school year. Each backpack came equipped with a coloring page to kick start the year on a positive note.
Vicinity proudly serves as a partner in education with the Baltimore City Public Schools, and we look forward to more Baltimore-based community service in the new year!
In September, our Philly team partnered up with Friends of Schuylkill River Park, a non-profit in Southwest Center City. The group’s mission is to preserve, beautify, improve, and maintain the family-favorite park in Philadelphia, Pennsylvania.
Together, the volunteers built and stained five new picnic tables for public use at the park. Going into 2023, Vicinity looks forward to more projects on the horizon with this group.
This past November, we honored Veterans Day and the Military Community by joining forces with our Grays Ferry neighbors at the Penn Vet Working Dog Center.
The Penn Vet Working Dog Center has its roots in the search and rescue dogs that saved countless lives searching the rubble of 9/11 in New York City. The center trains search and detection dogs to work alongside the military and first responder communities, serving myriad roles. Dogs in the program are named in remembrance of individuals who lost their lives during 9/11 and the canine heroes who served following the attacks. Today, detection dogs are still recognized as the most effective tool for detecting and mitigating potential security threats.
Vicinity team members assisted the center by cleaning their indoor training mats and relocating a scent training wall. They also arranged pallets for a dog training exercise which involves tracking a scent through a rubble yard.
To kick off the start of autumn in Philadelphia, members of our green team in addition to the entire distribution department got together for some hands-on work cleaning the area.
Over the course of the day, the team successfully cleared out this massive pile of illegal dumping and gave Ellsworth Street a makeover!
Events and tours
This year, our teams welcomed professional groups, legislators, and community members for tours at our facilities across the country, where they got an inside look into how our green steam is created. Our team members also spoke at various events to discuss our clean energy future plan, renewable energy sources, and the steps we’re taking to green the communities we serve.
Jackie Bliss, Chief Customer Officer at Vicinity spoke about Philadelphia’s energy sector and sourcing renewable power at the 2022 Invest: Philadelphia Leadership Summit with Capital Analytics.
Prominent industry leaders across Philadelphia convened at the Downtown Marriot for an in-depth review of the region’s economic potential as well as accompanying challenges. Bliss specified the importance of investing in renewable infrastructure, highlighting how “The challenges are still on education and letting people know that this equipment is an option to go green both fast and cost-effectively”.
Back in May, Vicinity CEO Bill DiCroce joined a panel Massachusetts’s leaders, legislators, and Office of Massachusetts Governor Charlie Baker at State House News Service’s Net Zero Massachusetts event to discuss the outlook for critical renewable and clean energy sources.
Bill DiCroce outlined the path forward to electrify district energy systems and decarbonize building in city centers. This event was a valuable opportunity for Vicinity to hear from climate action leaders and contribute to the conversation regarding the outlook for renewable clean energy sources in Massachusetts.
In December, several members of the Maryland House of Delegates visited our Chilled Water Plant in Baltimore for a tour and presentation detailing our decarbonization plan for the city.
The decarbonization of our Baltimore system will help our customers and the state of Baltimore meet the greenhouse gas reduction goals set forth by the Climate Solutions Now Act of 2022.
In October, Brian Mueller, Chief Development Officer at Vicinity, spoke on the “Embracing the Life Science Surge” panel at Bisnow’s Philadelphia Healthcare and Life Sciences Conference.
This event covered emerging trends in addition to the future of biotechnology in Philadelphia.
In August, we welcomed guests from the City of Boston for a tour of our Kendall Facility.
Visitors explored the ins and outs of the facility and gained insight into Vicinity’s electrification plans for Boston and Cambridge from CEO Bill DiCroce, Matt O’Malley, Kevin Hagerty, and Don Silva, who led a captivating conversation surrounding Vicinity’s decarbonization objectives along with other innovative approaches to reaching Net Zero 2050.
Vicinity in the media
In 2022, Vicinity was featured in several media publications. Check out some of the great news stories and interviews that were published this year:
Over the course of the year, our team members worked tirelessly towards supplying new and innovative energy technologies, with the overarching goal of driving carbon reductions within the communities we serve.
We could not be more grateful for this dedicated team that puts in the work to create a cleaner and greener environment for generations to come. 2023 is already off to a great start for the energy community and we cannot wait to see what the future holds.
Today, transitioning to clean and renewable energy benefits our environment and helps businesses in the United States meet cost-saving goals and comply with legislative requirements.
A large share of daily carbon emissions are generated by lighting, heating, and cooling buildings, alongside the other essential elements of commercial operations. Integrating renewable energy resources into existing and future developments is rapidly becoming the standard for adopting a clean energy infrastructure.
As it stands now, the City of Philadelphia has much work to do to meet the standards set forth by the Climate Action Playbook. The playbook’s ambitious goal of carbon neutrality by 2050 will not be possible without the help of innovative energy alternatives that other U.S. cities are implementing today.
With the consequences of climate change already taking effect, the clean energy transition couldn’t be more urgent. In 2019, the City of Philadelphia reported that buildings and industry are the largest contributors to the city’s greenhouse gas emissions, accounting for almost 70% of citywide emissions. The majority of emissions come from the energy-intensive commercial, industrial, and residential sectors.
However, the effect of these carbon dioxide emissions on residents’ health has been a concern long before the City’s Playbook was put into action. A Drexel University assessment report predicts that by 2100, energy demand for buildings in Philadelphia will rise due to rising temperatures across the country. Models estimate that by 2100 new buildings will increase cooling requirements by 68.2% for small offices, 50.4% for medium offices, and 53.4% for large offices.
As carbon emissions and temperatures continue to rise, air pollution becomes a growing concern for many residents. At the time of the report, Philadelphia’s asthma prevalence rates were twice the national average among children, and the city has consistently ranked as one of the worst in the country to live in with asthma.
By embracing and investing in renewable energy, Philadelphia will reduce its reliance on fossil fuels, decrease its carbon footprint, and protect city residents and their families for future generations.
Public-private partnership is essential to Philadelphia’s future
In 2021, Philadelphia Mayor Jim Kenney signed a revised and revamped energy pledge for the city alongside the Climate Action Playbook’s commitment to achieving carbon neutrality by 2050 and transitioning the city to 100% clean energy.
Pennsylvania made progress by becoming the first major fossil fuel state to enter the Regional Greenhouse Gas Initiative (RGGI). RGGI is an initiative of 12 New England and Mid-Atlantic states to cap and reduce greenhouse gas emissions from the power sector while generating economic growth.
Stricter emissions regulations are beginning to take effect in other cities across the U.S., such as Boston’s Building Emissions Reduction and Disclosure Ordinance (BERDO 2.0). The ordinance sets requirements for large buildings to lower their energy usage to reduce the City’s carbon emissions to net zero by 2050. In the coming years, Philadelphia will likely enact a similar policy, requiring businesses to swiftly transition to adopt renewable energy technologies.
It’s clear that despite progressing towards its 2050 goal, the City of Philadelphia needs help to achieve this milestone. Commercial and residential buildings throughout the city need to take steps to become more energy efficient. The push towards a clean energy future for Philadelphians requires public-private partnership and the widespread adoption of renewable energy.
Addressing Philadelphia’s clean energy goals
As Philadelphia heads into a development boom, solidifying its leadership in education, life sciences, and medicine, businesses must take every opportunity to prioritize the environment by implementing clean energy technologies. Along with new properties, existing buildings can further green their energy supply with district energy.
The district energy system has already proven to be one of the most valuable tools at Philadelphia’s disposal when it comes to saving money, optimizing building space, and reducing the city’s carbon footprint. For years, Philadelphia businesses like The Wanamaker building, Drexel University, Wills Eye Hospital, and Jefferson Health have benefitted from green steam and reliable energy service to meet their mission-critical needs.
At Vicinity, we have made multimillion-dollar investments to improve Philly’s critical energy infrastructure, enabling our district energy system to reduce carbon emissions by nearly 300,000 tons annually. Vicinity is taking further steps to decarbonize our operations in Philadelphia by 2030 or sooner.
With the recent launch of eSteam™, the nation’s first commercial renewable thermal energy product, and through partnership opportunities with innovative landlords like IQHQ, Vicinity is well on its way to begin decarbonizing new and existing buildings across our locations.
Rather than using conventional natural gas boilers to power our systems, Vicinity is installing electric boilers, molten salt thermal battery storage, and industrial-scale heat pumps to generate eSteam™. These innovative technologies allow us to harness renewable power from alternative and clean energy sources such as wind, solar, and hydro.
Vicinity’s Philadelphia team has already begun scoping and designing our plant in Grays Ferry to make eSteam™ available for our customers as early as 2025. We are beyond excited by the overwhelmingly positive response to our plan among advocates, policymakers, and customers.
As Vicinity transitions to a fully carbon-free product, Philadelphia buildings can decrease their carbon emissions today by connecting to the district energy system and taking advantage of our green steam. In doing so, building owners will have a unique opportunity to get ahead of potential carbon regulations as we build on existing infrastructure to deliver eSteam™ to our customers, making it considerably more affordable than other onsite alternatives.
The electrification of district energy systems is a game changer for the environment, our communities, and our collective future. Imagine what a cleaner, more environmentally focused future could mean for Philadelphia and what it will do to broaden Philadelphia’s developmental future for decades to come.
Colleges and universities have been preaching sustainability for some time now, but in recent years, green initiatives have become more than just a box to check on a performative action checklist. Talking about sustainability is no longer enough, as students begin to consider the quantifiable efforts of colleges and universities when making their four-year decision.
The United States alone is responsible for 15% of global CO2 emissions. Furthermore, U.S. higher education institutions collectively emit 52,434 metric tons of carbon each year. Carbon dioxide has reportedly reached record-high levels and is the most dangerous and prevalent greenhouse gas in our atmosphere. Excessive carbon dioxide traps heat, resulting in global warming and climate change. Many risks are associated with climate change, including intense rainfall and flooding, rising sea levels, severe heat waves, and air pollution.
Making a positive impact
The current generation of college students is exceptionally carbon conscious and understands that significant changes must be made to combat the climate emergency. Nine in ten Generation Zs prioritize taking small actions daily to protect the environment, such as buying used clothing and sourcing locally grown food. These efforts can be attributed partly to how climate change has impacted their lives. 68% of this generation has been personally affected by extreme weather events, which underlines the urgency of addressing this crisis.
Young adults have begun to realize their voice and are using it to advance causes of particular importance to them. 75% of Gen Zs agree that the world has reached its tipping point regarding climate change. They have taken a broader approach to addressing climate change by considering the sustainable impacts of their more significant purchases and career paths. Students hold colleges to a higher standard by evaluating prospective schools’ sustainable business practices, carbon footprint, and community-based efforts while deciding which universities to attend.
Luckily, as environmental awareness grows among incoming college freshmen, so does sustainability action at their respective universities. Here is a rundown of four American colleges committed to shaping a greener environment:
1. Emerson College
Emerson College, located in Boston, Massachusetts, has prioritized sustainability across all aspects of its organization. In 2007, the College joined 700 other higher education institutions in signing the Carbon Agreement, through which they pledged to work towards carbon neutrality by 2030. Since then, the campus’s buildings have reduced their carbon footprint by 80%.
This reduction was made possible in part by the organization’s dedication to meeting the internationally recognized Leadership in Energy and Environmental Design standards (LEED). Four of Emerson’s five residential halls and numerous academic buildings have earned LEED certification.
Emerson’s partnership with Vicinity Energy has contributed significantly to the school’s push toward carbon neutrality. The majority of campus buildings are heated using Vicinity’s district energy system, which has tremendously increased the College’s energy efficiency.
Since 2018, Emerson has purchased 100% wind electricity, leading the school to be named the largest green power user in the New England Women’s and Men’s Athletic Conference for 2018-2019. This title sits alongside many sustainability awards and recognition the campus has received.
2. University of Pennsylvania
University of Pennsylvania is an Ivy League research institution in Philadelphia, Pennsylvania. UPenn has demonstrated its commitment to cutting carbon emissions across its organization steadily to reach its goal of 100% carbon neutrality by 2042.
UPenn’s Climate and Sustainability Action Plan outlines its mission to mitigate the impacts of climate change and explore innovative ways of expanding its use of renewable energy to reduce carbon emissions. The University uses district energy to optimize energy efficiency at its advanced MOD 7 chilled water plant.
Additionally, their new power purchase agreement has allowed them to construct solar facilities which will fuel 75% of their academic campus and health system’s electricity demand. These solar farms will support a cleaner and more efficient energy grid. They’ve also expanded recommissioning energy efforts in their labs, classrooms, and offices to stay on par with these sustainability objectives.
3. Arizona State University
Arizona State University, located in downtown Tempe, Arizona, aims to lead the world by example through its sustainability vision. With 65 LEED-certified buildings and 90 solar systems on campus, ASU has gone above and beyond in honoring this vision.
ASU has implemented a circular resource system to minimize waste and accomplish a sky-high reuse value. ASU tracks waste across its organization through a Zero Waste Annual Review and strives to improve its system’s aversion rates and re-circulation characteristics each year.
The University has additionally stayed on track with its positive climate initiatives by enhancing energy efficiency. ASU guides its conservation efforts with building-level energy monitors to identify energy waste. In 2019, 51% of the energy consumed by the University came from low-carbon sources. The organization has twice been recognized by the Association for the Advancement of Sustainability in Higher Education for its sustainable purchasing practices, demonstrating its commitment to carbon neutrality.
4. Colorado State University
Colorado State University, located in Fort Collins, Colorado, has dedicated its Student Sustainability Center to provide resources for student-led sustainability work. This center has supported many green innovation projects, such as the Patchwork Initiative, a student-run project to minimize clothing consumption and build a culture around slow fashion and upcycling. This program periodically collects lightly used seasonal clothes from students, faculty, staff, and other community members to create anonymous opportunities for students needing professional clothing or seasonal necessities.
Moreover, the University’s Coalition for Sustainable Student Organizations (CSSO) partners with registered student organizations campus-wide to encourage collective efforts that can better accomplish impactful climate action.
CSU was among the world’s first institutions to calculate its nitrogen footprint. The school’s Nitrogen Footprint Project was created entirely by students at the Sustainability Center. They gathered data from across campus to calculate the nitrogen footprint, checked and double-checked the numbers, and wrote their results in an award-winning research paper.
Progressive environmental change does not strictly happen at the industry or governmental level. These green colleges demonstrate the reach of community-based sustainability with the support of intelligent, forward-thinking administration and eco-conscious students who light a fire under them.
