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What Vicinity Energy’s eSteam™ means for Philadelphia

Posted on January 26, 2023July 23, 2024 by Pamela Clark

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.

Four green colleges putting sustainability principles into practice

Posted on December 8, 2022June 26, 2024 by Bella Pace

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.

Green leasing: a collaborative tool for a sustainable built environment

Posted on November 30, 2022April 2, 2024 by Bella Pace

Today, employees choose their next employer based on sustainability: 32% of employees agreed they would only work for a company that prioritizes sustainability. Of that total, 42% of millennials and 30% of Gen-X agreed.

To attract these climate-minded employees, more and more companies are setting sustainability goals for their operations, both internally and externally. Deloitte’s 2022 CxO Sustainability Report found that 82% of executives plan to achieve net zero carbon emissions by 2030.

The location and daily operations of office buildings emit a large amount of harmful greenhouse gas emissions. Organizations choose their office spaces with sustainability in mind to combat these negative environmental effects. One way to do so is to enact a green lease.

Green leases include clauses specifically related to sustainability, such as requirements for smart, energy-efficient lighting, heating and cooling, or using renewable energy sources to reduce emissions.

The need to drive energy efficiencies is direr: the latest United Nations climate conference, COP27, called for sustained investments in energy efficiency worldwide to reduce energy demand, avoid CO2 emissions and dampen energy cost volatility.

How green leasing works

The explosion of green leasing around the world is driven by the large amount of emissions that the built environment releases into the atmosphere.

Green leasing is a collaborative way to meet both the demands of sustainably minded tenants and the financial needs of building owners. Although commercial green leases have taken many forms, they are all agreements between building owners and tenants that commit to reducing energy waste, improving system efficiency, and boosting transparency between the two parties.

Given that operational building emissions (i.e., daily energy use) account for more than a quarter — yes, a quarter! — of total global emissions, green leasing is a viable tool for tenants of all industries to impact the climate positively.

While owners control the energy infrastructure of a building, tenants determine the overall energy usage. Thus, a poorly designed building with inefficient heating and cooling can dish out inordinate amounts of carbon emissions.

When evaluating a building space, it’s recommended that tenant/broker teams look for a few items from the building owner:

Energy use details, carbon reduction goals, social impact programs, and other efficiency ratings like WELL or LEED.
Whole-building performance metrics, energy use intensity, and whole-building capital improvement plans during the evaluation process.

WELL and LEED certifications have become critical markers for building occupants’ well-being and healthy, efficient, carbon, and cost-saving green buildings.

Additionally, many commercial real estate, laboratory, and healthcare spaces are turning to district energy to provide greener and more efficient energy to power their critical operations. District energy systems typically reduce primary energy demand in heating and cooling by 50% and can achieve operational efficiency of up to 90%.

How does district energy accomplish this? By centralizing and aggregating the production of heat, hot and chilled water to multiple buildings, district energy cuts down on the amount of fuel that would otherwise be required by individual buildings using onsite generation and the resulting carbon emissions.

The potential impact of green leases

Because green leases require building owners to take actionable steps to improve their operations, these agreements can lower both utility costs and energy use.

Through an analysis of current energy efficiency measures facilitated by the signing of green leases, it is estimated that green leases have the potential to reduce energy consumption in office buildings by 11 to 22 percent.

This reduction in energy consumption has the potential to provide the U.S. commercial office market with $1.7 billion to $3.3 billion in annual cost savings.

With the built environment currently generating nearly 50% of annual global CO2 emissions, these efficiency measures can make a big difference in the fight against climate change in cities worldwide.

Green lease growth in the U.S. and beyond

Although relatively new to the United States, green leases are taking off globally. A whopping 34% of all building occupiers have signed qualifying green lease clauses, according to JLL Global Research’s 2021 report, Decarbonizing the Built Environment.

In Europe, France is leading the charge: green leases have become commonplace as part of a mandatory reduction in national emissions. French landlords are now required to include specific benchmarks around the conservation of energy consumption in commercial office leases.

It’s no surprise that market demand for green leasing is growing in the United States. Roughly five billion square feet of building space is now covered by green leases in the U.S., a number that’s expected to grow at a fast clip, according to the Institute for Market Transformation.

Aside from financial and efficiency needs in the U.S., cities like Philadelphia, Boston, and Los Angeles are enforcing ambitious decarbonization goals aimed at reducing building emissions.

In Boston, for example, the Building Emissions Reduction and Disclosure Ordinance (BERDO 2.0) has set requirements for large buildings to reduce their energy and water use, stretch codes mandated, so buildings will achieve higher energy savings, and increase investments in green and renewable energy technologies.

Commercial building owners need an energy partner they can trust to meet the requirements of carbon reduction acts like BERDO 2.0. As the owner and operator of the district energy systems in twelve states in the U.S., Vicinity is uniquely poised to help our customers decarbonize their building operations quickly and affordably.

Vicinity is the first in the U.S. to electrify its operations and offer renewable thermal energy by installing electric boilers, industrial-scale heat pumps, and thermal storage at our central facilities starting in Boston and Cambridge, with other locations to follow.

A way forward with green leasing

Green leasing allows all tenants to advocate for more efficient energy systems and sustainable buildings that mutually benefit them, their landlords, and the global community.

At Vicinity, we support these green lease leaders and believe that cutting-edge solutions like carbon-free eSteam™ are powerful tools to drive rapid decarbonization efforts in cities across the country.

What’s in store for the price of natural gas? Market update: winter 2022-2023

Posted on October 24, 2022April 2, 2024 by Rohan Sinha

Since June 2020, when COVID-19 shut down much of the U.S. economy, natural gas prices have been up a staggering 525%. Put differently, today’s gas prices have skyrocketed to levels unseen since 2008—and several factors could continue to drive prices even higher.

With the ongoing war in the Ukraine and uncertainty in Europe, an increase in liquefied natural gas (LNG) exports, and warmer-than-average summer temperatures in much of the U.S., natural gas inventories are below historical averages. This leaves the market with less of a buffer going into peak winter heating season demand, providing potential upside price risk. While we have recently seen some modest dips in gas prices, Vicinity is still seeing record highs in many of the cities we serve.

By the numbers: what we know and what we could expect

According to the U.S. Energy Information Administration, the Henry Hub natural gas spot price averaged $8.80 per million British thermal units (MMBtu) in August, up from $7.28/MMBtu in July. September’s Henry Hub spot price settlement was $7.99/MMBtu versus $5.024/MMBtu seen during the same period last year.

The October NYMEX Henry Hub contract settled at $6.868/MMBtu, and the expectation is that the Henry Hub price will average about $5.76/MMBtu in November through December of 2022 and then fall to an average of about $5.18/MMBtu in 2023 as U.S. natural gas production rises. So even though there seem to be some price increases in our future, the hope is that the new year could start to bring some stabilization. After record-setting demand for power generation this past summer, seasonal demand is set to reduce in the next few months.

How is Vicinity helping?

Because of the uncertain environment, Vicinity is taking action to cost-effectively procure fuel and reduce price volatility to limit our customers’ exposure to price spikes during the prime heating season this winter.

In addition to continuously monitoring the markets and leveraging our considerable backup distillate fuel supplies, we’ll be pre-purchasing fuel to help ensure efficiency and reliability. Our market experts believe this approach will serve our customers’ best interests and achieve more bill stability and budget visibility.

The global movement away from fossil fuels

Without a doubt, there are challenges ahead for all building owners that rely on natural gas – and not just in terms of cost. As reliance on fossil fuels continues to exacerbate climate-related impacts and global leaders implement legislation to aggressively reduce carbon emissions, it’s clear that natural gas is not a progressive or healthy solution for our collective future.

Of course, some critics raise concerns about renewable energy’s cost and affordability. Still, the fact remains that our current energy crisis has affected everyone financially and reinforces the obvious—that fossil fuels are the elephant in the room.

However, despite the global energy shortage, Vicinity is well equipped to navigate these challenging times—unlike buildings with boilers that rely solely on natural gas. With multiple power supplies, backup generation, and several water and fuel sources, district energy systems are reliable, robust, and sustainable and provide safeguards to ensure 24/7 energy delivery.

Like Vicinity, many leading district energy systems (including those in Vancouver and Copenhagen) are implementing innovative strategies, like renewable fuels, heat pumps, and electric boilers, to further reduce their use and reliance on fossil fuels.

Vicinity’s Chief Customer Officer Jackie Bliss said it best in her recent article with Commonwealth Magazine:

“There will always be reasons not to act swiftly in our transition to a greener, cleaner economy, but now is not the time to lose resolve. Rather, the recent fears about energy security mean we should immediately triple down on our investment in renewables. That means more offshore wind and solar if it accomplishes our shared goals of improved energy security while also combatting climate change, an existential threat to our planet and future generations.”

A closer look: the advantages of district energy

While the global energy shortage will impact everyone, there are substantial benefits to being part of a district energy system. Here are a few ways Vicinity’s status as a district energy provider will help serve our customers through this global challenge:

We can negotiate fixed prices and better rates due to our superior bargaining power as a participant in energy markets, compared to a single building purchasing gas for its boilers.
Vicinity monitors customer usage carefully to ensure enough supply to keep all our customers functioning at their normal levels, even during an extreme weather event or a shortage. This is a huge advantage over individual boilers, where building owners must try to anticipate their load and make sure to order enough on an individual basis.
Most Vicinity district systems are fuel-agnostic, meaning our generators (chillers, boilers, etc.) can utilize various fuels, including renewable and alternative fuels, instead of being at the mercy of gas companies.
Vicinity uses a diverse fuel mix, including renewable biogenic fuel, so we’re not reliant on natural gas.
Furthermore, with the electric grid’s growing adoption of more renewable sources, we’re working on electrifying our district systems – a move that will drastically reduce our use of natural gas and conventional fossil fuel.

Looking ahead

There’s no question that we have a substantial problem on our hands. But the truth is, the solution isn’t only obvious—it’s already here. With so much uncertainty in tomorrow’s landscape, we need to recognize that what once seemed to be the answer is simply failing to keep up with today’s realities.

Isn’t it time we pivot away from fossil fuels and create a greener, more sustainable future?

The benefits of renewable energy will far outweigh the consequences of fueling the current solution. And district energy is just one example of how we can benefit from existing infrastructure (which reduces cost and saves space) to create a lower carbon footprint and a more reliable and affordable way to power us into the future.

The responsibility is now on us, and we have the forward-thinking means to start achieving energy security and a cleaner tomorrow right now—before we pay the price.

A pivotal chance for Philadelphia’s climate future

Posted on September 22, 2022March 28, 2024 by Jeannie Morris

One year ago, the Schuylkill River had just normalized after rising to catastrophic levels following Hurricane Ida. The ensuing floods that swallowed up the Vine Street Expressway, ruined homes, and businesses, and took multiple lives, provided a potent reminder that Philadelphia, nestled between two rivers, is uniquely susceptible to the impacts of extreme weather resulting from climate change.

If nothing else, a look back at the historic flooding should serve as a reminder of the need to advance prescriptive policies at the local level that curtail the negative effects of climate change, reduce greenhouse gas emissions, and protect Philadelphia’s health and infrastructure. The recent Supreme Court decision undermining the EPA’s ability to regulate emissions on a national level amplifies the need for cities like Philadelphia to take charge of their climate futures.

Thankfully, Philadelphia has a policy road map in place. In 2021, Mayor Jim Kenney and City Council made a “net zero” pledge to achieve carbon neutrality by 2050. It’s an ambitious goal that’s drawn support in other cities such as Boston, New York, and San Francisco. Coinciding with the pledge, the city also released a draft of its Climate Action Playbook — a blueprint of data-driven recommendations and expertise to suggest ways to reduce climate change’s impacts through an equitable and inclusive lens.

During Climate Week NYC 2022 and Global Clean Energy Action Forum in Pittsburgh, we want to spotlight Philadelphia and cities around the world that are at an inflection point for environmental progress. While municipalities need to look forward to innovations and policies, there are also existing programs and technologies that could be better harnessed by individuals and embraced by local governments to make a significant difference in achieving our climate goals.

For example, on a small scale, look at how electric cargo bikes are increasingly diminishing the environmental impact of urban deliveries. The British advocacy group Possible put out a study last year that found electric cargo bikes reduced emissions by 90 percent compared to diesel vans and by one-third compared to electric vans. Plus, the bikes were more efficient from a delivery standpoint, making more than 50 percent more deliveries than vans.

Although car emissions get a lot of publicity, building emissions are a bigger culprit. According to Climate Action Playbook, the buildings of Philadelphia emit a whopping 75 percent of the city’s total carbon footprint—triple the total emissions from all modes of transportation.

What cargo bikes are doing for deliveries, Vicinity is doing for building emissions. In April, we announced the launch of eSteam™. It’s a technology specifically designed to rapidly decarbonize this critical area of climate change. We will offer renewable thermal energy by installing electric boilers instead of the traditional gas-burning variety and industrial-scale heat pumps and thermal storage at our central facilities to provide sustainable and reliable service. Although eSteam™ will first be available in Boston and Cambridge, Philly will soon follow.

Investing in renewable energy sources will serve to increase energy stability and reliability in the face of recent climate and fossil fuel-related emergencies. At this week’s climate event in NYC, leaders noted that renewables would ensure resilience and security beyond driving economic growth.

We are committed to using innovative technology to upgrade how we create steam to serve downtown Philadelphia. We’ve already begun scoping and designing our systems for decarbonization. We are beyond excited with the overwhelmingly positive response to our plan among advocates, policymakers, and customers.

Simply put, Philadelphia is on track to become the largest decarbonized district energy system in the U.S.

At Vicinity Energy, we constantly look at what leaders are doing worldwide for inspiration and guidance on combatting climate change. Similar thermal energy systems surpass their climate goals in places like Copenhagen, and we need to do more in Philadelphia. Vicinity is innovating, implementing, and solving decarbonization challenges, “Getting It Done” with district energy.

As Climate Week NYC hails “Getting it Done,” Vicinity Energy is solving renewable energy challenges

Posted on September 21, 2022April 4, 2024 by Bella Pace

With the most prominent global climate event kicking off, Climate Week NYC 2022, the environmental community has genuine excitement and optimism. The optimism is spurred by the passage of the Inflation Reduction Act (IRA), recently signed into law by President Biden. Its climate change and energy innovation elements represent Congress’s most significant climate investment ever made. In Massachusetts, this is coupled with Governor Charlie Baker signing the “Act Driving Clean Energy and Offshore Wind” bill into law – which outlines the roadmap for how Massachusetts will meet its ambitious climate targets and clean energy goals for 2050 – potentially further solidifying New England’s status as a national leader.

While the IRA is projected to reduce the country’s carbon emissions by roughly 40% by 2030, Massachusetts businesses, government, and the climate communities continue to grapple with how to reach net zero emissions. It will be heartening to see Climate Week’s organizers bring together the world’s most influential leaders in climate action to explore the impact of buildings and infrastructure on climate. Still, event stakeholders need to capitalize on recent momentum while staying focused on what will have a tangible, real-world impact.

Today, buildings represent nearly 40% of greenhouse gas emissions and a third of global energy demand, so it’s critical that net zero buildings be powered by renewable energy. Given the outsized role that commercial buildings play in emitting carbon in major cities, carbon-free renewable energy technology can provide a one-stop- shop for institutions considering the right approach with enforceable emissions performance standards. As the first company of its kind in the U.S. to electrify its operations, we are committed to offering renewable thermal energy by installing electric boilers, industrial-scale heat pumps, and thermal storage at our central facilities starting in Boston and Cambridge, with additional locations to follow. Not only will this technology reduce a building’s carbon emissions, but customers will also be able to achieve their ESG goals while complying with regulations.

With district energy, thermal energy is produced at a central facility and distributed to individual buildings via underground piping, eliminating the safety risks associated with onsite generation. District energy systems are agnostic to fuel type. This fuel flexibility enables the use of lower-carbon, local sources of energy, increasing the resiliency and security of the network and the health of our communities. Decarbonization upgrades to Vicinity’s centralized facilities immediately benefit the entire network. As more new renewable technologies and sources come online, district energy systems will easily integrate into existing distribution systems.

In 2024, Vicinity’s first electric asset will enter service. At that time, the company will procure electricity from renewable, carbon-free energy sources such as wind, solar, and hydro to generate our steam product. Unlike onsite generation – which intrinsically involves onsite combustion as part of the energy generation process – district energy is a much safer alternative.

President Biden’s pledge to reduce U.S. emissions from 2005 levels – by at least in half within the next several years – and achieve net-zero emissions by 2050 is ambitious. One key to understanding how Greater Boston institutions will reach these goals can be found in the upgraded and innovative use of district energy. As Climate Week NYC 2022 celebrates recent progress and debates the opportunity to transform traditionally hard-to-abate sectors, it will be necessary for thought leaders to recognize the radical shift that has recently occurred within our industry. Commercial building owners in Boston already see the difference.

We look forward to demonstrating this technology’s role in more significant decarbonization debates as we expand into additional markets in the near future.

District energy is charging Philly’s ever-growing life science market

Posted on August 25, 2022June 13, 2024 by Bella Pace

Life sciences are currently booming in the United States. An outpouring of new products and technology coupled with capital inflows from public and private investors are transforming the industry, allowing new implementations to take shape. As talent within the field continues to rise, new treatments for diseases such as cancer, HIV, and cystic fibrosis are finally within reach. There has also been a growing emphasis on the standard of care patients receive, demonstrated through the quality and performance management requirements gaining particular attention in life science professions. With this surge in technology, funding, talent, and performance, the demand for lab space across significant markets is stronger than ever.

A real estate shift is occurring

The COVID-19 pandemic ignited a shift in how traditional office spaces are used. Lockdowns proved that employees did not have to be in the office to complete projects and tasks, and productivity increased with remote tools such as Zoom and Microsoft Teams for collaboration. This new paradigm has diminished the need for office space in numerous industries.

The opposite is true for careers in medicine and biotechnology: the pandemic verified the crucial need for health care workers and researchers to have hands-on lab space for their life-saving findings and operations. The outcome of these two factors was a real estate scramble.

Because of this transition, city landlords are desperately converting their vacant office spaces into laboratories, making way for the world of life sciences to thrive.

How is this affecting Philadelphia?

In 2017, researchers at the University of Pennsylvania and Children’s Hospital of Philadelphia boosted Philly’s status in the medical industry by developing an FDA-approved treatment for a rare form of retinal blindness. That same year, the University of Pennsylvania’s CAR T cell therapy was approved by the FDA to treat a specific type of cancer found in children and young adults. This treatment has now won its third FDA approval in 2022.

Philadelphia has since maintained its glowing reputation as a hub for the life science market, as seen by the industry’s employment rate, which has grown by a staggering 116% since 2001. Medical and biotech organizations flock to Philadelphia not only for their growing pool of talent but also for their valuable real estate. Compared with other top life science markets such as Baltimore, San Francisco, and New York City, Philadelphia’s market displays significant cost advantages in building operations and maintenance.

These cost advantages can be attributed to Philly’s thriving district energy network, a crucial motivator for labs, hospitals, and other research and development establishments to expand into this region.

Meeting rigid requirements for laboratories

Laboratory operations require a lot more energy than those of a typical office building. In the U.S., labs can use anywhere from 30 to 100 kilowatt-hours of electricity and 75,000 to 800,000 Btu of natural gas per square foot every year. In a standard laboratory, most power is sourced for cooling, lighting, and space heating, with lighting and space heating accounting for approximately 74% of total energy use.

The ceilings of laboratories must also be appropriate for ductwork and equipment. There must be sufficient airflow for the safety of technicians as well as viable interior wall and ceiling space to meet upgraded mechanical and utility conditions. More importantly, laboratories require a large volume of high-quality, reliable thermal energy to support their fundamental operations. Specific ventilation, space temperature, and humidity measures are necessary to sterilize laboratory tools and equipment.

An error in any of these requirements can result in millions of dollars lost in research and development. This could cause a significant financial burden for biotech and pharmaceutical organizations as well as catastrophic setbacks in the advancement of medical discoveries.

Establishing lab space in Philly

As progressive climate action goals continue to develop throughout the U.S., low-carbon sustainable energy will soon become a non-negotiable requirement in cities like Philadelphia. Additionally, individual biotech companies typically have sustainability initiatives, making green energy increasingly vital to operations.

With the speed at which life science firms are growing and expanding, ground-up construction is not an option. Existing buildings must adapt to these requirements, which are becoming increasingly rigid, to meet rapidly approaching sustainability goals. District energy builds upon existing infrastructure, so buildings do not need to make expensive renovations to decarbonize their operations. This energy alternative has been proven to be both environmentally green and cost-effective.

Vicinity’s Philly district energy system

Vicinity Energy offers affordable green steam to Philadelphia’s renowned universities, medical research facilities, hospitals, and other commercial institutions. This steam system is one of the largest district energy systems in the U.S., covering over 100 million square feet of the city’s grounds.

Vicinity has already made multimillion-dollar investments to improve Philly’s critical energy infrastructure, enabling this district energy network to reduce carbon emissions by nearly 300,000 tons annually.

District energy is considerably more affordable than other onsite alternatives, such as building in hefty electric boilers, which are expensive to install and maintain, take up excess space, and detract from valuable real estate. Vicinity’s interconnected steam facilities provide built-in redundancy, backup generation, and multiple water and fuel sources to ensure these crucial life science organizations can stay up and running 24/7.

The result

As Philly’s district energy system expands, hospitals and laboratories can devote more time, money, and physical space to their life-saving operations. District energy users also enjoy peace of mind knowing that their building supports renewable energy distribution as Vicinity strives towards a cleaner and greener future for Philadelphia.

The $369 billion gamechanger for clean energy

Posted on August 8, 2022July 23, 2024 by Jeannie Morris

In the same week as a record-breaking Mega Millions jackpot, the US Senate reached a groundbreaking $369 billion climate agreement, days after it appeared a deal was all but dead, The Inflation Reduction Act, which is expected to pass the House later this week, is a milestone victory for the green sector, making a record-shattering investment into emissions-free energy production. It promises to cut carbon emissions by 40 percent nationwide and massively overhaul how Americans get their electricity, heating, and cooling. Although it’s not the multi-trillion-dollar climate plan that President Joe Biden originally envisioned, $369 billion on a bad day isn’t bad.

As anticipated, if passed by both chambers, the Inflation Reduction Act will, as the name suggests, reduce inflation and produce tangible gains for a US economy in desperate need of a boost. Critically, it will also reset the climate change agenda and help to make decarbonization a household issue for a generation of Americans.

You can call it watered down if you’d like. Still, the Inflation Reduction Act is a major political win for both pragmatism and popular opinion, as David Wallace-Wells wrote in the New York Times: “This bill is a compromise, obviously and outwardly. It is also a historic achievement for the climate left and a tribute to its moral fervor and political realism.”

For companies like Vicinity Energy, these historic investments in renewable energy are in lockstep with the decarbonization investments we are already making in the cities served by our district energy systems. Vicinity’s agile, fuel-agnostic systems can easily switch to carbon-free energy sources and lower carbon emissions by converting renewable power into steam. Customers on the system receive a thermal energy product without emitting CO2, making district energy a game changer for the climate and our communities.

So, where is the $369 billion going? 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. The deal struck by Congress also provides substantial incentives to low- and middle-income households to transition to electric heat, fueled by renewables, in their homes. Overall, the legislation stands to rapidly speed up the country’s transition away from fossil fuels and bring the United States closer to the emissions targets set in the Paris Climate Accord.

Among the policies and investments being made with the single-largest investment into the green sector in history are:

$4.28 billion – dedicated to creating a High-Efficiency Electric Home Rebate Program that will provide $8,000 for homeowners to install heat pumps, among other rebates.
$60 billion – providing incentives to ramp up domestic manufacturing for clean energy products like solar panels, wind turbines, and batteries.
$60 billion – targeting a series of environmental justice programs, such as community block grants for neighborhoods that have been disproportionately impacted by the public health harms of pollution and climate change.
New federal penalties for companies that produce methane leakage
An end to the Trump-era moratorium on offshore wind in the Gulf

You can read the full text of the bill here.

Reimagining the energy industry: an inflection point for decarbonization efforts

Posted on August 4, 2022April 2, 2024 by Matt O'Malley

As a coastal city, Boston is particularly vulnerable to the negative and real impact of climate change. Over the next several decades, according to a new report from the University of Massachusetts Boston, this region will almost certainly see hotter days, increasingly intense storms, and rising sea levels. Current guidance coming out of local and state government – such as Boston’s updated Building Emissions Reduction and Disclosure Ordinance (BERDO 2.0), which sets requirements for large buildings to reduce their energy and water use data, stretch codes which are mandated so buildings will achieve higher energy savings, and growing investments in green and renewable energy technologies – are prescriptive policies that will help lower greenhouse gas emissions and hopefully slow climate change’s tide.

Still, with the recent Supreme Court decision curtailing the EPA’s authority to regulate greenhouse gas emissions, achieving a 50 percent drop in emissions by 2030 or a net zero future with the remaining tools from a federal regulation standpoint will be increasingly challenging. This ruling affirms the local business community’s role in achieving net zero, particularly in Greater Boston. In a way, it is an opportunity for creative solutions to drive what needs to be done.

Coming from the government world, I am excited to be part of the solution. And with 2022 now at its midpoint – an inflection point regarding how environmental progress will be achieved locally and nationally, I thought I would share an update on the state of play from our perspective.

Recently there’s been momentum in the environmental world regarding the usage of old technology with an innovative, fresh lens. For instance, cargo bikes are an efficient and environmentally friendly method for making last-mile deliveries. A study last year by Possible, a British advocacy group, found that electric cargo bikes cut carbon emissions by 90% compared with traditional diesel vans and by a third compared with electric vans, according to the report. Air pollution was also significantly reduced. The bikes also delivered approximately 60% faster than vans in urban centers, had a higher average speed, and dropped off ten items an hour, compared with six items for vans. Meanwhile, unlike plastic, glass bottles are a fully sustainable and recyclable resource that also provides fantastic environmental benefits like a longer life cycle and lower carbon footprint. It is also made of natural raw materials and has an enhanced ability to preserve food.

This is precisely what we are doing at Vicinity. In April, we announced the launch of eSteam™, an innovation designed to rapidly decarbonize the highest source of emissions in major cities and commercial buildings. Our company is the first in the U.S. to electrify our operations, offering renewable thermal energy by installing electric boilers, industrial-scale heat pumps, and thermal storage at our central facilities starting in Boston and Cambridge, with other locations to follow.

In cities like Boston and Cambridge, buildings account for nearly 70% of all greenhouse gas emissions. Think about how changing the fuel source can have a profound impact, whether on coal, oil, natural gas, or combined heat and power (CHP) plants. Now is the time to transition from natural gas to renewable, clean energy. That is precisely what this new electrified system will be able to accomplish: modernizing how district energy is approached.

If we are serious about decarbonization, we must be bold and reimagine our industry. That’s what is being done at Vicinity Energy, and we are looking to best practices from similar steam loops in other parts of the world. Copenhagen, Malmö, and Drammen use district energy to meet and surpass their respective climate goals. Our goal is to be the first in the U.S. to lead in this space. Vicinity is uniquely poised to serve as a national leader in building decarbonization. The time for action is now. Our customers want it, our cities ask for it, and our planet demands it.

We are proud of what we are accomplishing.

eSteam™: a new, greener solution to combat carbon emissions

Posted on July 12, 2022July 23, 2024 by Bella Pace

Many people are aware that pollution is a harmful downside to urbanization. What you may not know, however, is that 90% of our world’s population breathes polluted air every day, and 7 million people die from exposure to this contaminated air every year. This is a jarring statistic, and it sheds light on how carbon emissions serve as a silent killer in our world as the air we breathe can quickly and quietly turn lethal.

What is causing this?

Various factors contribute to pollution and climate change around the world. So, what are the biggest culprits, and how do they produce these carbon emissions? Building operations are responsible for 27% of global CO2 emissions each year, with another 20% coming from the construction and building materials required to create and maintain a building. These daily operational emissions generate lighting, heating, and cooling for a building, all essential elements of residential and commercial life. Additionally, many of these carbon emissions from buildings result from desperation to meet growing energy demands in conjunction with a lack of available clean energy options, as most of these establishments are several decades old.

What can be done?

One way to combat the increasing levels of carbon emissions within buildings is to integrate renewable energy systems into existing architecture through renovation and retrofits. It is equally important to ensure that new buildings’ systems are centered around using clean energy. Commonly known renewable energy sources include wind, solar, and hydroelectricity, and while these have proven to be effective in numerous circumstances, another, more cost-effective solution exists. eSteam™ generates power without emitting any CO2 and is the first-ever renewable thermal energy product in the United States!

Customers benefit from carbon-free eSteam™ generated with renewable electricity.

How eSteam™ works

Instead of fossil fuels, eSteam™, a new offering from Vicinity Energy, is fueled by electricity in a process known as electrification. Electric boilers, thermal storage, and industrial-scale heat pumps are installed at central facilities to generate steam. These devices employ renewable power from other carbon-neutral energy sources such as wind, solar, and hydro to produce energy used to power buildings in cities across the country.

Rather than start from scratch with sustainable infrastructure, eSteam™ leverages and builds upon existing infrastructure. This means that older buildings do not need significant investments to decarbonize their thermal energy load. eSteam™ uses Vicinity’s existing network of steam pipes, electric substations, and transmission lines to rapidly reduce carbon emissions. This electrification method is the most cost-effective and reliable way to accelerate the decarbonization of buildings and communities.

Benefits of eSteam™

With zero carbon emissions, users can meet their sustainability goals while simultaneously avoiding looming carbon taxes. Many cities throughout the U.S. have implemented or are considering implementing laws to lower buildings’ greenhouse gas emissions. These policies typically impose hefty fines for non-compliance. Because eSteam™ is carbon-free, users can have peace of mind knowing that their building will be greener while avoiding carbon fees and penalties.

eSteam™ offers total flexibility. Vicinity gives purchasers of eSteam™ the option to choose whichever renewable energy source they prefer to generate energy for their building. They can also select how much eSteam™ they wish to purchase annually. With these features, eSteam™ is customizable to various budgets and sustainability objectives.

eSteam™ is delivered through Vicinity’s district energy system, making it considerably more affordable than other onsite alternatives such as building in electric boilers. This access to wholesale power gives district energy an economic advantage over onsite equipment. It distinguishes eSteam™ as the most valuable and cost-effective method of improving a building’s carbon footprint.

Choosing eSteam™ to decarbonize your building eliminates the need to invest in costly capital projects. Therefore, you can avoid the financial burden of expensive renovations. This is because eSteam™ decarbonizes buildings by connecting to Vicinity’s district energy network, which is known for its maximum reliability and resiliency in a climate uncertain future.

eSteam™ users can gain potential points for LEED® and ENERGY STAR® certifications. These certifications are a great way to demonstrate your building’s commitment to sustainability.

Act now for the future

eSteam™ will be available nationwide shortly, and you can commit to making this change today. Making the switch to eSteam™ for a low-carbon future will not only aid in saving our planet from the adverse effects of carbon emissions, but it will also help decarbonize our communities so that fewer people find themselves sick or dying from breathing polluted air.