On season 3, episode 1 of the Build Better podcast, Anastasia talks with Matt O’Malley, the first-ever chief sustainability officer for Vicinity Energy. He discusses Vicinity’s Clean Energy Future, Net Zero Carbon plan, and how the company is working with its customers, communities, and local government to decarbonize its operations across the country and reduce the impact of the energy sector on the earth’s atmosphere.
Philadelphia, April 24, 2023 – Vicinity Energy, a national decarbonization leader with an extensive portfolio of district energy systems across the United States, announces today that the Pennsylvania Public Utility Commission (PUC) has made its decision regarding Philadelphia Gas Works’ (PGW) efforts to increase Vicinity’s gas transportation rates. The decision requires PGW to conduct a full rate case to determine the appropriate rates and will ensure fair and legal pricing for gas transportation. This decision will allow Vicinity customers an affordable and sustainable path forward to achieve net zero emissions goals with district energy.
In February 2021, PGW provided Vicinity with proposed new rates that drastically increased Vicinity’s gas transportation costs by up to 1,000% and presented a radical change in contract terms. Read the October 2021 formal complaint filed by Vicinity with the Pennsylvania PUC, contesting the cost increase and unacceptable contract terms. PGW also falsely claimed that Vicinity was receiving a subsidized rate, which the PUC states directly contradicts PGW’s position in every prior PGW base rate proceeding.
As a long-standing community member, Vicinity remains committed to Philadelphia. Vicinity will continue delivering affordable, sustainable energy solutions to decarbonize the City, its customers, and neighborhoods where its employees and families live and work. Vicinity is leading the energy transition with its electrification plans and will continue to pursue alternatives to PGW’s gas transportation service.
“Philadelphia deserves a clean, fossil-free future,” states Bill DiCroce, president and CEO of Vicinity Energy. “We are grateful to the Pennsylvania PUC commissioners and staff for their thorough and thoughtful deliberation and are pleased with the decision. While the decision does not fully conclude our dispute with PGW, the PUC’s direction and observations regarding PGW’s deviation from its prior practices support our commitment to obtaining fair and legal pricing for the gas transportation services provided by PGW. We continue to make our customers our top priority and will continue to offer a decarbonized path forward to meet their sustainability goals.”
PGW is responsible for contributing 4.6 million tons of carbon equivalent emissions to the region’s carbon budget and has admitted that its antiquated low-pressure distribution system leaks 1 million tons of carbon dioxide annually. PGW conducted a diversification study launched by Philadelphia’s Office of Sustainability, and the City has publicly stated that it can only reach its decarbonization targets by reducing the carbon emissions from thermal energy. As a fossil fuel-supplying entity, PGW’s future is uncertain.
In Philadelphia, Vicinity’s district energy steam system avoids over 300,000 tons of CO2 emissions annually compared to individual onsite gas boilers. Vicinity’s combined heat and power (CHP) technology, also known as cogeneration, at its Grays Ferry facility in South Philadelphia is 20% more efficient than even the most advanced combined-cycle gas turbine power plants. Vicinity’s steam is a low-carbon, clean option for customers to lower their carbon footprint today. Vicinity’s path to decarbonizing its operations using renewable energy sources to power electric boilers, industrial-scale heat pumps, and thermal storage is underway. In 2022, Vicinity launched its renewable carbon-free eSteamTMproduct to meet the needs of customers and cities to achieve sustainability goals.
About Vicinity Energy
Vicinity Energy is a clean energy company that owns and operates an extensive portfolio of district energy systems across the United States. Vicinity produces and distributes reliable, clean steam, hot water, and chilled water to over 250 million square feet of building space nationwide. Vicinity continuously invests in its infrastructure and the latest technologies to accelerate the decarbonization of commercial and institutional buildings in city centers. Vicinity is committed to achieving net zero carbon across its portfolio by 2050. To learn more, visit https://www.vicinityenergy.us or follow us on LinkedIn, Twitter, Instagram, or Facebook.
Media Contact
media@vicinityenergy.us
Boston, MA, April 5, 2023 – Vicinity Energy, a national decarbonization leader with an extensive portfolio of district energy systems across the United States, announced its partnership with Augsburg, Germany-based MAN Energy Solutions to collaborate in the development of low-temperature source heat pump systems for steam generation. Vicinity plans to install an industrial-scale heat pump complex at its Kendall Station facility by 2026.
“Vicinity’s first heat pump complex in Cambridge, MA, which draws from proven examples in Europe, will be the largest in the U.S. It will be powered by renewable electricity to safely and efficiently harvest energy from the Charles River, returning it at a lower temperature,” says Bill DiCroce, president and CEO of Vicinity Energy. “We have made a lot of progress harvesting the energy of the sun and wind, MAN’s cutting-edge technology will now enable Vicinity to renewably harvest energy at scale from rivers and oceans, which are presently warming from the effects of climate change. This is a big deal in district energy’s efforts to decarbonize cities, and Vicinity is very proud to lead the way with MAN in this exciting venture.”
“The heating sector accounts for 30-40 percent of global CO2 emissions. The global energy transition cannot succeed without decarbonizing heat,” says Uwe Lauber, CEO and CSO of MAN Energy Solutions. “At the same time, district heating systems are one of the most efficient and sustainable ways to provide heat to commercial buildings and industrial facilities. Hence the task is to reduce district heating systems’ dependence on fossil fuel-fired heat sources. Our heat pump technology can do that, with many examples in the European field to prove it. I am very happy to collaborate with Vicinity Energy on the application of our technology to support Vicinity’s impressive district energy system.”
This announcement represents another significant step in Vicinity’s plans to electrify its operations to achieve net zero. In 2022, the company kicked off its electrification strategy by deconstructing a steam turbine at its Kendall Facility in Cambridge, Massachusetts. In its place, Vicinity is installing an electric boiler that will begin supplying carbon-free eSteam™ to customers in 2024.
The company’s other 11 locations in major cities nationwide will undergo similar electrification processes in the coming years to achieve its goal of net zero by 2050.
About MAN Energy
MAN Energy Solutions enables its customers to achieve sustainable value creation in the transition toward a carbon neutral future. Addressing tomorrow’s challenges within the marine, energy, and industrial sectors, we improve efficiency and performance at a systemic level. Leading the way in advanced engineering for more than 250 years, we provide a unique portfolio of technologies. Headquartered in Germany, MAN Energy Solutions employs some 14,000 people at over 120 sites globally. Our after-sales brand, MAN PrimeServ, offers a vast network of service centers to our customers all over the world.
About Vicinity Energy
Vicinity Energy is a clean energy company that owns and operates an extensive portfolio of district energy systems across the United States. Vicinity produces and distributes reliable, clean steam, hot water, and chilled water to over 250 million square feet of building space nationwide. Vicinity continuously invests in its infrastructure and the latest technologies to accelerate the decarbonization of commercial and institutional buildings in city centers. Vicinity is committed to achieving net zero carbon across its portfolio by 2050. To learn more, visit https://www.vicinityenergy.us or follow us on LinkedIn, Twitter, Instagram, or Facebook.
Media Contacts
MAN Energy
Jan Hoppe
+49 821 322 3126
jan.hoppe@man-es.com
Vicinity Energy
media@vicinityenergy.us
Vicinity Energy is the largest provider of district energy solutions in the U.S. We contribute to a cleaner environment by providing highly reliable, sustainable energy solutions.
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