Beneath the streets of hundreds of North America’s oldest cities lies a network of pipes delivering steam heat to office buildings and hospitals. These steam loops could be a clean energy solution.
The Morning Edition of NPR Radio discusses Vicinity Energy’s district systems as a valuable tool to decarbonize cities at scale. Susan Phillips of NPR member station WHYY in Philadelphia reports these steam loop systems could be a climate change solution.
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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.
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
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.
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.
It’s no secret that every institution plays a critical role in the fight against climate change. And while integrating renewable energy sources such as wind, solar, and hydro have become go-to options for many institutions, there is another, often overlooked solution: combined heat and power (CHP).
CHP, also referred to as cogeneration, has been quietly providing highly efficient electricity and process heat to vital industries, employers, urban centers, and campuses for decades, as noted by the U.S. Office of Energy Efficiency and Renewable Energy. Cogeneration is a proven, cost-effective tool for reducing emissions and furthering sustainability goals.
So, what does CHP entail, and how does it compare to onsite methods of heating and powering buildings?
CHP is an efficient process that combines the production of thermal energy (used for both heating and cooling) and electricity into one process. CHP systems can be configured differently, but they usually consist of a few key components: a heat engine, generator, heat recovery, and electrical interconnection, which are configured into an integrated whole.
Key facts about CHP systems:
CHP systems can be located at an individual facility, building, or campus. They can also be combined with district energy or utility resource.
CHP is typically employed where there is a need for electricity and thermal energy.
All CHP systems involve recovering otherwise-wasted thermal energy to produce useful thermal energy or electricity.
As a result, CHP systems require less fuel to produce the same energy output as conventional systems, emitting fewer greenhouse gases and air pollutants.
Although CHP is used in over 4,400 facilities across the U.S., many operations are still powered with conventional separate heat and power (SHP) systems. Unlike CHP, SHP systems are not integrated, meaning they obtain fuel from several sources, such as central fossil-fueled power plants and onsite natural gas heating systems.
To get the complete picture of how CHP compares to SHP, let’s dive into the facts across a few key areas of focus.
Energy efficiency
According to the United States Environmental Protection Agency, the average efficiency of fossil-fueled power plants in the United States is 36%. This means that 64% of the energy used to produce electricity at most power plants in the United States is wasted in the form of heat discharged into the atmosphere.
Overall, SHP is 50–55% fuel-efficient. Alternatively, CHP systems typically achieve total system efficiencies of 65-80%, by recovering and using the otherwise-wasted heat from on-site electricity production.
How CHP systems compare to SHP systems
Cost savings
According to the U.S. Department of Energy and the EPA, installing 40 GW of new CHP capacity would save U.S. businesses and industries $10 billion each year in energy costs. These agencies estimate that such an investment would cost about $40 to $80 billion and could pay for itself within four to eight years.
CHP systems also reduce energy bills because of their high efficiency. Recurring costs are further reduced because the CHP output reduces the need for electricity purchases.
Sustainability
In their CHP Guide, the EPA explains that because CHP systems require less fuel to produce the same energy output as SHP systems, CHP can reduce emissions of greenhouse gases and air pollutants such as nitrogen oxides (NOx) and sulfur dioxide (SO2).
A CHP system can operate on various fuel types, such as natural gas, biogas, biomass, and more sustainable alternatives as they become widely available.
Currently, the emissions prevented by a single 5 MW CHP system are equivalent to the annual emissions of more than 5,400 passenger vehicles.
This diagram from the EPA illustrates the CO2 emissions output from electricity and practical thermal energy generation for two systems: (1) a fossil-fuel-fired power plant and a natural gas-fired boiler and (2) a 1 MW reciprocating engine CHP system powered by natural gas.
Growth potential
There is enormous growth potential for the CHP market: Global Market Insights forecasts revenue generation within the market to increase from $20 billion in 2016 to over $45 billion by the end of 2024.
Investing in CHP systems can also help stimulate local, state, and regional economies through job creation and market development. Demand for raw materials and construction, installation, and maintenance services can create green jobs and develop markets for future sustainable technologies.
The potential capacity for CHP also cannot be understated: a U.S. Department of Energy study identified nearly 14 GW of additional technical potential for CHP across more than 5,000 U.S. colleges and universities alone.
Forecast of potential CHP capacity additions through 2026
Reliability and resiliency
CHP systems are more efficient and more resilient, and reliable than conventional methods, especially when configured as part of an advanced microgrid. These systems can be designed to operate independently from the electric grid to enhance facility reliability.
Through the onsite generation and improved reliability, facilities can continue operating in the event of a disaster or an interruption of grid-supplied electricity.
A low-carbon future is here
Major U.S. cities like Boston, Cambridge, and Philadelphia are already reaping the benefits of CHP. CHP is integrated with local district energy networks in these communities, delivering low-carbon thermal energy to buildings and campuses across the cities’ urban core.
By leveraging existing district energy infrastructure and CHP, these cities are leading the way in America’s adoption of this powerful technology and forging ahead towards a zero-carbon future.
Natural gas prices are the highest they have ever been in over 10 years. In New England especially, this has many worried about the obvious global energy shortage. We are deep into the winter season, where natural gas is critically important to heating homes and businesses. At this crucial juncture, why are gas prices surging, and what can you do to protect yourself and stay warm this winter?
What is the situation?
According to Forbes, natural gas provides upwards of 30% of all American electricity, especially in the wintertime, and has doubled in price year-over-year. In Europe, the situation is even more dire – where prices have peaked to the energy equivalent of paying $180 for a single barrel of oil. Exporting to Europe means our prices also domestically rise, since we end up with a shortage through covering their deficit. This CNN article states that in East Asia, natural gas prices have risen approximately 85% since the start of September 2021, equal to about $204 for a single barrel of oil. It is becoming globally apparent that with the variable weather conditions and the resurgence of demand going into winter, every country is scrambling to acquire enough resources.
It is clear that there is a global energy shortage. Increasing liquefied natural gas (LNG) exports are contributing to rising U.S. natural gas prices by reducing domestic supply, which could have a major effect on New England’s energy markets and reserves this winter, according to FERC staff. Although regions across the country have reserve margins of at least 26%, FERC Chairman Richard Glick warned that that metric of adequate power supply may no longer be valid in the face of extreme weather, which can knock large numbers of power plants offline. New England is particularly at risk in this shortage because it relies solely on one import port and no ground pipelines, which has been affected by global supply chain problems. There are very few gas import terminals, and if there are any issues with a terminal, places like New England, which is not served by a land pipeline and can only receive supply via its import terminal, are at particular risk.
Many energy companies that utilize natural gas are worried about their dwindling backup fuel reserves with the upcoming winter, especially considering the disastrous weather conditions in Texas last year. In 2020, companies had more natural gas storage inventory than in 2021 moving into the winter. This lack of inventory is the first time our supplies have been lower, year-over-year, going into winter.
How can district energy companies like Vicinity help?
While the global energy shortage will impact everyone, there are strong 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 its customers through this global challenge:
Vicinity can negotiate fixed prices and better rates due to its superior bargaining power as a participant in wholesale energy markets, compared to a single building purchasing gas for its own boilers.
Vicinity monitors customer usage carefully to ensure there are enough supplies 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 its 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 the company is not reliant on natural gas.
Furthermore, with the electric grid’s growing adoption of more renewable sources, Vicinity is working on electrifying its district systems – a move that will drastically reduce its use of natural gas and conventional fossil fuel use.
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 continue 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.
However, despite the global energy shortage, Vicinity is well equipped to navigate these difficult times, unlike buildings with boilers that rely solely on natural gas. With multiple power supplies, back-up generation, and several water and fuel sources, district energy systems are reliable, robust, 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 electrification, to further reduce its use and reliance on fossil fuels.
The truth is, our society needs to pivot away from fossil fuel use, including natural gas. Fortunately, other much greener energy solutions and technologies exist for buildings. District energy provides a tremendous opportunity for building owners to not only benefit from energy reliability and cost, but also a lower carbon footprint.
PHILADELPHIA, December 9, 2021 – Vicinity Energy, owner of the nation’s largest portfolio of district energy systems, announces that it has been voted “Best Alternative Energy Company in Philadelphia” by the local community in Metro Philadelphia’s 2021 Philly’s Best awards.
The annual “Philly’s Best” list from Metro Philadelphia recognizes the best businesses in the city, awarding one winner per category. Recipients are nominated by the Philadelphia community and are selected by vote.
“We are honored to be recognized by the people of Philadelphia,” said Bill DiCroce, president and CEO of Vicinity Energy. “As a local company, Vicinity is deeply committed to the Philadelphia community and is proud to support the city’s ambitious sustainability goals by offering reliable and resilient green steam to local businesses and critical care facilities. Our pledge to sustainability and a clean energy future is one we don’t take lightly. We couldn’t be more eager to continue serving this vibrant city as we work together to reach net zero carbon emissions alongside the City of Philadelphia.”
The Vicinity district energy network in Philadelphia currently eliminates 300,000 tons of greenhouse gas emission annually in the region; the carbon reduction equivalent of removing 65,000 cars from the road. Earlier this year, the company announced its integration of renewable biogenic fuel derived from used vegetable oil obtained from Philadelphia restaurants into its energy mix, which reduces greenhouse gas emissions by over 80% versus distillate fuel, cutting carbon by an additional12,200 tons.
To read more about Vicinity and our commitment to innovation and the environment, check out Metro Philadelphia’s profile of the company and their award here.
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.
BALTIMORE, November 3, 2021 – Vicinity Energy, owner and operator of the nation’s largest portfolio of district energy systems, announces that it has extended its contract with the National Aquarium for an additional 20 years.
The historic National Aquarium in Baltimore is home to hundreds of different species of plants and animals, all of which require specific air and water temperatures. To support its cooling needs, the Aquarium recently extended a 20-year contract with Vicinity Energy for chilled water services, used in space cooling and to regulate temperatures in its exhibits. Since 2001, Vicinity Energy has been providing 1,250 tons of district chilled water to the National Aquarium, which hosts 1.2 million people each year. Vicinity is also a proud annual contributor to the Aquarium, supporting the institution’s efforts to educate visitors and help protect Chesapeake Bay aquatic habitats.
The Aquarium, and all of Vicinity’s Baltimore customers, will now benefit from a greener district energy system than ever before. This summer, Vicinity completed a major energy efficiency project, involving equipment and controls improvements, that is expected to reduce Vicinity’s overall electricity consumption by over 17%. This upgrade is also expected to increase system reliability and redundancy.
Vicinity Energy centrally produces and distributes steam, hot water and chilled water to over 30 million square feet of building space in Baltimore. More than half of the steam delivered to Baltimore customers is generated through zero carbon, non-fossil fuel-based renewables, resulting in greenhouse gas emissions reductions of 30,000 tons annually, or the equivalent of removing about 11,000 cars from Baltimore’s roads. The company also recently announced the purchase of 100% carbon-free electricity to run its Baltimore heating and cooling operations, which will eliminate up to 80% of greenhouse gas emissions from cooling operations and 90% of emissions from heating operations.
This announcement comes on the heels of several other recent moves by Vicinity Energy to green its district energy systems, including the incorporation of renewable biogenic heating oil, as it continues on its path to net zero carbon emissions.
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.
Modern commercial building managers and landlords have more to consider than ever when it comes to selecting an HVAC solution for their facilities. While energy efficiency, reliability, and cost-effectiveness are still of major importance, factors like sustainability and maximizing circulation due to health concerns are critical considerations as well. In order to stay competitive and attract desirable tenants, facility owners and managers need to look at the full picture when choosing a temperature control solution for their properties.
Two of the most often-considered solutions for building space heating and cooling are Variable Refrigerant Flow (VRF) and district energy. They both offer unique strengths and risks, and a careful analysis of both is necessary to make the smartest decision for your specific situation.
Variable Refrigerant Flow (VRF) systems
VRF is a refrigerant based heating and cooling system that utilizes a central outdoor condenser to feed multiple indoor evaporators. There are two main reasons a developer might choose to go with a VRF system: zoning controls and ductwork. VRF allows for more precise zoning controls, meaning if you need to heat or cool rooms to drastically different temperatures, VRF might be a good choice. Because VRF uses a central outdoor condenser, it also means there is less indoor equipment needed, such as utilizing separate window AC units for every room. This also keeps things quieter indoors.
There are several considerations to keep in mind about VRF systems, however:
Capital costs: VRF systems require upfront capital costs to install. Additionally, the average life of a compressor is about 10-15 years, and they range in costs from $5k to $15k in commercial buildings. This means that every 10-15 years, you’ll need to invest more capital to replace multiple compressors.
Maintenance: VRF systems consist of multiple complex pieces of equipment which require qualified HVAC mechanics to repair and maintain. This means either keeping HVAC technicians on staff or hiring a vendor each time maintenance or repairs are required.
Electricity reliance: VRF systems require electricity to run, which exposes buildings to multiple risks:
Buildings are at the mercy of sometimes volatile electricity rates and policy changes that may drive those rates up in the future.
Many buildings are billed based on peak electricity usage rates – essentially usage during the hottest and coldest days of the year. VRF can drive up peak demand (and costs) dramatically.
In the event of a loss of electricity, such as during a storm, the building would lose heating and cooling as well, which is dangerous to occupants, especially in very warm or cold climates, and could damage equipment and assets in the building.
Safety hazards: VRF systems require onsite use of potentially toxic refrigerants, which poses a safety risk to occupants of the building.
Space demand: VRF systems are normally housed on rooftops, which precludes that space from being used for building amenities, such as lounges, gardens, or rooftop pools. Additionally, there is a misconception that VRF systems do not require ductwork. Ductwork is certainly required to ensure safe air cycling in a building, especially as a result of COVID-inspired code changes to keep building occupants safe.
Reduced structural/building envelope integrity: VRF systems require roof penetration, which exposes the building to potential leaks or other structural issues.
District energy
District energy is a form of energy delivery in which steam and/or chilled water are generated at a central facility and then distributed through a network of underground pipes to buildings, rather than those buildings using onsite boilers or chillers that use fossil fuels. Entirely different from VRF technology, district energy has its own set of considerations when planning for your building’s heating and cooling needs.
There are several attributes to district energy that are worth considering:
Reliability: District systems are a great source of reliable energy, whether heating or cooling. The robust underground steel-encased pipes of a district network are reliable even in severe weather, and district energy systems maintain 99.99% uptime. Additionally, because its central facilities are fueled by multiple sources and have bult-in redundancies, reliable district energy cooling and heating is available even in the event of electrical losses. This is critical for the wellbeing of occupants and the protection of sensitive assets and equipment, especially for mission-critical facilities like hospitals, public safety facilities or laboratories.
No upfront capital costs: Because district energy does not require cooling or heating equipment onsite, there are typically no upfront costs associated with connecting to a district energy system – unlike the high upfront capital costs required for boilers, chillers, and cooling towers. Many district energy providers are even willing to invest in connecting a building to the district system and will cover the cost of any street repairs and beautification that comes up along the way. Often, existing ductwork in a commercial building can be retrofitted to accommodate district energy.
Scalability: District energy can be introduced gradually, if desired. Floors or areas of a building can be added one at a time. It is also possible to submeter for tenants, contrary to common misconception.
No rooftop penetration/space demand: District energy does not require rooftop chillers or compressors, freeing up rooftop space for amenities, a solar array, or other storage or equipment needs. This also means no rooftop penetration, which can reduce risk of damage due to a compromised building envelope.
Energy savings: Because district energy does not rely on electricity, building peak usage would be much lower than with VRF or installing electric units. That means that variable loads for heating or cooling would be drastically reduced, creating a flat load profile with lower demand charges.
Environmental (and financial) benefits: The reduced electricity demand would make a building eligible for more rebates and tax incentives. In some cases, the U.S. Green Building Council also assigns more LEED points to buildings that use district energy.
To summarize, it’s important to consider your reliability needs, ability to make an upfront capital investment, long-term maintenance needs, and sustainability/incentive goals when selecting the right HVAC system for your commercial building space. If you’re looking for some inspiration, click here to check out how other facilities are approaching their heating and cooling needs, from museums, to hospitals, to laboratories, and beyond.
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