Sustainability Archives | Page 2 of 2

Earth day 2023: Vicinity Energy’s climate progress

Posted on April 24, 2023July 23, 2024 by Don Silvia

Earth Day was officially recognized in 1970 when U.S. Senator Gaylord Nelson proposed the creation of the holiday in order to call attention to the need for national environmental regulations.

Twenty million Americans demonstrated across the country in favor of the Senator’s proposal, and Congress officially authorized the creation of a new federal agency to tackle environmental issues: the U.S. Environmental Protection Agency.

Today, Earth Day is celebrated around the world as millions of people get involved in their communities and spread awareness for the environmental movement and the fight against climate change.

The theme for this years’ Earth Day, “Invest in our Planet”, couldn’t be timelier. The health of our planet is dependent on businesses and governments working together to decarbonize their operations and preserve our Earth’s natural resources.

At Vicinity, we’re proud to be working with our customers, communities, and local government to decarbonize all our operations around the country.

The path to net zero carbon

This year, our team has made significant progress in our commitment to sustainabilty and decarbonization. To achieve net zero carbon emissions across our operations by 2050, we have begun making critical changes at our central facilities in Boston, Massachusetts, with our other locations to follow.

With the help of eSteam™, we are now able to offer renewable thermal energy to our customers. This innovative carbon-free product is designed to rapidly decarbonize the highest source of emissions in major cities: commercial buildings.

To begin offering eSteam™, we are installing electric boilers, industrial-scale heat pumps, and thermal storage at our central facilities. This year, these plans have become a reality.

Kicking off our electrification plans

Our first electric asset will enter service in late 2024, when we will procure electricity from renewable, carbon-free energy sources such as wind, solar, and hydro to generate eSteam™.

In 2022, our team successfully deconstructed a steam turbine at our Kendall, MA facility. This turbine utilized natural gas, and a 42 MW electric boiler will be installed in its place. The electric boiler will enter service in 2024, allowing our customers to utilize carbon-free electrified steam to heat and cool their buildings.

How will this work? We will purchase wholesale carbon-free power from the grid, import the power to our facility through a co-located electric substation, and convert the power into steam in this electric boiler.

An electric boiler uses electricity to turn water into high-pressure steam. Water is injected across two opposingly charged plates and, as the water strikes the opposingly charged plate, the water completes the electrical circuit and is instantaneously heated into steam. The result will be the generation and distribution of electrified steam—renewable thermal energy.

Boston Mayor Michelle Wu helped commemorate the deconstruction of the steam turbine in November 2022. “It is clear that the work of ensuring our planet remains livable is going to require all of us: every level of government, business, and community,” she noted.

The first business to utilize eSteam™ is Boston-based developer IQHQ, whose like-minded focus on sustainability made our partnership a great fit.

Their development at 109 Brookline Avenue will be completely powered by carbon-free eSteam™, making the office and laboratory space one of Boston’s first carbon-neutral buildings.

IQHQ is also utilizing eSteam™ at its Fenway Center development, a mixed-use campus that will include nearly 1 million square feet of commercial office and lab space. This expansion into the Fenway neighborhood paves the way for more building owners and property managers to leverage eSteam™ for building decarbonization in Boston.

Partnering with MAN Energy on industrial-scale heat pumps

This April, we took another step in our plans to electrify by partnering with Augsburg-Germany based MAN Energy Solutions to develop low-temperature source heat pump systems.

Rather than utilize natural gas, we will work with MAN to install an industrial-scale heat pump complex at our Kendall facility by 2026. Drawing inspiration from success stories in Europe, heat pumps will allow us to extract energy from the Charles River and use it to preheat water for our new electric boiler, improving the overall efficiency of the system.

From there, the water will be returned to the Charles River at a lower temperature so as to not damage the river’s ecosystems.

Over the next few years, our other district energy systems in Philadelphia and Kansas City, for example, will employ similar technologies to achieve net zero carbon emissions and offer eSteam™ to our customers.

Vicinity Energy teams commemorate Earth Day

This year, Vicinity’s teams around the country took action to improve the environment and spread awareness of the environmental movement throughout Earth Week, leading up to Earth Day on April 22.

From cleaning up natural spaces to labelling stormwater drains, our employees take pride in caring for the land around our facilities and bettering our communities for everyone.

Boston and Cambridge

employees volunteering — Our Boston and Cambridge team partnered with the Department of Public Works to label 100 storm drains around our Kendall facility in Kendall Square, Cambridge. The team labelled storm drains with a no dumping sign to help make the drains more visible and to remind people not to discharge hazardous materials, waste, or other pollution into these structures as they flow directly into the Charles River.

Two employees outside the office — Several teams from Vicinity’s Boston and Cambridge locations participated in the Built Environment+ Sustainability Scavenger Hunt. They explored sustainable practices in the built environment and completed daily missions around our offices and their homes.

Philadelphia

Workers painting on storm drains — Our Philadelphia team used a map from the water department to lay down stormwater inlet medallions at over 60 drains indicating that they lead to the Schuylkill River. This initiative plays a part in preventing water pollution and illegal dumping in our community.

Workers collecting debris — Our Philadelphia team worked with our neighbors PECO and the Schuylkill River Development Corp to clean up a section of the Schuylkill River trail behind our Philadelphia facility. The group collected more than 20 bags of waste and debris and disposed of it properly.

Children painting — The Vicinity Philadelphia team hosted a table at Naturepalooza, an annual Earth Day celebration hosted by the Schuylkill Center for Environmental Education. Our environmental craft experiment station used natural materials to make paint, including carrots, grass, and red cabbage. We also brought along our Carbon Capture cornhole game to teach everyone about the importance of trees, and everyone who played got an organic lollipop.

Baltimore

Oklahoma City

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.

Mayor Wu Kicks off Vicinity Energy’s Electrification Plans

Posted on November 17, 2022July 23, 2024 by Vicinity Energy

Cambridge, November 17, 2022 – Vicinity Energy, a decarbonization leader with the nation’s largest portfolio of district energy systems, serving over 70 million square feet of building space across Boston and Cambridge, has officially kicked off its electrification plans with the deconstruction of a steam turbine at the Kendall Green Energy Cogeneration Facility. Vicinity will install an electric boiler in its place, marking a critical step in the company’s Clean Energy Future commitment to reaching net zero carbon emissions across all its operations by 2050.

Boston’s Mayor Michelle Wu commemorated the day at Vicinity’s Kendall facility. Marking a crucial step toward a clean energy future for Boston and Cambridge, the deconstruction aligns with the Mayor’s latest move to file a home rule petition to ban the use of fossil fuels for new buildings in Boston.

“It is remarkable to be able to say that Vicinity is the first energy company in the country to electrify its operations. That is a huge deal and one that will have ramifications for generations to come. For every gigantic natural gas boiler that’s going to be decommissioned, for every new building that will use eSteam™, those are jobs created right here for our residents and our communities,” said Boston Mayor Michelle Wu. “It is clear that the work of ensuring our planet remains livable is going to require all of us: every level of government, business, and community. We’re very grateful that Vicinity’s carbon-free eSteam™ product will power the leading industries we’re already known for here in Greater Boston such as life sciences, healthcare, commercial real estate, and many more.”

“With the installation of this electric boiler, we are enabling a seamless conversion to carbon-free eSteam™ for our customers, including innovative commercial building owners and developers like IQHQ,” said Bill DiCroce, president and chief executive officer of Vicinity Energy. “This is game-changing for our communities and a prime example of what happens when government, the business community, and the energy sector work together and embrace the region’s Green New Deal.”

The electric boiler will enter service in 2024. At that time, the company will procure electricity from renewable, carbon-free energy sources such as wind, solar, and hydro to generate eSteam™, the first-ever carbon-free renewable energy product. IQHQ will be Vicinity’s first customer to power the rapid decarbonization of its buildings in Boston’s Fenway neighborhood: 109 Brookline and Fenway Center Phase 2 with carbon-free eSteam™.

“Today, we are excited to be celebrating the installation of the electric boiler,” said Jenny Whitson, director of sustainability & ESG at IQHQ. “By Vicinity taking this step to offer developers like us the opportunity to source electric steam generated by renewable energy, we are able to achieve our climate goals and carbon emission reduction targets for our projects.”

Over the years, Vicinity has evolved as new, cleaner fuel sources have become commercially available. The company’s predecessors burned coal to generate steam before migrating to oil, natural gas, and combined heat and power (CHP). Because district energy systems are agnostic to fuel type, they can quickly implement these new, more sustainable technologies and fuel sources. Electrification is the next crucial step to decarbonize Boston and Cambridge at scale and ensure both municipalities meet their new energy standards and emission mandates.

The Kendall Green Energy Cogeneration Facility simultaneously produces thermal energy and electricity in one efficient process to serve approximately 75% of Vicinity’s customers throughout the region. When the electric boilers begin service, all of these facilities will have access to carbon-free, renewable energy at once.

“Here in Kendall Square, a place known for global innovation, we are proud of Vicinity’s contribution to urban decarbonization with eSteam,” said Beth O’Neill Maloney, executive director at the Kendall Square Association. “Vicinity’s electrification plans will help contribute to the decarbonization of Cambridge and Boston without building-level changes. Vicinity is a global sustainability leader, charting a new path forward for district energy.”

Vicinity is on track to fully electrify its steam generation in Boston and Cambridge and introduce other technological advancements into its operations, including industrial-scale heat pumps and molten salt thermal energy storage. The company’s other locations across the country will undergo similar electrification processes in the coming years.

Click here to read more about eSteam™, district energy systems, and Vicinity’s commitment to innovation and the environment.

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 230 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

Vicinity Energy
Sara DeMille
Marketing and Communications
857-955-5073
sara.demille@vicinityenergy.us

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.

Rising natural gas costs and what they could mean for you

Posted on January 14, 2022July 23, 2024 by Rohan Sinha

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.

VRF vs. district energy: the best way to heat and cool your facility

Posted on November 2, 2021April 10, 2024 by Bella Pace

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.