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District energy supports higher education climate plans and journeys to 100% carbon neutrality

Posted on July 2, 2024July 1, 2024 by Pamela Clark

With approximately 5,300 colleges and universities in the U.S., there is a significant opportunity to improve the energy efficiency of campus buildings and the communities they operate in. According to the U.S. Energy Information Association, higher education campuses consume approximately 18.9 kilowatt-hours of electricity and 17 cubic feet of natural gas per square foot of floor space yearly, equating to significant carbon footprints and high energy costs.

In recent years, more than 330 universities and colleges have established climate action plans with aggressive targets, including becoming 100% carbon-neutral campuses by 2050 or sooner. To realize these ambitious goals, these institutions need to reduce building emissions and optimize energy efficiency while maintaining reliability with their energy solution.

Consisting of hundreds of academic buildings, medical centers, dormitories, and lab spaces, many university campuses are nestled in urban areas close to Vicinity’s district energy systems. Several major universities in Boston, Philadelphia, Baltimore, West Virginia, and other cities have long histories of relying on district energy for heating, cooling, lab processes, and humidification control.

Vicinity currently provides steam and chilled water to 23 higher education campuses, totaling over 32 million square feet of building space. These academic institutions use district energy to keep their campuses operating smoothly and leverage district energy to underscore their commitment to improving the world, combatting climate change, and fulfilling their sustainability missions. These efforts ultimately help attract sustainability-minded students and enable the universities to gain national attention for their impressive sustainability accomplishments.

Why district energy is a trusted solution

Vicinity partners with higher education institutions to explore opportunities for energy efficiency improvement and strategies to meet carbon neutrality. In collaboration with the universities’ facilities teams, Vicinity helps optimize their campuses’ energy consumption and reduce their carbon footprints with reliable district steam, tailored preventative maintenance programs, and training sessions. eSteam^TM, Vicinity’s carbon-free renewable energy product, is an innovative solution for universities and colleges with the most aggressive carbon reduction goals, ensuring they are on the fastest track to eliminate their campus’ carbon emissions.

In particular, Emerson College leverages eSteam^TM to not only achieve the City of Boston’s carbon emissions reduction targets established as part of BERDO 2.0 but also achieve its own sustainability goals, which are even more aggressive than the city’s mandate. With eSteam^TM, Emerson is on a streamlined path to a carbon-neutral and resilient campus by 2030.

Continuous improvement drives reliability and efficiency

Vicinity and many of our higher education customers have worked closely together over the years to drive improvements at Vicinity’s central facilities and on their campuses. As Vicinity upgrades our central district energy facilities, higher education customers immediately reap the benefits, including improved reliability and reduced carbon emissions.

As Vicinity continues to upgrade our central district energy facilities with electric boilers, heat pumps, and thermal storage as part of our Clean Energy Future commitment, district energy will further align with schools’ climate action goals. While we are first kicking off our electrification plans in Boston and Cambridge to support schools like Emerson College, we are rolling out these upgrades to our other locations. Emerson and other schools’ climate action goals highlight their commitment to a cleaner future, and their notable progress towards reducing their impact on the planet through district energy underscores their bold leadership in a climate-uncertain world.

Proactive maintenance supported by Vicinity’s experts

Vicinity partners with schools to improve their operations by offering training tailored to the unique needs of the facilities teams and providing operations and maintenance support. Vicinity’s onsite training equips the facilities teams with the tools to proactively maintain their equipment and prevent interruptions in service, which is especially critical for medical campuses. Topics include steam trap inspections, pressure regulating valves (PRVs), and other critical equipment.

District energy for critical campus operations

Our energy solutions for higher education facilities are reliable and green, helping advance the innovations that propel our customers and communities forward and protect the world we live in.

Increased reliability and sustainability – Without the burden of onsite combustion or maintaining chillers or boilers, district energy is a safer and more sustainable alternative. We have a 99.99% reliability guarantee and a team of over 450 energy experts, allowing you to focus on your work while we ensure 24/7 energy delivery.
Optimal sterilization and humidification – The CDC recommends steam sanitation over conventional sanitation methods. Vicinity can provide a safer, more environmentally friendly energy solution to keep your educational workspaces and laboratories primed for innovation.
Uninterrupted energy supply – Proper operations and maintenance (O&M) of energy infrastructure is essential to ensuring that campus buildings, including dormitories, laboratories, and research facilities, can rely on an uninterrupted thermal energy supply.
Remote monitoring – If your campus needs energy O&M support by a qualified engineer but does not require someone full-time onsite, we can provide remote monitoring of your energy infrastructure at our innovative control centers.
Energy efficiency and optimization – From efficiency assessments and investments to project implementation, our experts will create and provide a custom energy strategy to optimize your campus energy assets and provide solutions that drive energy efficiency.

Get started with district energy today to decarbonize your campus’ buildings and access reliable, uninterrupted service.

Digital billing made easy with the Vicinity Energy bill pay portal

Posted on June 1, 2024August 15, 2024 by Christopher Smith

Our commitment to sustainability and our customers extends beyond providing clean, affordable energy solutions to decarbonize cities and communities.

Partnering with both J.P. Morgan Chase and leading billing and payment solution provider Paymentus, our team has made a key transformation to increase digitization and allow our customers flexibility in paying their monthly invoices through an online bill pay option at www.vicinityenergy.us.

Bringing greater convenience to bill pay

Vicinity’s bill pay portal offers new payment methods that will deliver greater flexibility in how customers pay and manage their monthly invoices, accepting both ACH debit payments and all major credit cards.

To make monthly payments as simple as possible, we have also added AutoPay to our payment options. Customers who sign up for AutoPay enjoy “set-it-and-forget-it” convenience by automatically having their payment made each month. This capability allows customers to set a preferred payment date (e.g., the 20th calendar date of every month, or the due date on your monthly invoice) and automatically make payment from the customer’s saved bank account or credit card each month. Customers will receive payment confirmation once the payment has been made and can edit or cancel AutoPay elections anytime.

To sign up for AutoPay, visit the bill pay portal and select AutoPay within the menu. You can set your preferred payment date and enter your payment information.

Reducing our carbon footprint

An extended benefit of our digital customer payment portal is the reduction of paper consumption. Our commitment to net zero carbon is about more than the energy we provide and how we provide it: by reducing the amount of paper in our billing and payment process, we can ensure that we are limiting the environmental impact of our entire business operation.

Payment options, including AutoPay and credit cards, help us eliminate dependence on paper-based processes. These processes are faster, more efficient, and aligned with our mission of lowering our carbon footprint and curbing climate change.

Getting started

The customer payment portal offers an intuitive design that makes managing your account accessible than ever—simply login to your account to view the full menu of payment options and set your preferences.

For more information on our bill pay portal and how it can help you better manage and pay your invoice, please contact us or visit our frequently asked questions page.

Heating reimagined: heat pumps for building decarbonization

Posted on May 30, 2024September 24, 2024 by Bella Pace

Industrial heat pumps are revolutionizing the way we heat buildings. With the ability to produce temperatures of up to 150C, these robust systems have become a sustainable solution for across the globe. As the demand for carbon-free heating increases, the shift away from fossil fuels is finally gaining momentum.

Vicinity is diving into the world of heat pumps

Vicinity is entering a new era of sustainability and installing heat pumps as a cutting-edge technology that provides a carbon-free heating solution to our customers and aligns with ambitious emissions reduction goals nationwide.

In April 2023, Vicinity announced our partnership with MAN Energy Solutions to develop low-temperature source heat pump systems for eSteam™ generation. These plans are already in motion as we look ahead to 2028, when Vicinity’s Kendall facility in Cambridge will be home to Massachusetts’s largest industrial-scale heat pump complex.

Drawing inspiration from heat pump successes in Europe, this venture will create ripples on a national scale and serve as a testament to Boston’s commitment to shaping a greener future. Powered by renewable electricity, Vicinity’s heat pump complex will safely and efficiently harvest energy from the Charles River, returning it at a lower temperature.

With the heating sector responsible for a staggering 30 to 40% of global CO2 emissions, the time to implement sustainable energy solutions is now. Vicinity’s sustainability plans mirror the examples set by cities like Glasgow, Scotland, and Drammen, Norway, where water-source heat pumps have already made their mark. The first water-source heat pump that emerged in Glasgow in 2021 is three times more efficient than natural gas boilers and allows the city to tap into the renewable power of the River Clyde, just as Vicinity will do in Cambridge with the Charles River.

How will Vicinity’s heat pump complex work?

Vicinity is transforming district energy in the cities we operate in by installing an industrial-scale heat complex. By 2028, this complex will be operational at our Kendall facility, and installation in other systems in cities like Philadelphia and Kansas City will follow.

This innovative heat pump will draw heat from nearby water sources to generate steam and improve the system’s efficiency. The technology functions similarly to an air conditioning system, only it accomplishes the reverse on a much grander scale. Ensuring that the river and its ecosystems remain unharmed, the river intake system lifts heat from the river and brings it into our facilities.

Since most of this heat is transported rather than generated, heat pumps are much more efficient than traditional heating methods such as natural gas boilers and heaters, resulting in lower operational costs for building owners.

So, how are our plans progressing? Today, we are engineering the first planned industrial-scale heat pump complex at our Kendall, MA facility, and preparing our facility for its installation. The heat pump will occupy a space of approximately 25,000 sq. ft., and it will circulate through 24.5 million – 49 million gallons of water from the Charles River each day, returning the water to the river at a lower temperature.

Early design of the industrial-scale heat pump Vicinity Energy is developing.

Our systems will also employ electric boilers and molten salt thermal battery storage to fully decarbonize our footprint. Leveraging our existing system of underground steam pipes, we will seamlessly provide our customers with carbon-free eSteam™. Our first electric boiler will enter service in Cambridge in 2024.

What are the benefits of heat pumps?

Vicinity’s plans to utilize innovative industrial-scale heat pumps at our facilities present several benefits to our community and customers.

Harnessing local resources: The industrial-scale heat pump complex at our Kendall facility will harness the untapped thermal energy from the Charles River, setting new standards for sustainable urban energy production.
Phased implementation: Vicinity is rolling out this technology in stages. Our 42MW electric boiler will be operational this fall, and we are planning to install the 32MW water-source heat pump complex in 2028.
Leveraging existing infrastructure: Utilizing our 26-miles of steam distribution infrastructure and high-voltage connection to the grid will minimize urban disruption while providing a clear path to net zero emissions.
Empowering building owners: By shifting energy and operations risk to Vicinity’s central facilities, we enable cost-effective compliance with performance standards, accelerating adoption and the energy transition.
Replicable model: Vicinity’s initiatives in Boston and Cambridge serve as a blueprint for urban decarbonization across the U.S., enabling rapid, large-scale implementation.
Immediate and scalable impact: Vicinity is rapidly decarbonizing urban building spaces, starting with 70 million square feet in Boston and Cambridge and expanding to decarbonize 250 million square feet of customer space nationwide. By acting swiftly, we maximize the time value of carbon reduction, amplifying our climate impact.

District energy systems are agile. By replacing fossil fuel infrastructure with industrial-scale technologies such as heat pumps, we can effectively decarbonize our communities without retrofitting or installing new electrical infrastructure in our customers’ buildings.

Our history and future: Vicinity Energy in Philadelphia

Posted on May 9, 2024July 23, 2024 by Michael Ancona

Vicinity Energy, a trusted and reliable provider of district energy solutions, has a deep-rooted history in Philadelphia. District energy has been an integral part of the city’s energy infrastructure for over a century, evolving alongside the city of Philadelphia’s growth and development.

District energy’s early beginnings in Philadelphia

Philadelphia’s district energy system dates back to 1889 when the Edison Electric Light Company of Philadelphia—which later became part of the Philadelphia Electric Company—generated and sold electricity from its central facility at 908 Sansom Street. The company created an additional source of revenue by using exhaust steam from the facility’s engines to provide heating to a nearby house at 917 Walnut Street.

In 1903, a year after several local electrical companies consolidated to form the Philadelphia Electric Company, the company opened the first large-scale, centralized power facility in Philadelphia, the Schuylkill Station. Located at the intersection of Christian Street and Schuylkill Avenue, the facility’s original boiler house consisted of forty boilers powered by coal, which arrived by barge up the Schuylkill River.

Over the years, Philadelphia Electric Company made various updates to the facility to keep up with the increasing demand for electricity and different kinds of electricity used for various applications. In 1911, due to the demand for 25-cycle electricity to supply the street railway system, a frequency changer substation was installed to convert 60-cycle to 25-cycle. A year later, due to rapidly increasing demand for the 60-cycle system, the company’s transmission voltage had to undergo a material increase from a 6,000-volt two-phase system to a 13,200-volt three-phase system. In 1917, a 20MW 25-cycle turbine generator was installed.

As demand for both 60-cycle and 25-cycle electricity continued to increase, a new facility was built alongside the original Schuylkill Station. This new facility, known as Building A-2 at the time, housed a 35MW 60-cycle turbine generator—the world’s largest at the time—and a 30MW 25-cycle turbine generator.

In 1937, the ever-increasing need to supply Philadelphia with more 60-cycle power facilitated another major expansion at the station. Two 1250 pounds per square inch (psi) boilers were installed, superimposed over the existing equipment. The original 40 boilers in the station were removed, and a 50MW turbine generator was installed. This was a non-condensing turbine, which exhausted steam at 230 psi. The generator was also hydrogen-cooled, an innovative and efficient solution at the time.

As the Philadelphia Electric Company built other steam-generating facilities, like Willow Street Station, and developed its energy infrastructure, the company constructed a vast underground network to serve various buildings around the city with steam. The system became the third-largest district steam heating system in the United States. In 1950, Schuylkill Station was integrated into Philadelphia’s steam distribution network and eventually became the predominant steam supply. In 1957, 908 Sansom Street was rebuilt as a steam facility with additional boilers installed over the years. In 1997, a 163MW combined cycle plant, known as the Grays Ferry facility, made up of a 118MW gas turbine and 45MW steam turbine, was installed to efficiently provide 1.4 million pounds per hour of steam, displacing the existing 1937 generator and boilers.

A rich history of fuel switching

While coal was used as the steam facilities’ primary fuel source, the boilers were converted to oil in 1937 and later used natural gas. Today, Vicinity’s Grays Ferry facility relies on the efficient combined heat and power (CHP) process to generate heat and electricity simultaneously. Vicinity also leverages LR100 biogenic fuel, waste cooking oil discarded by the local food service industry, to generate steam while pushing the clean energy transition, reducing greenhouse gas emissions, and improving local air quality.

How district energy supports Philadelphia today

Since Vicinity’s acquisition of Philadelphia’s district energy system in 2020, we have made significant investments in the infrastructure to improve reliability, resiliency, and efficiency. The Grays Ferry cogeneration facility serves over 72 million square feet of building space with steam, including notable landmarks such as the Walnut Street Theatre, 2 Liberty Place, and Jefferson Health.

The Grays Ferry cogeneration facility demonstrates our impact on the local energy landscape. By generating steam transported through a network of 41 miles of underground pipes, we provide heating and cooling to various Center City office buildings, healthcare, life science, and university campuses.

Our commitment to reducing greenhouse gas emissions is evident in the Grays Ferry facility operations. The district energy system has achieved an annual reduction of nearly 300,000 tons of greenhouse gases, equivalent to removing almost 65,000 cars from the roads yearly. This commitment to sustainability aligns with the City of Philadelphia’s broader climate goals and positions district energy as a critical solution in shaping the city’s clean energy future.

Electrification plans for Vicinity’s Grays Ferry facility

Our plans to electrify Grays Ferry demonstrate our commitment to sustainability and support for the city’s climate goals. To further reduce greenhouse gas emissions, our carbon-free eSteam™ solution integrates renewable energy sources like wind, solar, and hydro and innovative technologies, including industrial-scale electric boilers and a heat pump complex to reduce the facility’s reliance on fossil fuels. Additionally, we plan to investigate thermal energy storage to optimize energy usage, lower costs, and increase efficiency.

Electrifying our Grays Ferry facility will substantially decrease the carbon emissions associated with steam production, aligning with Philadelphia’s goal of achieving carbon neutrality by 2050.

By engaging and partnering with local stakeholders, including government agencies, customers, community groups, and other organizations, we ensure we align with our customers and the city and community sustainability goals. These collaborations will help address potential challenges and identify opportunities for further improvements to contribute to a cleaner, greener Philadelphia for future generations.

Earth Day 2024: Vicinity Energy’s climate progress

Posted on May 1, 2024July 23, 2024 by Bella Pace

Each year, on April 22nd, and throughout the month of April, millions of people around the world get involved in their communities and spread awareness for the environmental movement and the fight against climate change.

In honor of Earth Day, our teams championed our commitment to sustainability by participating in clean-ups and community events in the areas we serve. Our commitment doesn’t end there: we’re proud to say our teams work to better our communities year-round.

Our progress to net zero carbon emissions

This year, our team has made significant progress in our commitment to sustainability and decarbonization. To achieve net zero carbon emissions across our operations, we are making critical changes at our central facilities in Boston and Cambridge, with our other systems in cities across the country to follow.

These sustainable upgrades will enable us to serve our customers with eSteam™, our renewable thermal energy product. eSteam 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 been set in motion with critical electrification upgrades.

Critical electrification updates

Vicinity started off Earth Month strong with the installation of our new, 42MW electric boiler at our Kendall facility in Cambridge. Our team has been working tirelessly to get this advanced technology up and running, and after months of preparation and coordination, it was finally installed. The boiler will soon deliver carbon-free eSteam™ to our customers.

This first electric asset will enter service in the summer of 2024, when we will procure electricity from renewable, carbon-free energy sources such as wind, solar, and hydro to generate eSteam™. We will purchase this wholesale carbon-free power from the grid, import the power to our facility through a co-located electric substation, and use it to create steam with the electric boiler.

Our teams are also actively engineering the low-temperature source heat pump system that will be employed in conjunction with the electric boiler at our Kendall facility.

We are installing this industrial-scale heat pump complex at our Kendall facility in 2026. Rather than utilize natural gas, the system 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 Grand Rapids, for example, will employ similar technologies to achieve net zero carbon emissions and offer eSteam™ to our customers. These locations are currently procuring electric boilers to be installed in the next year or two.

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 Month, leading up to Earth Day on April 22nd.

From cleaning up our local parks and rivers, to supporting community efforts, our employees took action this year to better the communities we serve for all.

Philadelphia

Boston and Cambridge

This year, our Boston team partnered with Speak for Trees Boston to host a teach-in session in which we learned about Speak for the Trees mission, the ins and outs of their Care for Street Trees Program, the importance of caring for the urban canopy, and the impacts of the heat island effect in cities like Boston and Cambridge. After the class, our team went on a walk through our neighborhood to identify the trees we can help care for in our area.

Oklahoma City

Baltimore

The top three questions to help you decide between onsite natural gas boilers or district energy

Posted on March 28, 2024June 26, 2024 by Pamela Clark

Evaluating your energy options and making the right choice for long-term operations and sustainability goals

Choosing the right energy infrastructure for your building is essential. You need to install appropriate equipment to meet your load requirements and it’s important to consider a variety of factors that impact the best investment for you.

Facility managers and building owners have many options to consider when it comes to heating and cooling. In many U.S. cities, it’s common to compare the costs of installing and maintaining onsite natural gas boilers against using a centralized system, like district energy. However, evaluating these two options isn’t always straightforward. To ensure you’re comparing apples-to-apples and making the best energy decision to meet your business objectives, make sure to ask these three key questions:

What are the lifecycle costs?
What are my opportunity costs?
Does this energy option align with our institutional objectives?

Calculating lifecycle costs

Here are our two cents: It’s easy to look strictly at the price of natural gas today and conclude that onsite gas boilers are the right economic choice for your facility. However, this is not always the case. It’s risky to evaluate a long-term investment by only accounting for one variable – fuel costs.

The most effective way to compare between onsite natural gas boilers and district energy is to calculate lifecycle costs. A lifecycle cost analysis is a powerful tool to determine the cost-effectiveness of the different investment options you’re considering. This analysis considers many factors, including the equipment’s purchase price, financing costs and operating and maintaining the equipment over time. Boiler maintenance is often overlooked but can be a significant expense.

A lifecycle cost analysis provides you with the most comprehensive picture of your energy options’ costs and benefits. You can use the data-backed lifecycle analysis to support your decision when discussing energy alternatives with internal stakeholders. Many of us feel the pressure to make long-term investment decisions in an uncertain and challenging environment, where capital and budgets are tight. Using this tool can help you feel confident you’ve done the work to validate and justify your decision through a robust analysis.

In any lifecycle cost analysis of gas boilers versus district energy steam, it’s essential to include and assess the following variables:

Financing costs: Both natural gas plants and district energy connections typically require an up-front investment. The investment size will vary mainly depending on the natural gas equipment and connection costs for district energy. Suppose you need to borrow money from the bank to purchase and install equipment or make other modifications to your space, including loan expenses. In that case, you will need to include the capital cost in your analysis. Interest expense is often overlooked and can be quite large, depending on the project’s size and your borrowing rate.Even if your organization has capital in the bank to cover the cost of a new plant, there is always an opportunity cost to using those funds for energy infrastructure, which we’ll cover in Assessing Your Opportunity Costs. You could use the capital to finance projects that are more aligned and core to your institutional priorities or toward revenue-generating investments.

Operations and maintenance (O&M): There are always costs associated with owning, operating and maintaining your equipment. O&M could include full-time staff (consider in your analysis the fully burdened labor costs inclusive of taxes, benefits, etc.) or contractors operating the system. It’s essential to check your local regulations to ensure that you factor in the appropriate number of people with the right qualifications/licensing to meet your city’s requirements. You will also need to account for ongoing maintenance, including parts replacements and future upgrades to keep your system running optimally.Natural gas plants tend to require much higher operating costs, especially over time as systems age, whereas district energy requires little to no O&M budgeting.

Variable energy costs: As discussed earlier, many facilities managers and building owners look at the low price of fuel and immediately assume an onsite natural gas plant is the answer. It’s undoubtedly a critical input to the decision-making process. But, to assess your variable energy costs, you need to consider not only the commodity itself but also supply costs and any expectations for increases in future consumption, such as an expansion of a hospital wing.While no one has a crystal ball, we are transitioning quickly to a low carbon economy where carbon taxes are more likely to be a reality. Any decision you make today will have consequences for the next few decades. While the fuel costs are a factor for both district energy and an onsite natural gas plant, many district energy companies are evaluating alternatives to gas and fossil fuels. District energy systems can evolve and adapt to different fuel sources as new technologies emerge.And, finally, evaluate the rate structure(s). It’s vital to ensure you fully understand the rates associated with natural gas and district energy. For example, are you being offered a firm or an interruptible rate? If it’s the latter, while often much less expensive, remember that your service can be interrupted at any time and that this could directly impact your operations.

Fixed costs: The fixed costs associated with each option need to be carefully assessed. District energy companies tend to charge a capacity rate, a charge to reserve capacity on the system to ensure your load is uninterrupted. Other fixed costs that should be incorporated are taxes and insurance, which can vary depending upon the option you are evaluating.

Assessing your opportunity costs

Even if you have the capital on hand to finance new equipment, there are always opportunity costs with every investment decision, such as losing potential gain from other alternatives. If you spend your cash on a new mechanical room, that leaves less budget to invest in your core operations. For a hospital, this could mean new technologies or equipment to treat patients, upgrades or expansions to tenant spaces for commercial real estate, or a new lab building on a college campus to educate students. All these examples tie directly to an organization’s core mission. Depending upon the required capital cost for an energy infrastructure project, it’s important to think about the investments you’re giving up or foregoing that could better serve your customers or constituents.

In addition to capital, there are opportunity costs associated with space, particularly in cities where it’s limited and expensive. How property managers utilize and leverage space is vital to the bottom line. Typically, mechanical rooms, large chiller or boiler plants and cooling towers take up a considerable amount of precious space within urban buildings. Of course, there could be other valuable uses for your space to consider, from amenities and retail to storage and parking.

Finally, consider the opportunity cost associated with an outage. Outages can impact your tenants’ safety, comfort or well-being of your patients. Interruptible rates are less expensive but provide the utility with the ability to interrupt your service on what could be a peak winter day or a critical business operation. Evaluating the cost of an outage and downtime is vital in assessing which option to select to best meet your energy needs.

Alignment with other institutional objectives

The last piece worth considering is the alignment of your decision with other institutional objectives. While it’s often difficult to put a dollar figure around objectives, positioning your energy investment to align with your organization’s goals can be valuable.

Many companies and institutions today have environmental, health and safety (EH&S) objectives. Energy decisions have a direct impact and correlation with environmental or sustainability goals. As organizations seek to reduce their carbon footprint, an energy infrastructure decision can be heavily influenced by expected emissions output. However, there are other EH&S-related impacts from an energy infrastructure decision, including the safety of occupants from onsite combustion, other onsite mechanical equipment, air quality and many other factors to consider.

As you evaluate your organization or facility’s options, carefully consider how each of them supports or detracts from your objectives. For example, will steam deliver more immediate carbon savings, relative to onsite combustion, to meet sustainability goals? And, importantly, review the policies your local jurisdictions are considering. These financial impacts on your organization shouldn’t be overlooked.

Making the right choice

Ultimately, the factors that lead to your energy infrastructure decision will be unique to your organization’s goals and circumstances. While there are many factors to consider when making an energy decision – from incentive programs, opportunity costs, sustainability objectives and more – a lifecycle cost analysis ensures you are comparing apples-to-apples to make an informed energy decision that meets your institution’s goals and objectives.

How district energy is helping commercial buildings meet Boston’s BERDO 2.0 requirements

Posted on March 14, 2024October 29, 2024 by Scott McBurney

Like many cities nationwide, Boston has set aggressive climate goals to curb the harmful effects of climate change. Boston aims to be carbon-neutral by 2050, meaning the City will only be able to release as much carbon as the environment can safely absorb.

But how does the City plan to make this happen?

In large part, carbon neutrality will come from decarbonizing the energy-intensive buildings that operate in Boston: commercial offices, hospitals, colleges and universities, and many others.

The Building Emissions Reductions and Disclosure Ordinance (BERDO), originally enacted in 2013, required large Boston buildings to report and disclose their emissions.

In 2021, however, the amended ordinance — BERDO 2.0 — was unanimously passed by the Boston City Council and signed into law, officially moving the ordinance beyond reporting and setting enforceable emissions standards for buildings. In 2023, BERDO 2.0 policies and procedures were finalized.

Crucially, the ordinance aims to eliminate the 70% of greenhouse gas emissions that commercial buildings contribute to the City of Boston.

What BERDO 2.0 means for Boston building owners and developers

The 2021 amendment to BERDO gives the City of Boston authority to set emissions standards for large existing buildings. The emissions thresholds will decrease to reach net zero by 2050.

BERDO 2.0 states enforceable minimum building emissions performance standards, measured in kilograms of carbon dioxide equivalent per square foot per year. These emissions standards differ by building use but will begin to apply in 2025 for already-covered buildings and in 2030 for newly-covered buildings. Based on 2022 emissions reporting, several hundred buildings in Boston are projected to exceed their emissions limit in 2025.

BERDO 2.0 also imposes changes in enforcement penalties. The amended ordinance introduced fines for failing to meet the performance standard and inaccurate reporting.

BERDO 2.0 does not just apply to commercial buildings, but also applies to the following:

Non-residential buildings that are 20,000 square feet or larger.
Residential buildings that have 15 or more units.
Any parcel with multiple buildings that sum to at least 20,000 square feet or 15 units.

In addition, the amended ordinance proposes potential ways buildings can achieve their required emissions reductions, including on-site energy efficiency or renewable energy measures, fuel switching, and clean electricity purchasing options like Renewable Energy Portfolio Standard (RPS) Class I eligible Renewable Energy Certificates (RECs) generated by non-CO2e emitting sources, and Power Purchase Agreements (PPAs) with non-CO2e emitting renewable sources.

To find out whether they are over the emissions limit and get an estimated emission reduction forecast, buildings can use the City of Boston’s BERDO emissions calculator.

How district energy meets BERDO 2.0 requirements

Our team of experts at Vicinity is prepared to help building owners and developers in Boston meet the aggressive emissions reduction requirements posed by BERDO 2.0 and avoid paying alternative compliance payments.

Our clean energy future plan outlines our roadmap to reaching net zero carbon emissions across all our operations by 2050 or sooner. Central to our decarbonization plan is the innovative eSteam™ product.

To generate eSteam™, Vicinity will import carbon-free electrons through co-located substations to power electric boilers, coupled with industrial-scale heat pumps and thermal storage, to deliver electrified, carbon-free steam, known as eSteam™, for heating, cooling, sterilization, humidification, and other thermal energy needs.

Building upon success stories in European countries like Norway, Finland, and Sweden, Vicinity is electrifying our district energy systems. Our approach is based on our ability to:

Leverage established technologies such as industrial-scale electric boilers, heat pumps, and thermal storage to convert electricity into steam;
Capitalize on the flexibility of our existing assets that connect to the electric transmission system today;
Take advantage of the future economics of renewable electricity to introduce green electrons to our fuel mix;
And utilize the agility of fuel-agnostic district energy to decarbonize, easily “flipping the switch” to greener fuels.

By electrifying our central facilities, all our customers can access carbon-free eSteam™ to meet building performance standards and avoid costly building modifications.

Our team is actively working towards our goal of net zero. In November 2022, we kicked off our electrification plans by deconstructing a steam turbine at our Kendall facility. We are installing an electric boiler in its place, which will enter service in 2024.

In April 2023, we took another crucial step in our clean energy future plans by announcing our partnership with MAN Energy Solutions to develop low-temperature source heat pump systems for steam generation. Currently, we are designing the heat pump complex, which will occupy a space of approximately 25,000 sq. ft. and will circulate through 24.5 million to 49 million gallons of water from the Charles River each day, returning the water to the river at a lower temperature and ensuring that the river and its ecosystems remain unharmed.

Meeting BERDO 2.0 requirements with eSteam™

eSteam™ is carbon-free and recognized in the BERDO 2.0 regulations. This thermal product offers a straightforward solution for commercial landlords and developers trying to meet the ordinance’s carbon-reduction goals.

Vicinity’s eSteam™ is recognized as emissions-free by BERDO 2.0 regulations, providing customers with a compliant and cost-effective solution.

The Vicinity team assists customers in Boston with BERDO 2.0 reporting energy usage through Energy Star Portfolio Manager, one of the three reporting requirements set by BERDO 2.0.

Our team sends energy usage data and an annual energy summary to customers every month, making their reporting process more efficient and accurate.

Carbon reduction acts in Boston and beyond

While Boston is undoubtedly leading the country by reimagining the energy industry, many other cities around the U.S. are planning to enact ordinances similar to BERDO 2.0.

The City of Baltimore, for example, is currently in the implementation stages of the Climate Solutions Now Act, or SB 528. The act proposes a greenhouse gas reduction goal of 60% by 2031, with net zero carbon emissions by 2045.

Vicinity’s district energy systems are uniquely poised to help building owners and developers in Boston, Cambridge, Baltimore, Philadelphia, and more to meet building performance standards today and in the future.

Decarbonizing public infrastructure: How government buildings are leading the energy transition

Posted on January 30, 2024July 18, 2024 by Bella Pace

Today, government agencies juggle competing priorities, balancing budget restraints, hiring needs, improving processes, and focusing on reducing carbon impact.

Municipal, state, and federal buildings have unique energy requirements. From courthouses and state houses to medical facilities and libraries, these buildings must serve the needs of the public while keeping employees comfortable and able to do their critical work.

Sustainable energy solutions for government buildings

Government buildings have a significant opportunity to decarbonize their operations. Around the world, building operations and materials are responsible for roughly 42% of annual carbon emissions.

Across the U.S., leading cities are taking action to reduce this substantial carbon footprint. Building performance standards are being enacted, requiring buildings to reduce carbon emissions. These requirements make low-carbon, sustainable energy a non-negotiable requirement for new and existing buildings, and government operations are no exception.

In 2023, the Federal government announced the first-ever Federal Building Performance Standard (BPS), which aims to cut energy use and electrify equipment and appliances in 30% of Federally owned building space by 2030.

Many federally owned buildings are partnering with district energy systems to meet these carbon requirements and appeal to eco-conscious employees. Federal buildings currently connected to district energy systems can instantly meet the requirements set by the new standard, and buildings connected in the future can also meet these requirements while benefitting from the efficient, sustainable, and reliable service district energy provides.

Supporting mission-critical work

Because district energy systems leverage centralized infrastructure to serve multiple buildings connected to one system, cities across the U.S. are turning to district energy to advance their clean energy goals and meet their reliability needs.

District energy systems are fuel agnostic, making them a powerful tool for building decarbonization. Vicinity is deploying innovative technologies and integrating renewable energy sources such as wind, solar, and hydro into our systems to decarbonize the buildings we serve by 2050 or sooner. With Vicinity, building owners and operators can rely on an uninterrupted energy supply while reducing their carbon impact.

By connecting to Vicinity’s district energy system, government buildings not only have access to reliable, sustainable energy but are also supported by a team of experts to ensure their operations run smoothly and efficiently. Our specialists include experienced licensed engineers, operators, and financial professionals who provide dedicated service.

Vicinity Energy serves over 40 million square feet of government building space nationwide, working as a trusted energy partner with federal and state operations, from libraries and city halls to federally-owned hospitals.

Benefits of district energy service

From reducing carbon emissions to improving resilience, district energy systems provide reliable service to government buildings so they can focus on the vital work that is shaping our country. With district energy, government buildings can free up additional space, reduce energy expenses, and meet emission reduction requirements.

Vicinity’s energy solutions for government buildings are reliable and sustainable. They help advance the innovations that propel our communities forward and protect the world.

Increased reliability and sustainability – District energy is a safer and more sustainable alternative to onsite chillers or boilers. Vicinity’s 99.99% reliable energy service allows government operations to focus on their critical work.
Reduced carbon footprint – As Vicinity electrifies our district energy systems, carbon-free energy helps buildings better align with government efforts to protect the health of local ecosystems and communities.
Transferred energy risk – Vicinity’s district energy systems have interconnected central facilities with multiple power supplies, fuel sources, and back-up generation to ensure continual service. In addition, connected buildings reduce energy risk by transferring operations and maintenance (O&M) responsibility to Vicinity’s energy experts.
Reduced operations and maintenance costs – Vicinity’s O&M services maximize your infrastructure investment by keeping building energy systems working at peak performance.

Get started with district energy today to decarbonize your buildings and access reliable, uninterrupted service.

Market update: natural gas outlook winter 2024

Posted on January 24, 2024June 14, 2024 by Rohan Sinha

As we continue into the winter season, Vicinity’s team has been evaluating weather patterns and predictions for the natural gas market to prepare our customers for potential price fluctuations.

After peaking in December 2023, the El Niño pattern continues, and February 2024 weather forecasts indicate above-average temperatures in the Northeast and Midwest, induced cooling in the South, and higher precipitation in the Pacific, which experts predict may continue into the remainder of the winter season.

The natural gas markets have reset to similar levels as 2021, before the geopolitical events in 2022 drove prices above average.

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

Prior to January 2024’s well freeze-offs, the U.S. lower 48 saw strong natural gas production, primarily due to efficiencies in the Permian Basin of the U.S. that have provided ample supply to the market, mitigating demand risk. However, due to colder weather in the Permian basin in recent weeks, natural gas production has fallen.

Currently, natural gas storage levels are 4% above 2023 levels and 5% above the 5-year average. Europe’s storage facilities were 80% full through the first half of January 2024, slowing European demand for LNG and suppressing pricing.

Colder weather conditions in January 2024 have contributed to well freeze-offs in the Permian natural gas basin, impacting output and potentially providing more upside risk to pricing. However, the January 2024 futures contract settlement was less than levels at this time last year.

Key electrification progress

The adverse effects of natural gas far outweigh the benefits of continuing to invest in this unsustainable fuel source.

In 2023, the U.S. saw an estimated 1.9% decrease in carbon emissions, as measured in research done by the Rhodium Group. Throughout the year, emissions remained below pre-pandemic levels and dropped to 17.2% below 2005 levels.

While this decrease is substantial, an even greater emissions reduction is necessary to limit climate change. In 2023, Earth’s average land and ocean surface temperature was 2.12 degrees F above the 20th century, making it the highest global temperature among all years recorded since 1850, according to the U.S. National Oceanic and Atmospheric Administration.

The undeniable climate crisis drives Vicinity’s progress towards transitioning away from fossil fuels and eliminating carbon emissions from our operations. By electrifying our operations nationwide, we will be able to offer an affordable, carbon-free path for building owners to meet sustainability goals and join us in limiting climate change.

Our first electric boiler has been delivered to our Kendall facility in Cambridge, Massachusetts, and it will enter service in 2024, immediately allowing our customers to harness carbon-free energy and decarbonize their buildings.

The industrial-scale heat pump complex we are developing in partnership with MAN Energy Solutions is undergoing engineering and will enter service in 2026. These milestones demonstrate our commitment and progress towards a net zero carbon future.

How district energy meets the Federal Building Performance Standard

Posted on January 20, 2024March 10, 2025 by Matt O'Malley

The Biden Administration announced the first-ever Federal Building Performance Standard (BPS), which aims to cut energy use and electrify equipment and appliances in 30% of Federally owned building space by 2030.

This announcement paves the way for Federal buildings to adopt cleaner, more energy-efficient technologies. This transition to green energy is critical to achieving President Biden’s net-zero emissions goal across all Federal buildings by 2045.

Many states and cities around the U.S. are enacting similar fossil fuel bans for existing and new buildings. In Boston, for example, Mayor Michelle Wu recently announced that she intends to file legislation that allows for a ban on the use of fossil fuels for new developments and renovations in Boston.

In Maryland, the Climate Solutions Now Act of 2022 sets a statewide greenhouse gas (GHG) reduction goal of 60% by 2031 and net-zero by 2045. The legislation also includes building performance standards like reporting direct emissions from heating starting in 2025 and achieving a 20% reduction in direct emissions by 2030.

Philadelphia’s Climate Action Playbook outlines strategies to achieve a 50% reduction in emissions from the built environment by 2030. Kansas City outlined key goals for achieving carbon neutrality in municipal operations by 2030 and carbon neutrality citywide by 2040.

Biden’s aggressive Federal standard is poised to reduce emissions for a massive swath of U.S. buildings: the U.S. General Services Administration (GSA) owns and leases more than 371 million square feet of space in 8,600 buildings in more than 2,200 communities.

So, what is the impact of this effort? The U.S. Department of Energy estimates that over the next 30 years, this new standard would reduce Federal building carbon emissions by 1.86 million metric tons and methane emissions by 22.8 thousand tons.

What does the new Building Performance Standard mean for Federal buildings?

The Federal BPS requires Federal buildings to phase out on-site fossil fuels for end-uses such as heating buildings or producing hot water.

Buildings must eliminate 30% of Scope 1 emissions, defined as “direct GHG emissions from sources that are owned or controlled by the Federal agency,” by 2030.

Scope 1 emissions are also defined as emissions primarily associated with the following:

Fuel combustion for owned or on-site generation of electricity, heat, cooling, or steam
Fuel combustion for agency-controlled mobile sources
Intentional or unintentional GHG releases, i.e., fugitive emissions
Manufacturing, industrial, and laboratory processes energy

According to the rule, approximately one-third of Federal building-related greenhouse gas emissions are Scope 1 emissions generated from on-site fossil fuel combustion, commonly powered by natural gas-fired equipment.

The rule also defines Scope 2 emissions as “Indirect GHG emissions resulting from the generation of electricity, heat, or steam purchased by a Federal agency.”

In short, Federal buildings currently using on-site natural gas boilers will be required to switch to an alternative option, like connecting to a utility-scale district energy system or installing their own electrification equipment, such as heat pumps.

How can federal buildings meet this 30% reduction requirement by 2030?

The primary pathway to achieve this goal is to electrify all appliances and equipment used for processes like space heating and domestic or service water heating. However, the rule also highlights another option, one that already exists and doesn’t require any upgrades or retrofits to buildings: connecting to district energy.

What does the Federal BPS mean for buildings connected to district energy systems?

The over 600 district systems operating throughout the U.S. power college campuses, commercial buildings, and cities using efficient, reliable, clean steam.

Biden’s standard makes an important distinction for buildings receiving electricity, hot or chilled water, or steam via district energy.

If the district system is agency-owned, the building must include the direct Scope 1 emissions from the district system in determining whether the agency can help the building meet the BPS goal.

However, utility-owned district systems, like Vicinity Energy’s, are categorized as indirect, Scope 2 emissions, and not part of the new Federal BPS.

Federal buildings currently connected to Vicinity’s systems can instantly meet the requirements set by the new standard, and buildings connected in the future can also meet these requirements while benefitting from the efficient, sustainable, and reliable service district energy provides.

Vicinity Energy’s systems will help buildings meet mandates like BERDO 2.0 in Boston, BEUDO in Cambridge, and now the new Federal BPS; however, our systems are moving beyond these requirements as we are taking steps to electrify our operations and decarbonize the cities we serve.

Our progressive climate action plan will allow us to reach net-zero carbon emissions ahead of our 2050 commitment by electrifying all of our central facilities and instantly decarbonizing the buildings we serve. With a combination of proven technologies such as water-source heat pumps, electric boilers, and molten salt thermal storage, we can offer our customers eSteam™, the nation’s first-ever carbon-free energy product powered by renewable energy sources like solar, wind, and hydro power.

In November of 2022, Boston Mayor Michelle Wu, along with Vicinity’s customers and partners, celebrated a significant step forward in these plans to electrify with the deconstruction of a steam turbine at our Kendall Green Energy Facility in Cambridge, Massachusetts.

An electric boiler is taking its place and will enter service in 2024 to begin powering Boston and Cambridge-based buildings, like those owned by innovative customers such as IQHQ, with carbon-free eSteam™.

While we commemorated this exciting step in Boston and Cambridge, our other locations in Philadelphia, Baltimore, Kansas City, and more will undergo similar electrification processes in the coming years.