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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.

The top seven questions to ask when selecting an energy provider

Posted on January 9, 2024May 29, 2024 by Pamela Clark

Facility managers and building owners have many options to consider regarding heating and cooling a property. However, evaluating these options isn’t always straightforward.

To ensure decision-makers make the best choice to meet their organization’s business objectives, these questions are critical to ask when vetting energy providers.

1. What are the lifecycle costs?

A lifecycle cost analysis will give you the most comprehensive picture of an energy option’s costs and benefits. You can then use this data-backed analysis to support your decision when discussing energy alternatives with internal stakeholders.

An energy lifecycle cost analysis typically reviews costs over a 20-year cycle, to account for the full lifespan of energy infrastructure. A typical lifecycle cost analysis assesses the following variables:

The up-front costs required to finance the energy option
Costs associated with operating and maintaining the infrastructure
Variable energy costs related to the infrastructure, such as fuel costs
Fixed costs such as taxes, insurance, and capacity rates

It’s essential to understand how your energy provider can help your organization mitigate capital risk. District energy systems, for example, often help reduce capital risk by avoiding large upfront costs and ongoing maintenance costs.

Steam distribution systems can interface with any type of HVAC building system to provide low cost and reliable thermal energy and cooling. Centrally produced chilled water eliminates the need for customers to purchase, operate, and maintain chillers and cooling towers. These benefits allow building owners to take advantage of competitive energy pricing and eliminate capital costs, interest payments, property taxes, and insurance costs.

2. What renewable energy options do you provide?

Today, many companies and institutions have sustainability goals to meet, and energy decisions directly impact these initiatives.

As your organization seeks to reduce its carbon footprint, an energy infrastructure decision should be influenced by the solution’s emissions output and a provider’s ability to adopt more sustainable energy options in the future.

Decision-makers should explore the energy provider’s renewable energy options and inquire about their plans to incorporate more sustainable fuels into their energy mix. This will help reduce an organization’s carbon footprint and attract top tenants who prioritize working in a sustainable, energy-efficient space.

In addition, buildings that do not conform with local, state, and federal climate legislation requirements can pose several risks to organizations. In many places, the risk of non-compliance can include fines, damaged brand image, and the increasing costs of green technologies over time.

District energy systems, however, are fuel agnostic, meaning they can swiftly and aggressively integrate renewables into their energy mix as more renewable electrons are available on the grid. By replacing fossil fuel infrastructure with electric boilers, heat pumps, thermal batteries, and other clean technology, district energy systems can effectively decarbonize communities without retrofitting or installing new electrical infrastructure in individual buildings.

This sustainable pathway is a major strategic advantage for district energy over other energy options, especially when companies like Vicinity Energy are setting customers on a rapid pathway to decarbonization by 2050, when many emissions standards will be in effect.

3. What are my opportunity costs?

It is also important to consider the opportunity costs associated with your investment decision, such as the loss of potential gain by opting for an alternative.

For example, by spending capital on a new mechanical room, more budget is needed to invest in your core operations. For a hospital, this budget could be used for 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.

Depending upon the required capital cost for an energy infrastructure project, it’s important to consider the investments your organization forego that could better serve your customers or constituents.

Space is also associated with opportunity costs, particularly in cities where it is limited and expensive. Typically, mechanical rooms, large chiller or boiler plants, and cooling towers take up a considerable amount of space within urban buildings that could otherwise be used to drive income with amenities and parking.

4. Can you explain our energy usage patterns?

Once service begins, the potential to better understand your property’s energy usage is critical. Discovering when a space’s usage peaks and ebbs can help with budgeting and adjusting consumption habits accordingly.

Access to resources that track your energy consumption empowers tenants to identify patterns and areas for improved efficiency. Vicinity’s team can provide our customers with a monthly or yearly report that details their energy usage, including when it was highest and lowest.

5. Are your energy systems redundant?

Redundancy is a critical feature to look for in your energy provider. A redundant system is an electrical system designed to feature two or more of the same power supply. This means that if one power supply fails, the extra power supply will be able to take over the full operation of the system. Redundancy ensures that your energy supply remains uninterrupted and continues service even during an emergency.

District energy systems have built-in redundancies with numerous backup sources, equipment, and infrastructure. Because these systems operate at scale, district energy systems like Vicinity’s can eliminate the risk, headache, and expense associated with maintaining building mechanical rooms.

A district energy system’s ability to switch fuel allows Vicinity to be more reliable than other alternatives; as our systems transition to cleaner fuels, we will still have access to backup fuels if needed in an emergency.

6. What level of support do you provide regarding maintenance and equipment?

Operations and maintenance (O&M) for a facility or on-site energy system requires expertise in several cross-departmental fields and could require full-time staff or contractors to operate the system. You must check your local regulations to ensure you factor in the appropriate number of people with the right qualifications and licensing to meet your city’s requirements.

Owners must also account for ongoing maintenance, including parts replacements and future upgrades, to keep the system running optimally. Asking energy providers to demonstrate their level of support can help ensure your business will be spending only what is necessary in the future.

By outsourcing the management of energy infrastructure to Vicinity experts, our customers minimize their energy-related costs, maximize efficiencies, and devote more focus to their core mission.

An energy provider with expertise in O&M can help minimize operational risk for your organization, while maximizing infrastructure investments by keeping building energy systems working at peak performance for years to come.

7. What are your emergency procedures in case of power outages?

For buildings and tenants where operations are mission-critical, it is essential to prepare for natural disasters and power outages. Hospitals and life sciences laboratories, for example, need a reliable energy source to guarantee they can perform research and provide critical surgeries and life-saving procedures.

Whether it be a power outage, mechanical interruption, or extreme weather event, your energy provider should be able to detail their plan to resume service and ensure the safety of all parties involved.

For instance, district energy systems are incredibly resilient in the face of a service interruption. Due to their ability to isolate issues and utilize various fuel sources in an emergency, these systems can maintain extremely reliable service even in the most demanding weather events or emergencies. By design, district energy infrastructure comprises insulated carbon steel conduit piping encased in concrete, which will withstand flooding and other extreme weather.

Vicinity’s team undergoes regular safety training to ensure safety is a daily tenet of our day-to-day operations. Our employees are armed with the tools and resources needed to ensure work is always conducted safely and that emergency protocols are carried out in the face of a service interruption or safety hazard.

Making the right choice

Ultimately, the factors that lead to your energy infrastructure decision will be unique to your organization’s goals and circumstances. However, by posing these essential questions to energy providers, building owners can be empowered to make more informed purchasing decisions, save on costs, and contribute to a greener future.

District energy in a climate-uncertain future

Posted on December 3, 2023March 10, 2025 by Bella Pace

With climate change and its clear and present danger upon us, communities must act to embrace resilient energy infrastructure and prepare for a future in a very uncertain climate. Extreme weather events, like the unprecedented cold weather in the midwestern and southern regions of the United States in February 2021, and Superstorm Sandy in 2012, have devastated people living in these areas, presented major challenges to the nation’s energy systems, and driven resilience to the forefront of national conversation – not to mention the extensive financial response required to recover from these events.

While pursuing new energy technologies and solutions is critical to our eventual success as a society, we must balance this future-looking approach with an emphasis on strengthening existing infrastructure and cost-effectively protecting citizens and current energy networks. District energy is a proven energy delivery framework that is resilient, affordable, scalable, and already utilized by grids across the country. With underground carbon steel pipes, insulated and encased in concrete, and fed by central energy facilities, district energy is, by its very construction, extremely resilient. It has the added benefit of enabling a rapid shift to renewable sources and other green energy approaches. Based on these key attributes, district energy is a key component of the solution to our climate-uncertain challenges.

What we’re up against

Since the 1980s, there has been a significant increase in the number and severity of U.S. power outages due to extreme weather. February’s unprecedented winter outages in Texas are just the latest example. Millions of Texans were without power or heat when about half of Texas’s electricity generation was offline. As a result, fuel supplies were slowed by frozen natural gas lines, some towns had to turn off their water supply, and carbon-monoxide exposure skyrocketed when many Texans turned to home generators to keep the heat and lights on. Last year was a record-setting one for wildfires, with over 10 million acres burned nationwide, leading to $20 billion in costs and damages. A decade ago, in 2012, Hurricane Sandy left much of New York City without electricity for days, in addition to causing flooding that shut down power plants and fuel refineries. 117 people were killed, and 8.5 million Americans were without power.

In addition to severe disruptions of everyday life and threats to the health and welfare of residents, these events are costing Americans dearly. According to the National Oceanic and Atmospheric Administration, climate disasters have cost the United States over $1.875 trillion since 1980. The United States cannot afford to continue to operate such vulnerable utility infrastructure, especially as the situation continues to escalate. Americans are paying in tax dollars, and – more importantly – in lives, every moment that goes by without the prioritization of resilience in our nation’s energy infrastructure.

Many communities have already officially recognized the need to put energy resilience at the very center of civic planning. For example, in 2020, Maryland launched the Resilient Maryland Program to fund innovation around energy resilience and distributed energy resources. The Massachusetts Division of Capital Asset Management and Maintenance has a specific resilience program in place to protect key infrastructure from the effects of climate change. And last fall, the city of Philadelphia hired its first Chief Resilience Officer; someone whose entire mission is to ensure that the city’s resources can withstand the impacts of climate change.

How district energy models resilience now

While acknowledging the problem is certainly the key first step of progress, and research toward future improvements is more than necessary, what can communities do right now to protect citizens from the climate disasters that are sure to come at an increasing rate? One solution is district energy.

District energy uses a centrally located facility to generate thermal energy – heat, hot water, or chilled water – for a number of nearby buildings that form an “energy district.” Microgrids, such as can be found at colleges, hospitals, airports, and office parks, are examples of district energy arrangements. District energy offers multiple benefits to its users, including freedom from asset ownership and maintenance and corresponding costs, and price stability. Most important to this issue, however, is that district energy provides energy islanding capabilities that offer far greater resilience than broader-reaching conventional utilities.

For example, during Hurricane Sandy, Princeton University relied on its own microgrid, allowing the university to maintain power and resources while the rest of the city was offline. In fact, Princeton was able to offer emergency workers and the general public a place to warm up, charge their phones, and access the internet, since they were not reliant upon the town’s non-functioning energy supply.

How is district energy so resilient? One major factor is that the generation facilities are often located in urban centers, within or nearby to the grids they serve, as opposed to energy needing to be transported over hundreds of miles from a major power plant. These microgrids can then operate autonomously, even if those around them are without resources.

In addition to proximity, many district energy systems are able to ‘blackstart’ – that is, they can restore operations independently without relying on an external source to recover from a shutdown. Because of this ability to island and blackstart, some district energy systems have upwards of 99.99% reliability, making them desirable infrastructure in an increasingly climate-uncertain world. In fact, many major American military facilities, including Fort Bragg and Andrews Air Force Base, operate on district energy systems due to its superior energy resilience and security.

How district energy can contribute to a greener future

In addition to helping protect communities from devastating climate events right now, district energy can help pave the way to a greener future, in which global warming is addressed and the effects of climate change limited, to help reduce the number of climate-related disasters to begin with. Here are some key ways district energy helps reduce carbon footprints:

Reduces primary energy consumption for heating and cooling by up to 50%
Many district systems integrate Combined Heat and Power (CHP), which has an average efficiency of 75%, compared to 50% for traditional generation methods (significantly offsetting carbon emissions that would have been emitted through conventional means)
A diversity of buildings (such as commercial buildings with daytime use and residential buildings with more evening use) in a district can lead to waste energy sharing and load balancing
Central district energy facilities can be easily electrified. Once switched over to new renewable fuel sources and/or technologies, all buildings that are part of the district system will benefit from the carbon footprint reduction instantly, since they are all connected to the same generation facility

Fortunately, the world is catching on to these benefits. The United Nations launched the District Energy in Cities initiative to encourage urban centers to take advantage of the greening power of district energy to help reduce cities’ carbon footprints and thus their contributions to climate change. Campuses, hospitals, and research facilities around the country are already relying on district energy to both meet current energy security needs and to do their part in working toward a greener future.

It’s not always the case that the technology that can help us stay safe now is the same technology that can help us move systemically in the right direction. In the face of a danger as pressing and dire as climate change, we’re fortunate to have that present and future solution in district energy.

What is district energy?

Posted on November 15, 2023June 11, 2024 by Bella Pace

How district energy is helping commercial buildings and local communities

District energy uses local resources to tackle broad, global energy and environmental challenges. But what is it, exactly?

District energy uses a centrally located facility, or facilities, to generate thermal energy – heat, hot water or chilled water – for a number of nearby buildings that in effect form an “energy district.” These resources are transported through underground pipes to meet the needs of communities, cities, or campuses – such as colleges, hospitals, airports, or office parks. This provides multiple advantages:

Freedom from asset ownership and maintenance, including the costs associated with this
Energy pricing stability and cost effectiveness
More efficient energy delivery
Greater reliability and redundancy in energy supply
Reduced carbon footprint

The International District Energy Association created this great short video that provides a solid introduction to how and why district energy works so well:

Although district energy has an impressive history (did you know it was originally used to heat the baths of Ancient Rome?), it’s also a constantly evolving technology that uses innovative techniques, fuel sources and infrastructure to provide more efficient, resilient, and environmentally responsible energy than conventional generation sources. According to the United Nations Environment Programme, district energy systems “typically reduce primary energy demand in heating and cooling by 50%,” and can achieve operational efficiency of up to 90%.

District energy is cost-effective

So, is district heating better than onsite energy generation?

There’s a common misconception that onsite energy generation is cheaper than connecting to a district energy network. This faulty conclusion usually arises when the start-up costs of generating energy onsite and the ongoing operations and maintenance (O&M) expenses associated with onsite infrastructure are not considered.

Because district energy customers receive a finished thermal product, they don’t need to pay the millions in upfront capital costs for installation of chillers and/or boilers or the ongoing costs to maintain their own equipment. Onsite heating and cooling infrastructure can represent one of the largest startup costs for a new building and are repeat offenders when it comes to breakdowns that require pricey repairs. It’s important to conduct a lifecycle economic comparison between district energy and onsite generation when comparing the two.

By evaluating variable energy costs, recurring fixed operating costs and upfront capital costs, oftentimes, district energy is the optimal economic solution.

District energy also takes up much less space in a building than onsite generation would. On average, district energy connection infrastructure requires about the same amount of space as a parking spot, which means buildings can make smart, economic use of all the space they would have needed to dedicate to boilers, water towers, cooling systems, thermal storage, and more.

District energy is reliable

One thing that makes it so reliable is that district energy systems have built-in redundancy within its central plants and networks, meaning they can leverage multiple generating assets and fuel, power and water sources. If a piece of equipment or utility source is compromised or experiencing any issues, the system can continue to operate by drawing from its back-up sources and infrastructure. Compare that to what happens to a building’s operations if an issue occurs with an onsite boiler – no heat or hot water until it’s fixed. In fact, a building’s district energy service could eliminate the need for onsite N+1 redundancy.

As global climate and weather conditions become more extreme, the ability to ensure reliable energy even during severe conditions is a growing concern. Because many district energy grids can black-start (meaning they can restart without the aid of external electrical transmission) and can use a range of fuel sources, such systems can maintain a high level of energy uptime even during extreme weather events.

District energy is more reliable in terms of its components and delivery too. With insulated carbon steel conduit piping encased in concrete, a district energy network’s distribution system is more robust and resilient than conventional utility alternatives.

District energy is sustainable

With climate change in full force, every decision we make plays a critical role in healing the planet and minimizing our negative impact on the environment.

Energy production is responsible for a substantial portion of the greenhouse gases that trap the sun’s heat within the earth’s atmosphere. Fossil fuels, such as coal, oil, and gas stand out as the most predominant culprits for climate change, as they are responsible for over 75 percent of global greenhouse emissions and 90 percent of all carbon dioxide emissions. These numbers paint an urgent picture: everyone must play their part in cutting emissions in half by 2030 and reaching net-zero emissions by 2050.

Despite these concerns, a clean energy future is well within reach. The International Renewable Energy Agency (IRENA) estimates that around 90 percent of all decarbonization solutions in 2050 will involve harnessing green energy from renewable sources to improve energy efficiency and supply innovative electrification technologies.

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 be required by individual buildings using onsite generation, and the resulting carbon emissions. Furthermore, it allows for faster, more complete transitions to clean energy sources as they become available: district energy systems can employ renewable energy sources, like biofuels, wind, solar, and hydro, to produce carbon-free steam and maximize energy efficiency.

District systems and infrastructure can easily be updated to integrate new technologies and/or renewable fuels that benefit a great number of buildings in a geographic footprint. This allows for carbon footprint reductions at a scale that would be impossible to achieve on an individual basis.

As an example, Vicinity Energy delivers thermal energy to over 100 million square feet of space throughout Philadelphia. As the central plant in the district adopts cleaner, green energy approaches, the ripple effect is massive! For example, combined heat and power (CHP) is one technology that Vicinity has employed in several of its districts, including Philadelphia, to provide sustainable, efficient thermal energy to its customers.

Vicinity has also implemented the use of biogenic fuels in our operations. Otherwise wasted vegetable oil from restaurants is then collected and can be burned in our district energy systems as-is, resulting in huge energy and carbon savings. Other technologies include waste-to-energy, geothermal, and other sustainable distributed energy resources.

Check out what Vicinity Energy CEO Bill DiCroce had to say about biofuels and the next steps required to put them into action across district energy grids:

Bringing it all together, locally and globally

This shift to more efficient renewable fuels and the impacts that only district energy can achieve at such a large scale has brought considerable carbon reductions here in the US and the world over. For example, the city of Anshan in China is projected to reduce its use of coal, a heavy pollutant, by 1.2 million tons each year by combining separate networks into a district, and simultaneously capturing 1 gigawatt of heat wasted by a city steel plant.

Another example is Paris, which has utilized district energy for years to combat air pollution. Today, 50 percent of Paris’s social housing, all of its hospitals, and 50 percent of its public buildings are supplied by district energy. That’s the heat-demand equivalent of 500,000 households! Or look at London, which has a number of district heating projects underway, including the Lee Valley Heat Network, which will provide heat and hot water to over 5,000 homes by capturing waste heat from a nearby EcoPark.

Whether for reasons of price, reliability, efficiency, or to create more sustainable infrastructure for future generations, communities across America and the world are looking locally, joining together, and making a change for the better with district energy.

Preparing heating equipment for winter with preventive maintenance

Posted on November 1, 2023September 24, 2024 by Tricia Keegan

As the days grow shorter and temperatures drop, heating systems are finally turned on after a long period of disuse. This time of year signals the important task of evaluating a building’s energy system to ensure it is equipped to deliver heat efficiently and safely.

Building owners must establish a preventive maintenance program with their energy provider to maintain efficient energy delivery, avoid equipment failures, reduce energy costs, and ensure the long-term sustainability of a commercial property.

Why preventive maintenance is critical

The winter season is a key time to evaluate the equipment used in buildings connected to district energy systems. Taking preventive measures with a building’s heating equipment before the winter season and low temperatures begin in earnest can help to:

Improve equipment reliability and function
Reduce energy consumption, greenhouse gas emissions, and operational costs
Prevent unplanned costs, maintenance, and even system downtime
Enhance safety for employees and building occupants

How to prepare heating equipment for cold weather

Partnering with our customers, Vicinity’s team tailors our preventive maintenance approach to the unique needs of each building. Preventive maintenance activities can be done any time but are typically conducted in preparation for the winter and the summer to prepare for peak loads due to temperature changes.

Depending on the building’s system, our team can isolate a maintenance issue or conduct a small shutdown event to repair equipment. Ahead of low temperatures, buildings can also test their heating system during off hours or weekends to identify any problems with climate control or local area flow control.

However, several elements of district energy systems require inspection every year or more. Let’s dive into the most critical components buildings should focus on when preparing for the heating season.

Steam trap inspections

Steam traps collect condensate to prevent corrosion caused by built-up moisture and ensure that high-quality, dry steam flows through the steam system. Steam traps also block the escape of live steam, minimizing energy waste. Typically done between November and March, steam trap surveys help ensure the efficient delivery of district energy.

A Vicinity technician conducts the steam trap inspection using an ultrasonic digital detector. The process involves locating, identifying, tagging, and periodically testing the performance of the steam trap. If it is the first survey, the technician tags and catalogs each trap for future surveys.

Failed traps can allow large amounts of steam to pass through the equipment before giving up its thermal energy content. Failed traps can lead to water hammers, which damage the building’s system and produce undesirable noise.

Pressure Regulating Valves (PRVs)

Pressure regulating valves (PRVs) are designed to reduce incoming steam pressure to ensure safe steam distribution. While typically done in the summer, testing pressure regulating valves can be done at any time to prepare for the winter season.

Vicinity’s team will typically identify the PRV’s make, model, size, and serial number. They will then test the valve for leaks, clean orifices, test the gauging, and set it to the desired system pressure.

Testing PRVs is important because failed PRVs may cause system over-pressurization and relief valves to release steam into the atmosphere. The PRV can also improperly cycle open and closed, both oversupplying and then starving the downstream equipment of steam. The inspection will include inspecting the PRV operating mechanism (pneumatic, hydraulic, or motor operated).

Heat exchanger and water samples

A heat exchanger is a system that transfers heat between a source and a working fluid. District energy systems transfer heat from the hot water in the district heating system to the cold water in an individual building’s heating system.

To ensure that heat exchangers function properly, Vicinity’s team takes water samples from the heat exchanger and tests the water for conductivity. This test helps ensure that tube bundles are not leaking and that city water is not entering the system through such leaks.

Vicinity’s team also drains cooling tower heaters during cold weather. When temperatures are expected to be below 20 degrees F for an extended period, the cooling tower basin heaters are drained below the building roof level, the basin heater is turned off, and space heaters are turned on as applicable. Our team also works to adjust glycol or other antifreeze concentrations throughout the cooling system, as required.

Steam pipe

Before the winter season, it’s standard to visually inspect steam piping. Vicinity’s team typically checks for leaking joints, watermarks, insulation, and corrosion on the pipes.

This ensures safe, reliable steam delivery into the building and reduces the opportunity for steam to leak into the connected building.

Condensate return line

A visual inspection of the building’s condensate return line is done ahead of the winter season to check for leaks and corrosion. A condensate return system collects condensate from different points in the system and returns it to the boiler to save energy. This inspection involves checking the condensate pump seals for leaks and vent pipes for vapor emissions. Proper insulation and plugging penetrations is key to preventing freeze ups.

This inspection is done to avoid condensate water spills and ensure proper evacuation of condensate from system lines, allowing steam-operated equipment to function correctly. The test can also help identify any leaking steam traps in the system.

Mechanical room hot water loop

In the mechanical room of a building, Vicinity’s team inspects all piping, inlet/outlet temperatures, and pressures on heat exchangers and mechanical pumps.

This inspection confirms the adequate operation of key energy transfer equipment, such as heat exchangers, which supply building heat, hot water, and other process loads. The general condition and function testing of space heaters and heat tracing is important to note as well.

Winter preparedness checklist

Vicinity’s facilities take extensive measures to prepare for the winter weather before the month of November to make sure our teams are prepared for any extreme weather or cold-related emergency that comes up.

There are steps that every building should take, however, to ensure winter preparedness:

Designate a ‘weather watcher’ to monitor weather conditions.
Train your team on how to properly remove snow from roofs, roads, and equipment, staff according to needs.
Gather emergency supplies, including steam hoses for thawing frozen lines, portable heaters, antifreeze supplies for cooling systems, shovels, warm clothing and hand protection.
Keep all fire-protection-related equipment free of snow and ice for easy access.
Check wet and dry sprinkler systems and keep them clear of snow and ice.
Prepare snow removal equipment.
Make sure fixed and portable heaters are working and have appropriate fuel levels.
Ensure the building envelope is in good condition and close unnecessary openings like doors, windows, and piping penetrations.

Vicinity’s experts are here to help

Taking proactive steps to maintain your building’s energy systems can lead to significant benefits. From lower energy bills to a reduced carbon footprint, the effort invested in preparing your facility for winter pays off. Vicinity’s energy experts are here to help with all your energy needs. Give our energy experts a call to:

Work on repairs
Submit quotes before the coming heating season
Get help preparing your budgets for next year
Schedule a site visit to get preventive maintenance assessments from our team

eSteam™ and the cost-saving benefits of transitioning to clean energy

Posted on October 17, 2023February 10, 2025 by Bella Pace

Many cities across the United States are finding ways to combat climate change by setting ambitious decarbonization goals to reduce greenhouse gas emissions. Urban buildings are notorious for emitting significant carbon emissions into our atmosphere by using fossil fuels for heating and other energy uses. With the Federal government and various states implementing, drafting, and debating new laws, regulations, and programs to swiftly push the clean energy transition, now is the time to consider electrification and move away from natural gas.

Risks to consider with natural gas

While many buildings and homes around the world currently rely on natural gas for heating needs, there are several risks factors that are critical to consider when debating whether to remain on natural gas over cleaner fuel sources.

Operating costs and legislative risk

As we advance towards a low-carbon economy, the likelihood of carbon taxes becoming a roadblock for natural gas consumption is increasing. Building owners must plan for a future when carbon taxes are a reality and consider their choices today to avoid financial consequences in the coming years.

An additional risk building owners must consider is price unpredictability and the looming operating cost increases associated with using natural gas. This legislative uncertainty and price volatility make long-term energy planning difficult.

When buildings install natural gas equipment, they are locked in to using fossil fuels for 30 to 40 years, which is the average life span of the equipment. Given the current political landscape, however, it’s crucial to review all energy options to ensure that buildings can adapt as climate legislation is implemented over the next 5, 10, or even 30 years.

In addition to the future cost of a carbon tax, onsite mechanical plants require ongoing operation and maintenance. Often, this means bringing on full-time staff or contractors to run the system daily. Owners must check their local regulations to ensure they have factored in the appropriate number of staff with the right qualifications and licensing to meet the city’s operational requirements. They must also account for ongoing maintenance, including parts replacement and future upgrades, to keep the system running optimally.

Health and safety concerns

Fossil fuel-based heating systems, such as oil or natural gas furnaces, can contribute to indoor air pollution, which, according to the EPA, is often more dangerous than outdoor air pollutants due to high exposure levels. They release combustion byproducts such as carbon monoxide, which can negatively impact indoor air quality and overall health. As carbon consciousness grows among building tenants and investors, so does the demand for green energy solutions that address concerns about reducing carbon emissions in our atmosphere and preserving our natural resources, air quality, and overall health.

By implementing cost-effective and sustainable electrification solutions, building owners can lower carbon emissions, attract environmentally conscious tenants, improve marketability, and enhance the long-term value of their properties. However, electrifying an existing building can be challenging, expensive, and increase demand for an already overloaded grid network.

Making the switch to electrification

For many building owners, going through a large-scale retrofit project to install electric equipment and facing the increasing monthly cost of retail electricity can be daunting.

The good news is that alternatives are available to aid the transition away from natural gas, without retrofits or upfront capital investment.

Electrifying district energy leverages existing infrastructure to ensure access to reliable and environmentally friendly electrons.

Vicinity’s transition to electric boilers and industrial-scale heat pumps to generate carbon-free eSteam™ eliminates the costs associated with constructing new electric substations—costs that would otherwise be passed onto the ratepayers—and avoids the challenge of permitting and citing new electric infrastructure, especially when gaining public support in urban neighborhoods.

Vicinity’s access to transmission-level electricity rates helps overcome financial barriers associated with installing electrification technologies and is more effective and less disruptive than onsite alternatives like built-in electric boilers. eSteam™ is an invaluable tool for cities and building owners aiming to meet sustainability targets, comply with carbon ordinances, and fulfill tenants’ increasing demands for sustainability.

Understanding eSteam™

By opting for eSteam™, building owners can improve their energy efficiency, reduce their carbon footprint, and prioritize the health and safety of tenants—all while keeping their budgets on track. By installing electric boilers and heat pumps in its large central facilities, purchasing power from the grid at transmission-level rates, and harnessing the energy from rivers, Vicinity can offer all the benefits of the district energy service our customers count on without compromising reliability.

eSteam™ affordability

Our primary goal is to make eSteam™ accessible and affordable for our customers. Affordability is a cornerstone in Vicinity’s electrification plan, ensuring that the transition to carbon-free solutions remains as cost-effective as possible. We make eSteam™ affordable by utilizing our large systems, existing infrastructure, and access to transmission-level rates to help our customers achieve their sustainability goals.

Further, our energy experts are skilled in procurement and equipment dispatch, which allows us to aggregate large loads and operate our equipment optimally to achieve the highest efficiencies at the lowest cost. Vicinity employs two essential strategies:

“Valley” hunting: We can aggregate the load of our customer base and purchase energy when it is the least expensive. In the future, we will install thermal storage so we can purchase power when it is least expensive, produce eSteam™, store it, and distribute the stored steam when our customers need it.
Optimal equipment dispatch: With our team’s extensive operational experience, we can flexibly adapt and dispatch our generating assets to most optimally serve customers. When affordable renewable energy is accessible, we will procure electricity to produce eSteam™. However, when renewable energy becomes scarce or expensive, we can quickly switch to alternative steam-generating equipment to maintain uninterrupted operations and keep costs low.

Through these operational approaches, we are dedicated to delivering the best possible outcomes for our customers without compromise.

Top considerations for building owners evaluating variable refrigerant flow (VRF) systems

Posted on September 13, 2023April 2, 2024 by Nate Paist

When considering the use of Variable Refrigerant Flow (VRF) systems, building owners should consider certain important factors that could lead to increased costs and concerns with energy efficiency and reliability.

Top considerations before installing VRF systems

VRF systems are a rapidly evolving solution and offer many appealing promises to building owners and property managers hoping to complete their projects without hiccups or large capital investments.

However, when looking past the initial benefits of VRF technology, it’s clear that there are some critical considerations to address before investing in these systems.

1. Maintenance and installation

While VRF systems are typically less expensive to install than chillers and boilers (hydronic systems), they require specialized training and maintenance expertise. VRF systems were introduced in Japan in the 1980s, but they are relatively new to the U.S., where it took 25 years to embrace this technology. Today, VRF systems command only 5% of the total heating and cooling market.

Because these refrigerant-based systems comprise several complex pieces of equipment, they are best served by technicians familiar with the best practices for VRF systems. Unlike hydronic systems, all parts for a VRF system are proprietary and made by a single manufacturer. Single sourcing provides the opportunity for many issues. First, the cost is dictated by a sole source manufacturer with no competition, so the aftermarket parts can be very costly. Second, supply chain issues can lead to problems in procuring alternative parts.

For today’s building owners opting for VRFs, qualified HVAC technicians will have to be kept onsite or hired to operate and perform preventative maintenance and repairs. As experts note, great care must be taken during installation to prevent moisture, dust, and contaminants from entering the refrigerant piping, and it must be installed tightly to prevent leaks. Improper installations run the risk of harmful leaks or premature equipment failures.

Unlike a chiller, which centrally locates refrigerant, VRF has many refrigerant lines running throughout a building. With a high volume of refrigerant lines and fittings, VRF systems have a higher probability of leaks, which are challenging to locate and repair. Furthering the issue, refrigerant lines are installed over occupied spaces; therefore, the refrigerant leaks into areas with occupants.

It’s important to prepare for ongoing maintenance costs, including regular inspections, filter replacements, and system cleaning when opting for VRFs. Alternative energy solutions, such as district energy, pose less of a concern regarding maintenance because energy generation is done offsite at a central facility and performed by the energy provider.

Risks associated with VRFs and onsite chillers, like potential refrigerant leaks, are eliminated and shifted to the central district energy facility, which is regulated and has strict safety standards to ensure staff and surrounding communities are safe. Further, maintenance is handled by district energy experts, meaning that building owners do not need to expend additional labor costs.

2. Electricity reliance

Electricity reliance should also be considered when thinking about installing VRF systems today. VRF systems require electricity to run, exposing buildings to multiple risks that are exacerbated in locations that experience high humidity and low temperatures.

Why? VRFs typically have to work harder than other heating and cooling systems. The compressors used in VRF systems are installed in a complex field refrigerant system and are forced to absorb outside air in heating mode. Air-source heat pumps can be more efficient, but rapidly lose efficiency, as the outside temperature drops below 40 degrees and require a backup heating source in cold climates like the Northeast. The compressor also spins faster when heating, reducing the life span of the bearings and compressor.

VRF systems are particularly unsuitable for certain buildings that have high energy and reliability needs or strict humidity control considerations, such as healthcare and life science labs. Should there be a power outage during a storm, the building cannot provide heating and cooling functions. This setback could endanger occupants and damage building assets and lab experiments. In buildings where indoor air quality (IAQ) is a concern, VRF systems would require increased emergency or standby generation capacity.

Electricity reliance also means that buildings are exposed to volatile electricity rates and the policy changes that may drive rates up, especially in cities like Baltimore and Philadelphia, where the electric grid’s capacity is struggling to meet demands.

Many buildings today are billed based on peak electricity usage rates, their usage during the hottest and coldest days of the year. VRFs can drive up peak demand and costs dramatically.

With VRFs, additional costs are incurred when building owners seek to retrofit older spaces. Owners need to consider the amount of electricity necessary for the older buildings because they typically do not have the required capacity and may require expensive upgrades.

Due to the unpredictable nature of retrofitting older buildings, district energy is appealing to owners that are looking to electrify but want to keep variable loads for heating or cooling low, creating a flat load profile with lower demand charges.

With a blend of hedging and market commodity prices, district energy solutions are able to guard against unexpected price spikes in the market and hedge fuel prices for a significant portion of our expected steam load for the heating season. Through these thoughtful hedging strategies, Vicinity’s customers experience more stable rates and greater budget certainty while achieving their sustainability goals.

3. Energy efficiency considerations

While VRFs are generally lauded for their high efficiency, their performance can vary depending on several factors. For example, some building owners have yet to be satisfied with the performance of their VRF systems when temperatures drop below 40 degrees.

Ultimately, certain factors influence whether a VRF system delivers the efficiency rates it promises:

System design
Installation of equipment
Outdoor temperatures
Original building design
Application of equipment
Ongoing maintenance of the building and VRF equipment

If installed incorrectly or improperly maintained, VRF systems will likely malfunction, causing a major disruption to building tenants. A study even found that VRF systems required replacement a decade earlier than other HVAC systems, which is why they are widely regarded as ‘throwaway’ systems.

Disposing of defective VRF equipment and replacing it altogether rather than repairing it is common practice. This practice can lead to a lapse in service, resulting in the wasteful disposal of mechanical equipment.

To avoid interrupted service, building owners should evaluate their potential VRF system’s energy efficiency ratings, seasonal performance, and the potential for energy savings in their specific building before making a purchase decision.

4. Capital costs

The average lifespan of a compressor is about 10 to 15 years, and the overall VRF system is life 15 to 20 years. Once the VRF system has reached the end of its useful life, the entire building’s HVAC system needs to be replaced. Even the refrigerant piping throughout the building is replaced, due to the changing requirements of new refrigerants.

A study done by the Washington State University estimated that the installed cost of a VRF system is approximately $18 per square foot served – compared with a code-minimum system cost of about $12 to $15 per square foot, a price difference that compounds quickly over the scale of an entire building.

Due to ever-more stringent indoor air quality requirements, specialized central air handlers, called dedicated outdoor air units, still require ductwork for each occupied space.

5. Building infrastructure requirements and risks

Infrastructure requirements for VRFs are critical for building owners to consider, especially when looking to avoid additional capital costs. These systems require specific infrastructure considerations, such as dedicated space for outdoor units, indoor unit placement, and appropriate refrigerant piping routes.

Owners should evaluate whether their building can accommodate these requirements without significant modifications or additional expenses. VRF systems are not ideal for use in high-rise buildings because the maximum allowable vertical distance between an outdoor unit and its farthest indoor unit is approximately 150 ft., and the maximum vertical distance between two individual indoor units is about 45 ft., meaning that valuable space on multiple floors is occupied by VRF equipment.

VRF systems are also typically housed on rooftops, precluding that space from being used for amenities like lounges, gardens, or rooftop pools, and require several roof penetrations, which can expose building envelopes to structural issues and potential leaks.

In comparison, district energy only requires about a parking space worth of equipment, typically in the basement of a building, and allows owners to maximize rooftop and basement spaces.

6. Use of refrigerants

Refrigerant-based systems like VRFs expose buildings to safety and financial risks, whether it be requiring specialized maintenance for repairs, or susceptibility to leaks that are potentially harmful to building occupants and the environment.

VRF refrigerants are flammable due to their base of propane and butane. The flammability of some refrigerants such as R32 is becoming a safety concern due to the high amount of refrigerant that is piped throughout a building within VRF systems, and their high potential for leaks. For this reason, building standards such as ASHRAE Standard 34-2019 have been established to limit the concentration of refrigerants within occupied spaces. Regulations on refrigerants are often changing. As regulations change, systems will require significant modifications or total replacement to be compatible with new refrigerants.

VRF system leaks are caused by several factors — one is chemical corrosion. The production of condensation and the use of chlorine in VRF pipe insulation can cause chemical corrosion of aluminum piping in the system. Holes in the aluminum piping can allow refrigerant to leak and cause the systems to stop performing and ultimately fail.

Making the best choice for commercial buildings

When planning for heating and cooling needs, building owners should consider all options and identify the best choice for reducing risk and ongoing capital investments. Below is a list of questions to help building owners and operators make the best choice for their buildings:

Life-cycle cost: What are the installation and ongoing costs associated with the VRF equipment or provider?
Maintenance: What maintenance is typically required for the VRF system? Does the VRF provider include service from specialized technicians?
Service life: How long does the VRF equipment typically last?
Regulatory compliance: What does the current regulatory landscape look like for VRF systems and their use of refrigerants?
Rooftop penetration: Can this building accommodate the rooftop penetration required by the VRF equipment?
Reliability: How critical are the building’s daily operations? Do they rely on uninterrupted energy to maintain strict indoor air quality (IAQ) standards?

Our history and future: Vicinity Energy in Kendall Square

Posted on August 22, 2023June 26, 2024 by Don Silvia

Kendall Square in Cambridge, Massachusetts, has undergone many changes since the 1800s. Once a heavily industrial area, Kendall is now home to the world’s leading biotech and research facilities.

The Boston Woven Hose and Rubber Company—an organization that produced fire hoses, ink stamps, and ink, along with the candy manufacturers along Main Street—was one of the first customers served by Vicinity’s original Kendall Square facility. The main steam line that runs from Kendall Station through Kendall Square was installed to feed that hose and rubber company.

In the sixties, these industrial companies gave way to new technology. For example, the Polaroid Corporation was founded right here in Cambridge by Edwin Land and George W. Wheelwright III in 1937.

At this point, the invention of the Polaroid camera was groundbreaking. The company built an empire from that idea, and employed research and university graduates to build it. In the 1980s, with the advent of digital photography, the company all but evaporated. However, biotech later reinvented the area using the same model and university brain power to find cures for chronic illnesses. Today, Edwin H. Land Blvd, named after the inventor of the Polaroid camera, runs behind our Kendall Square facility, honoring his legacy.

At the end of the line is a company called Cambridge Brands, the only place in the world that makes Junior Mints! The factory produces 15 million Junior Mints a day.

Visitors to Kendall Square often have trouble believing that an operating energy facility is in the area. This neighborhood looked drastically different when our facility was built in the 1940s. Today, a fully functional city has sprouted around our facility with lively restaurants, farmers’ markets, kayak renting, and more.

As Kendall Square has evolved, our facility and reliable steam services have remained constant. While some processes and fuels have changed, Vicinity’s system has provided thermal energy to Boston and Cambridge for almost 100 years. Despite our old roots, Vicinity’s mission is at the forefront of decarbonizing both Cambridge and Boston. Leveraging existing infrastructure, our facility is the most viable means to quickly and effectively decarbonize the buildings we serve in a timely and efficient manner.

Facility history

Vicinity’s Cambridge location is currently home to three facilities, with the original facility being a yellow brick building built in 1948 by the Cambridge Electric Light Company. This building contained three 1300 PSI power boilers and was constructed as a coal-fired Rankine cycle facility, meaning the power boilers drove over condensing turbines. The facility also contained three 25 MW Westinghouse Steam Turbines and used the river for cooling as part of its original design. The main steam line runs from Kendall Station through Kendall Square and was installed to feed the Boston Woven Hose and Rubber Company.

When the combustion turbine was put in, they needed to bridge the two systems to make a combined cycle plant. Today, all of our systems are tied together, so steam, electricity, condensate, and all auxiliaries are now shared between the two plants.

In 1900, coal was primarily used as an energy source, so the facility was designed to burn coal, but that luckily lasted only a short time. The coal was gradually converted to heavy oils and then into natural gas. Today, we use the efficient combined heat and power (CHP) process to generate heat and electricity simultaneously.

A unique feature of district energy is that it is fuel agnostic, which allows these systems to utilize any fuel source to generate steam. Over the years, our facilities have pivoted as more sustainable fuel sources have become available, and we are continuing the legacy of prioritizing cleaner energy.

Energy goes out through two different steam lines within our facility. One is over the Longfellow Bridge. Anyone who has seen a movie filmed in Boston has likely noticed an iconic shot of this bridge.

The second steam line comes out of the plant and goes past the Cambridge Parkway, the Museum of Science, and further into the city of Boston.

The canal behind our facility was once used for commerce, running all the way up into the city. Barges would come up through the canal to deliver coal, oil, and other goods into the city of Cambridge. With the decline of coal-powered energy, the canal was truncated and is now appreciated by residents and tourists who use the water for recreational activities such as canoeing and kayaking.

When our facility was built, the city required a boardwalk for pedestrians and public use. We maintain the boardwalk to this day, and the public frequently enjoys it.

JFK & NASA

A fun fact about our Kendall facility is its connection to John F. Kennedy (JFK) and NASA. In the early 1960s, JFK, originally from Cambridge, set the ambitious goal of going to the moon. He famously stated, “We choose to go to the moon in this decade and do the other things, not because they are easy, but because they are hard.”

And so, to achieve his goal, he needed to develop a space authority known today as NASA. In 1964, Kendall Square became home to NASA’s Electronics Research Center (ERC) to support NASA’s electronics research during the Apollo era and served as a graduate and post-graduate training center.

The ERC needed power, and our Kendall facility was the perfect location to house all the materials necessary to accommodate NASA’s Kendall Square operations.

Vicinity aquires Kendall Station

In 2013, the Lechmere Viaduct Steam Line doubled its green steam capacity to serve Boston, making Kendall Station’s combined heat and power the main source of thermal district energy in the city. The following year, Vicinity officially acquired Kendall Station with partner I-Squared and began investing in the system’s longevity and reliability for customers.

Vicinity has since remained committed to improving the facility to meet the growing needs of Boston and Cambridge while opting to use the greenest technologies available. From 2015 to 2018, Vicinity upgraded the water treatment system, converted the system to dual fuel, and installed a new back-pressure steam turbine and an air-cooled condenser to eliminate heat discharge to the river. We made an $8 million investment to double the plant’s water makeup capacity and installed a system to utilize 100% Charles River water for purification purposes.

Vicinity additionally replaced the air intake system for the GE 7FA Gas Turbine and upgraded the turbine to the latest technology to maximize efficiency. In 2021, Vicinity implemented biogenic fuels derived from waste vegetable oil and fats discarded by the food service industry. Biofuels are significantly cleaner than gasoline and fully biodegradable, so this change resulted in fewer greenhouse gas emissions and improved local air and water quality.

Vicinity’s recent clean energy strides at Kendall

Most recently, Vicinity has been researching, sourcing, purchasing, and installing an electric boiler in the main turbine hall. Vicinity will gradually transition away from its cogeneration turbine by installing electric boilers and heat pumps at the Kendall facility. Furthermore, Vicinity plans to purchase wholesale renewable power to generate and distribute eSteam™, a carbon-free renewable thermal energy product, to customers.

On April 5, 2023, Vicinity Energy announced its partnership with Augsburg, Germany-based MAN Energy Solutions to collaborate in developing low-temperature source heat pump systems for steam generation. Vicinity plans to install an industrial-scale heat pump complex at Kendall by 2026. Once constructed, Vicinity’s heat pump complex will be the largest in Massachusetts.

Vicinity’s first heat pump complex, which draws from proven examples in Europe, will be powered by renewable electricity to safely and efficiently harvest energy from the Charles River, returning it at a lower temperature. Because the heating sector accounts for 30-40 percent of global CO2 emissions, the global energy transition can only succeed with considerable strides to decarbonize heat. Instead of burning fossil fuels for heating purposes, water-source heat pumps use heat sources, such as lakes, rivers, or the ocean, efficiently.

Vicinity follows the example of a few cutting-edge European cities, such as Glasgow, Scotland, and Drammen, Norway. In 2021, the first water-sourced heat pump opened in Glasgow, allowing them to tap into the River Clyde, just as Vicinity will do with the Charles River.

Our history and future: Vicinity Energy in Kansas City

Posted on May 15, 2023May 13, 2024 by Luke Thibault

Today, the Kansas City Grand Avenue district steam and chilled water plant serves thermal energy to 8.5 million square feet of downtown Kansas City buildings for their heating and cooling needs.

In 1900, the Metropolitan Street Railway Company purchased the Kansas City Electric Light Company and began building the Missouri River Power Station. Completed in 1904 and dubbed “The Big Plant”, it was reported to be the largest electric generation station outside of New York City. The plant was built for $2.5 million, equivalent to $85 million today.

The combination of a streetcar and lighting company was a natural marriage for investors at the time, as streetcars operated during the daytime and the lighting was used for nighttime streetlights, which allowed the plant to generate revenue 24 hours a day.

At the same time, the Kansas City Heating Company was formed by the electric company stakeholders, which built steam plants in the downtown area to meet the needs of a growing central business district. By 1917, three central steam plants were heating downtown businesses. The plants were located at 6th and Baltimore, 1312 Baltimore, and 1311 Wyandotte.

As the uses for electricity grew and the streetcar gave way to automobiles, in 1927 Kansas City Power and Light Company (KCPL) bought the Missouri River Power Station from the financially strapped Street Railway Company. The plant was renamed the Grand Avenue Plant, and KCPL converted the plant from 25 cycle to 60 cycle power.

Thus, the Grand Avenue Plant became the primary electrical producer for downtown Kansas City. From 1928 to 1957, KCPL began consolidating steam production to the Grand Avenue Plant through the installation of high-pressure steam mains that connected the plant to McGee and Wyandotte Streets.

Today, 3 of the 4 boilers in service are combustion engineering ceiling hung, built-in-place style boilers that are designed to accept multiple fuel types. The large steel structure of the Grand Avenue Plant is designed to accommodate the weight of the 6-story tall boilers, which can produce 350,000 lbs./hr, and grow 6 to 7 inches when heated. The 4th boiler in service today is a packaged boiler that was installed in 1967, which has a capacity of 200,000 lbs./hr.

A growing history

In 1989, KCPL sold the steam production at Grand Avenue and the downtown steam distribution network to Trigen, whose primary focus was district energy. KCPL kept the steam turbine electric generators and bought steam from Trigen to produce electricity until 2001, when the turbines were retired. In 1998, Trigen completed a chilled water production facility at the Grand Avenue plant and distribution piping down McGee Street that would serve the City, County, and Federal buildings. The chilled water system began adding more customers on the east side of downtown KC such as the T-Mobile Center and Oak Tower.

Kansas City Grand Avenue Station chillers

In 2019, a 6,000 ft. chilled water lateral was completed down Wyandotte Street to serve the west side of downtown KC, with an anchor customer of the Lowes Hotel. This lateral has also begun serving the Convention Center, Flashcube apartments, Hotel Phillips, and 114 W. 11th Street downtown.

Today, additional buildings connected to the Vicinity system include: T-Mobile Center, 909 Walnut Apartments, Lowes Hotel, the Marriott Hotel, City Hall, the Kansas City Library, and the Lifted Spirits Distillery.

Fuel switching, efficiency, and decarbonization

District energy systems have shown great flexibility in fuel switching to help reduce both cost and carbon emissions. In 2017 to 2018, the Grand Avenue plant converted from coal to natural gas, which has collectively reduced greenhouse gas emissions in Kansas City by 33,000 tons, the equivalent of removing 7,100 cars from the road each year.

Today, the Grand Avenue plant uses a highly efficient process called combined heat and power (CHP), which uses both the heat and pressure of energy generation to achieve efficiencies from 70-80% as opposed to conventional generation. In comparison, conventional power generation from gas or steam turbines can only achieve around 30-40% efficiency.

The Grand Avenue Plant is uniquely positioned for the next fuel switch of electrification to achieve zero net carbon emissions. With access to the Missouri River to be utilized by an industrial steam generating heat pump complex, and proximity to transmission-level power for lower cost electricity, electrification will be achieved at a lower cost and greater reliability for Vicinity’s Kansas City customers.

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.