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CHP vs. onsite power generation: How combined heat and power enables a low‑carbon future

Posted on October 8, 2024July 1, 2026 by Bella Pace

Combined heat and power (CHP), also referred to as cogeneration, has been quietly providing highly efficient electricity and process heat to vital industries for decades. Cogeneration is a proven, cost-effective tool for reducing emissions and furthering sustainability goals.

What is a CHP system?

CHP, or cogeneration, is the simultaneous production of electricity or power and thermal energy from a centralized source of energy.

CHP combines the production of thermal energy, used for both heating and cooling, and electricity in one process.

Key facts about CHP systems:

CHP systems can be located at an individual facility, building, or campus. They can also be combined with district energy or utility resource.
CHP systems usually consist of a few key components: a heat engine, generator, heat recovery, and electrical interconnection, which are configured into an integrated whole.
CHP is typically employed where there is a need for both electricity and thermal energy.
All CHP systems involve recovering otherwise-wasted thermal energy to produce useful thermal energy or electricity.
As a result, CHP systems require less fuel to produce the same energy output as conventional systems, emitting fewer greenhouse gases and air pollutants.

How do CHP systems compare to separate heat and power (SHP) systems?

Although CHP is used in over 4,400 facilities across the U.S., many operations are still powered with conventional, onsite separate heat and power (SHP) systems.

Unlike CHP, SHP systems are not integrated, meaning they obtain fuel from several sources, such as central fossil-fueled power plants and onsite natural gas heating systems.

To get the complete picture of how CHP compares to SHP, let’s dive into the facts across a few key areas of focus.

Is CHP energy efficient?

The average efficiency of fossil-fueled power plants in the U.S. is 36%. This means that 64% of the energy used to produce electricity at most power plants in the U.S. is wasted in the form of heat discharged into the atmosphere.

Overall, SHP is 50–55% fuel-efficient. Alternatively, CHP systems typically achieve total system efficiencies of 65-80%, by recovering and using the otherwise-wasted heat from on-site electricity production.

How CHP systems compare to SHP systems

Can CHP systems drive cost savings?

According to the U.S. Department of Energy and the EPA, installing 40 GW of new CHP capacity would save U.S. businesses and industries $10 billion each year in energy costs. These agencies estimate that such an investment would cost about $40 to $80 billion and could pay for itself within four to eight years.

CHP systems also reduce energy bills because of their high efficiency. Recurring costs are further reduced because the CHP output reduces the need for electricity purchases.

How sustainable are CHP systems?

Because CHP systems require less fuel to produce the same energy output as SHP systems, CHP can reduce emissions of greenhouse gases and air pollutants such as nitrogen oxides (NOx) and sulfur dioxide (SO2).

A CHP system can operate on various fuel types, such as natural gas, biogas, biomass, and more sustainable alternatives as they become widely available. The emissions prevented by a single 5MW CHP system are equivalent to the annual emissions of more than 5,400 passenger vehicles.

This diagram from the EPA illustrates the CO2 emissions output from electricity and practical thermal energy generation for two systems: (1) a fossil-fuel-fired power plant and a natural gas-fired boiler and (2) a 1 MW reciprocating engine CHP system powered by natural gas.

What is the growth potential for CHP systems?

There is enormous growth potential for the CHP market: Global Market Insights forecasts revenue generation within the market to increase from $20 billion in 2016 to over $45 billion by the end of 2024.

Investing in CHP systems can also help stimulate local, state, and regional economies through job creation and market development. Demand for raw materials and construction, installation, and maintenance services can create green jobs and develop markets for future sustainable technologies.

The potential capacity for CHP also cannot be understated: a U.S. Department of Energy study identified nearly 14GW of additional technical potential for CHP across more than 5,000 U.S. colleges and universities alone.

Forecast of potential CHP capacity additions through 2026

How reliable are CHP systems?

CHP systems are more efficient and more resilient, and reliable than conventional methods, especially when configured as part of an advanced microgrid. These systems can be designed to operate independently from the electric grid to enhance facility reliability.

Through the onsite generation and improved reliability, facilities can continue operating in the event of a disaster or an interruption of grid-supplied electricity.

CHP enables a low‑carbon future

Major U.S. cities like Boston, Cambridge, and Philadelphia are already reaping the benefits of CHP. CHP is integrated with local district energy networks in these communities, delivering low-carbon thermal energy to buildings and campuses across the cities’ urban core.

By leveraging existing district energy infrastructure and CHP, these cities are leading the way in America’s adoption of this powerful technology and forging ahead towards a zero-carbon future.

Charging ahead: Vicinity’s decarbonization pathway through electrification

Posted on September 16, 2024November 27, 2024 by Scott McBurney

Mitigating carbon in the U.S.’s production and distribution of energy is now just as critically important as society’s ever-growing need for energy. The federal government, states, and local municipalities are implementing, drafting, and debating new laws, regulations, and programs to swiftly push the clean energy transition and decarbonization.

Commercial buildings represent the highest source of carbon emissions in major cities, making them one of the most critical targets in urban decarbonization. New York City’s Local Law 97 was the first to set restrictions around carbon emissions on existing and new buildings—with Boston following close behind with Building Emissions Reduction and Disclosure Ordinance (BERDO) 2.0.  As communities strive to lessen the impacts of climate change and building owners look to comply with these evolving mandates, it’s clear that resilient, reliable, and agile energy solutions are needed for a more sustainable future.

The first district energy electrification strategy in the U.S.

One of the most valuable assets in achieving aggressive decarbonization targets is district energy, a network of underground pipes that delivers thermal energy and chilled water to buildings in urban communities. Because district energy systems are agile, flexible, and agnostic to fuel sources, they are essential tools to decarbonize communities at scale. As clean energy technology evolves and more renewable sources become available, Vicinity is quickly adapting to emerging trends to eliminate carbon from operations at central facilities in 12 cities across the country.

In 2020, Vicinity pledged to achieve net zero carbon emissions across its operations by 2050. As Vicinity delivers steam for heating, cooling, and sterilization to customers ranging from state-of-the-art life sciences research facilities to Class A commercial office space, the company remains committed to providing reliable and affordable products to help customers eliminate carbon emissions.

How Vicinity is getting there

The backbone of Vicinity’s decarbonization plan is the electrification of its operations by utilizing a combination of existing infrastructure and implementing new, innovative technologies at Vicinity’s central facilities.

Like district energy systems in Canada and Europe, Vicinity will import carbon-free electrons through co-located substations to power electric boilers and industrial-scale heat pumps. These technologies with thermal storage will deliver safe, clean, and reliable carbon-free steam, known as eSteam^TM, for heating, cooling, sterilization, humidification, and other thermal energy needs.

While the technologies will vary at each of Vicinity’s central thermal energy facilities, below is a quick snapshot of the overall electrification strategy:

- Biogenic fuel: A truly circular solution, Vicinity uses the waste cooking oil discarded by the local food service industry to generate steam. Vicinity has replaced heating oil with LR100, a biogenic fuel derived from waste vegetable oil. Benefits include significantly reducing greenhouse gas emissions by over 80% compared to distillate fuel and improving local air quality by reducing nitrogen oxides, sulfur oxides, and particulate emissions.
- Heat pumps: Vicinity is partnering with a Germany-based energy provider to develop a low-temperature water-source heat pump system for carbon-free eSteam^TM generation. These plans are already in motion as Vicinity looks ahead to 2028 when the Kendall facility in Cambridge will be home to Massachusetts’s largest planned industrial-scale heat pump complex. Installation at other locations in Philadelphia and Kansas City will follow.
- Electric boilers: Leveraging existing infrastructure and access to a lower-cost, transmission-level electrical supply, Vicinity will consume renewable power from the grid and import it to its facility through the co-located substation to produce carbon-free eSteam^TM.
- Thermal storage: To lower our customers’ average cost of renewable thermal energy, thermal storage will provide on-demand eSteam^TMproduction from stored, off-peak renewable electricity.

What this means for Vicinity’s district energy customers and communities

Vicinity’s decarbonization journey enables buildings to transition to clean energy sources at scale and seamlessly achieve carbon reductions without any additional capital needed. As federal, state, and city officials enact building performance standards to reduce existing and new buildings’ carbon footprint, Vicinity continues to invest in infrastructure at central facilities. It enables customers to comply with these evolving standards. Vicinity’s eSteam^TMsets customers on a rapid pathway to decarbonize by 2050 and achieve their ambitious ESG initiatives. With eSteam^TM, Vicinity’s valued customers, like IQHQ, can provide resilient and responsible spaces to positively impact their building occupants and the surrounding community.

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.

Heat pumps and district energy: Driving building decarbonization for a sustainable future

Posted on May 30, 2024November 25, 2025 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 Jeannie Morris

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

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.