Vicinity Energy Executive Chairman Bill DiCroce on Boston Public Radio

Boston Public Radio in conversation with Vicinity Energy’s Bill DiCroce

Hosted by WGBH | October 3, 2024

On the WGBH Boston Public Radio show, Vicinity Energy’s Executive Chairman Bill DiCroce joined the President of the Alliance for Climate Transition Joe Curtatone on the radio to discuss how Vicinity is combating the climate crisis by electrifying our district energy systems, and why more businesses need to take action now.

About Boston Public Radio

Hosts Jim Braude and Margery Eagan facilitate smart local conversation with leaders and thinkers shaping Boston and New England. Listen to the full episode here.

The Boston Globe Climate Club Explores: Climate Innovation

Vicinity Energy’s CEO Kevin Hagerty took part in an Energy Innovations panel, hosted by The Boston Globe and presented by the Museum of Science. The panel explored the past, present, and future of energy innovations, including what has shaped the current landscape and the groundbreaking advancements that are driving us toward a sustainable future. Climate reporter Sabrina Shankman moderated the dynamic conversation between Kevin and the Executive Director of HEETlabs, Audrey Schulman, and the Chief Technology Officer of Innovation at Schneider Electric, Scott Harden.

Oklahoma State University medical campus to use Vicinity Energy district energy system

Charging ahead: Vicinity’s decarbonization pathway through electrification

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 eSteamTM, 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 eSteamTM 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 eSteamTM.
    • Thermal storage: Vicinity will procure renewable electricity when available and costs are lower (typically overnight for offshore wind) to generate eSteamTM and store it for when demand is high, dramatically lowering customers’ average cost of renewable thermal energy.

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 eSteamTM sets customers on a rapid pathway to decarbonize by 2050 and achieve their ambitious ESG initiatives. With eSteamTM, Vicinity’s valued customers, like IQHQ, can provide resilient and responsible spaces to positively impact their building occupants and the surrounding community.

Oklahoma State University Partners with Vicinity Energy for Sustainable District Energy

Tulsa, September 5, 2024—Vicinity Energy, a leader in decarbonization with the nation’s largest portfolio of district energy systems, has partnered with Oklahoma State University (OSU) to provide chilled water and steam service to a new medical campus. This project will combine multiple existing buildings into a state-of-the-art hospital. Vicinity will serve the entire 58-bed medical-surgical inpatient hospital for Oklahoma veterans, totaling over 275,000 square feet of building space.  

The medical campus will use steam and chilled water for space heating and cooling, domestic hot water, and direct steam humidification. By choosing district energy, the campus will reduce the emissions associated with its onsite operations. 

Nearly 100% of the condensate water will be returned and reused at Vicinity’s facility. This sustainable practice conserves water and enhances the system’s overall efficiency, aligning with Vicinity’s commitment to a clean energy future. 

By utilizing district energy, the medical campus will experience enhanced reliability, better redundancy, and greater energy efficiency compared to operating onsite equipment.  This ensures a stable and efficient energy supply, which is crucial for the continuous and reliable operation of the medical facility. 

“This partnership reflects our dedication to operational excellence,” said Dr. Johnny Stephens, president of Oklahoma State University Center for Health Sciences. “By integrating Vicinity’s district energy solutions, we are not only minimizing our carbon footprint but also enhancing the reliability and efficiency of our medical facilities. This collaboration ensures that we provide our veterans with a safe and environmentally responsible healthcare environment.”  

“At Vicinity, our priority is delivering innovative, sustainable energy solutions tailored to the unique needs of our customers,” said Kevin Hagerty, CEO and president of Vicinity. “We’re proud that OSU has chosen district energy for its reliability and environmental benefits, entrusting us with the opportunity to power their state-of-the-art medical campus. This partnership not only significantly reduces OSU’s onsite carbon emissions but also positively impacts the campus and the surrounding community.” 

Vicinity is committed to achieving net zero carbon emissions across its entire portfolio while offering sustainable solutions to help decarbonize its customers and communities. In Tulsa, Vicinity plans to implement electric boilers and heat recovery heat pumps, leveraging renewable energy sources to decarbonize its operations. This initiative will allow Vicinity to provide Tulsa customers with its carbon-free thermal energy product, eSteam™.

About Vicinity Energy

Vicinity Energy is the largest owner and operator of district energy systems dedicated to decarbonizing its operations and investing in innovative renewable thermal energy technologies to offer carbon-free eSteam™ to its customers. Operating 19 district energy systems in 12 cities, Vicinity delivers reliable and sustainable steam, hot water, and chilled water to 260 million square feet of building space nationwide. As Vicinity advances its electrification efforts across its locations, the goal to achieve net zero by 2050 is more than a commitment—it’s a mission. Learn more about Vicinity’s vision for a clean energy future at www.vicinityenergy.us.

Media Contact
Sara DeMille
Senior Director, Marketing and Communications
media@vicinityenergy.us

Sustainability spotlight: a conversation between Vicinity Energy and Ballard Spahr

Sustainability spotlight: a conversation between Vicinity Energy and Ballard Spahr

by Ballard Spahr | August 6, 2024

 

In this episode of Ballard Spahr’s Sustainability Spotlight series, Vicinity Energy’s Chief Sustainability Officer Matt O’Malley and Vice President of Government Affairs Jeannie Morris discuss how Vicinity is combating the climate crisis with carbon-free eSteam™ and why more businesses need to take action now. Brendan K. Collins, a partner in Ballard Spahr’s Philadelphia Office and leader of the firm’s Manufacturing and Consumer Products Industry Group, hosts the discussion.

About Ballard Spahr LLP

Ballard Spahr LLP, an Am Law 100 law firm with more than 600 lawyers in 15 U.S. offices, serves clients across industry sectors in litigation, transactions, and regulatory compliance. The firm’s Sustainability Spotlight podcast highlights the sustainability efforts that businesses are making to combat climate change and other environmental challenges.

Powering healthcare facilities with district energy

Hospital administrators have one key concern that drives all decision-making: how to provide the highest quality care to their patients cost-effectively and efficiently. In today’s challenging environment, hospital leadership is thinking of ways to reduce costs while maintaining high patient care and safety standards.

Unique energy demands require reliable, green solutions

It’s no secret that hospitals have unique energy needs. Given the critical care that hospitals and healthcare facilities provide, any disruption to energy delivery can have dire consequences.

In addition, hospitals serve patients 24 hours a day, 365 days a year. Their operations depend on energy for heating, cooling, and, importantly, sterilization to ensure patient safety. These demanding energy needs mean that healthcare facilities consume nearly 10% of the total energy used in U.S. commercial buildings and spend more than $8 billion annually.

Many leading U.S. cities also have aggressive climate action goals. Hospitals typically have an energy use intensity nearly three times that of the average commercial building, so sustainable energy has become a non-negotiable requirement for hospitals and medical facilities that provide cutting-edge care.

How Vicinity can help

Today, lighting, space heating, and water heating represent about 65% of hospital energy use. Hospitals and healthcare facilities must have a reliable energy partner that provides continuous energy delivery while keeping costs low and reducing carbon emissions.

Vicinity currently serves nearly 28 million square feet of healthcare facility space in the U.S. By connecting to Vicinity’s district energy systems, healthcare teams have access to reliable, sustainable, and clean energy and are supported by a team of experts to ensure their property is always running smoothly and efficiently. Our specialists include experienced licensed engineers, operators, and financial professionals.

In Baltimore, leading healthcare providers at Mercy Medical Center have relied on Vicinity’s district energy system to power their critical care since 1963. One of the top hospitals in Baltimore, Maryland, Mercy Medical Center is renowned for excellence in primary care and specialty care in women’s health, cancer, digestive health, liver disease, and more. While Vicinity provides chilled water and steam for the hospital’s daily operations, Mercy can focus on fostering a community of compassionate care for their patients.

Robert Beckwith, vice president of support services and construction at Mercy Medical Center, offered his perspective on the partnership: “The steam and chilled water services that Vicinity Energy provides are crucial to the operational efficiency of our hospital and support our mission to provide excellent and compassionate clinical care to all citizens of Baltimore.”

Additionally, Vicinity has partnered with Oklahoma State University (OSU) to provide chilled water and steam service to a new medical campus. This project will combine multiple existing buildings into a state-of-the-art hospital. Vicinity will serve the entire 58-bed medical-surgical inpatient hospital for Oklahoma veterans, totaling over 275,000 square feet of building space. District energy will allow the medical campus to provide the highest level of care for Tulsa’s veteran population.

Vicinity’s long-term partnerships with healthcare institutions in Baltimore and beyond enable healthcare teams to focus on providing quality clinical care to patients.

How district energy supports optimal patient care

By relying on our energy experts to manage energy infrastructure and ensure an uninterrupted supply of service, healthcare providers can focus on what matters most: advancing human health and saving lives.

  • Increased reliability and sustainability – District energy is safer and more sustainable than onsite chillers or boilers.
  • Maximized critical space – District energy service eliminates the need for in-building boilers, chillers, and cooling towers so that healthcare facilities can free up space for life-saving equipment. Hospitals connected to district systems can make smart, economical use of all the space that would otherwise be dedicated to large, costly equipment.
  • Optimized sterilization and humidification – The CDC recommends steam sanitation over conventional sanitation methods. Hospitals use our high-pressure steam for space humidification to support infection control and patient comfort. Our clean steam solutions provide proper air and comfort for healing, empowering hospital staff to provide patients with top-quality care.
  • Uninterrupted energy supply – Healthcare facilities with existing onsite energy plants require experienced O&M experts to ensure that they are operating correctly, and that energy is supplied at all times. Proper O&M of energy infrastructure is essential to ensuring that healthcare facilities have the energy to operate 24/7.

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

Vicinity Energy Announces Bill DiCroce’s Passing of the Baton to Kevin Hagerty as the New CEO

Boston, MA, July 10, 2024—Vicinity Energy, a leading provider of sustainable energy solutions, is pleased to announce the appointment of Kevin Hagerty as the company’s new chief executive officer and president. Bill DiCroce has led Vicinity and its predecessors as CEO and president since 2012 and will stay on as executive chairman of Vicinity’s Board of Directors.

Bill DiCroce’s long tenure as CEO and president has been marked by significant accomplishments, shaping the district energy portfolio and driving transformative growth and efficiency for Vicinity. Under his leadership, the company has expanded its footprint, enhanced its technological capabilities, and solidified its position as a leader in the urban and campus clean energy sector. Bill’s vision and dedication have been instrumental in advancing Vicinity’s mission to provide sustainable and reliable energy solutions to its customers and communities.

“I am incredibly proud of what we have achieved at Vicinity,” said Bill DiCroce, executive chairman of Vicinity. “Our adoption of cutting-edge clean energy technologies and our commitment to sustainability have set a strong foundation for the future. Kevin has been instrumental in driving our shift to electrification and will continue to lead our efforts to decarbonize our customers and operations.” 

Kevin Hagerty brings a wealth of experience and a forward-thinking approach to his new role as CEO and president. With a proven track record of driving innovation and fostering growth, Kevin is poised to lead Vicinity into its next chapter. His vision for a clean energy future aligns perfectly with Vicinity’s commitment to offering sustainable energy solutions that decarbonize our customers and communities.

“I am honored to take on this new role and continue the essential work of decarbonizing and expanding Vicinity’s district energy business,” said Kevin Hagerty, CEO and president of Vicinity. “My focus will be accelerating our efforts to provide clean, efficient, and reliable energy solutions to drive the transition to a sustainable energy future. A prime example of our commitment is our recent partnership with Emerson College, where we are excited to support their sustainability goals through our innovative eSteam™ solution.”

As part of this vision, Vicinity is committed to electrifying its operations and expanding its innovative eSteam™ solution. By transitioning from fossil fuels to electricity sourced from renewable energy, Vicinity aims to significantly reduce carbon emissions and enhance the sustainability of its services. eSteam™, in particular, represents a groundbreaking approach to providing carbon-free steam for heating and cooling needs, further supporting customers in their journey toward decarbonization and compliance with building performance standards.

“Our electrification initiatives and district solutions are designed to decarbonize at a city-wide scale. Creating a sustainable energy future is a monumental task that we all share, and innovative solutions like Vicinity’s eSteam™ are crucial to addressing this challenge with the necessary scale and speed,” added Kevin Hagerty. “Vicinity is made up of an incredible team of people that I am proud to be a part of, and together, we will strive to do what is best for our customers, the cities we serve, and our planet.”

As Vicinity looks ahead, the company remains dedicated to its core mission of safety, sustainability, innovation, and community. With Kevin Hagerty at the helm and Bill DiCroce’s continued strategic involvement as executive chairman, Vicinity is well-positioned to lead the clean energy transition of urban cores and campuses.

About Vicinity Energy

Vicinity Energy is the largest owner and operator of district energy systems dedicated to decarbonizing its operations and investing in innovative renewable thermal energy technologies to offer carbon-free eSteam™ to its customers. Operating 19 district energy systems in 12 cities, Vicinity delivers reliable and sustainable steam, hot water, and chilled water to over 260 million square feet of building space nationwide. As Vicinity advances its electrification efforts across its locations, the goal to achieve net zero by 2050 is more than a commitment—it’s a mission. Learn more about Vicinity’s vision for a clean energy future at www.vicinityenergy.us.

Media Contact
Sara DeMille
Senior Director, Marketing and Communications
media@vicinityenergy.us

Mercy Medical Center counts on Vicinity for reliable steam and chilled water expansion

Industry

Healthcare

Location

Baltimore, MD

Square footage

1.4 million

The customer

Mercy Medical Center is an acute care, university-affiliated teaching hospital serving the downtown Baltimore community and beyond since 1874. Since its founding by the Sisters of Mercy, the hospital has helped shape downtown Baltimore and continues to provide award-winning patient care in women’s health, orthopedics, cancer care, digestive health, and more. With 183 licensed beds, this thriving health system proudly serves its community with prestigious doctors and leading Centers of Excellence. The facility is part of Mercy Health Services (MHS), the parent of Mercy’s primary care and specialty care physician enterprise, which employs over 200 providers with locations across Maryland. 

Mercy’s staff is dedicated to respecting the humanity of each patient and delivering high-quality care with warmth and compassion. Mercy has been recognized as a top Maryland hospital by U.S. News & World Report, a top 100 hospital for women’s health and orthopedics by Healthgrades, and a Magnet Hospital by the American Nurses Credentialing Center. Additionally, Mercy has ranked as one of the safest hospitals in the U.S., achieving an “A” Leapfrog Hospital Safety Grade. 

The challenge

As one of the top hospitals in Maryland, Mercy requires reliable energy solutions to meet its high demand for heating, sterilization, and chilled water to keep mission-critical operations up and running 24/7 and optimize patient comfort.  

After leveraging district energy for nearly sixty years, the Mercy team sought opportunities to support the hospital’s increasing energy load while achieving long-term energy resilience and cost savings. 

The solution

As one of Vicinity’s longest-standing partners, the Mercy team further demonstrated its trust in district energy by extending the hospital’s contract with Vicinity for over 20 years, expanding its chilled water service, and leveraging Vicinity experts for annual preventive maintenance. While Vicinity provides chilled water and steam for the hospital’s daily operations, Mercy can focus on fostering a community of compassionate care for patients. 

“The steam and chilled water services that Vicinity Energy provides are crucial to the operational efficiency of our hospital and support our mission to provide excellent and compassionate clinical care to all citizens of Baltimore,” states Mercy Medical Center’s Vice President of Support Services and Construction Robert Beckwith.

Tackling large capital projects with low upfront costs

Vicinity implemented improvements to existing steam infrastructure to drive system efficiencies, reduce energy costs, and decrease annual maintenance spending for Mercy. The project included the relocation and replacement of 900 feet of steam piping along Saratoga Street from Charles to Calvert. Vicinity also expanded and extended its chilled water system 550 feet east along Saratoga Street to serve Mercy and future customers in this section of Baltimore. The upgrade and replacement of existing steam mains along with the addition of new chilled water piping also brought about street beautification from Saratoga Street to Calvert Street with road repaving and aesthetic improvements to public spaces. While Vicinity invests in the Baltimore district energy system to optimize its efficiency and expand its reach throughout the city, Mercy and other Baltimore customers are able to reap the benefits of these upgrades with minimal upfront costs.  

Enhanced reliability for 24/7 patient care 

As part of this extended partnership, Vicinity supplies the Mercy campus with more chilled water from its central chilled water system, quadrupling the cooling output previously provided to the hospital. Vicinity also tied the district chilled water into Mercy’s existing chilled water facility to keep both resources available for guaranteed reliability. Vicinity’s interconnected central facilities, back-up generation, and multiple water and fuel sources deliver the reliability that Mercy and the Baltimore community depend upon. 

Reducing Baltimore’s carbon footprint 

District energy harnesses the power of a centrally located facility to generate cost-effective steam and hot and chilled water that yield greater efficiency, reliability, and carbon reductions over conventional generation, such as onsite boilers or chillers. Because Vicinity leverages renewables to generate approximately 50% of the steam delivered to Baltimore customers and 100% carbon-free electricity via emission-free energy certificates (EFECs), district energy helps reduce Mercy’s carbon footprint. In fact, district energy helps the City of Baltimore avoid 71,361 tons of carbon emissions annually. As Vicinity advances its electrification strategy across all its operations, customers, like Mercy, will continue to receive greener energy solutions and make strides towards decarbonization.   

Benefits

energy experts

Access to energy experts

99.99% reliability 

Meet stringent energy needs

Community volunteers, with the help of nonprofit and private sector, create urban pollinator habitat in Point Breeze park