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.

Emerson College becomes the first college to decarbonize with eSteam™

Industry

Higher education

Location

Boston, MA

Square footage

1.5 million

The customer

Located in the heart of Boston’s Theater District, Emerson College’s expansive 1.5 million-square-foot campus is home to over 5,000 undergraduate and graduate students. Founded in 1880, Emerson has a long history of providing premier academic experiences, focusing on communication and the arts. Its bustling campus features state-of-the-art academic facilities that blend the historic charm of the city with modern green design and energy solutions.

Regularly ranked among the top 50 Green Colleges in the U.S., Emerson College has earned gold status in the AASHE Sustainability Tracking, Assessment & Rating System, which measures the sustainability performance of colleges and universities. Emerson’s Sustainability Action Plan further underscores its commitment to protecting the planet, aiming to achieve a carbon-neutral and resilient campus by 2030. Since setting its carbon neutrality goal in 2007, Emerson has reduced its carbon footprint by 46%. Through campus sustainability efforts, including rainwater recovery systems, energy-efficient lighting, trayless dining, water-efficient sinks and toilets, and composting, Emerson is a leading example for higher education institutions aiming to enhance their environmental impact.

With Emerson’s bold commitment to carbon neutrality by 2030 and the City of Boston’s emissions limits implemented as part of the Building Emissions Reduction and Disclosure Ordinance (BERDO) 2.0 passed in 2021, the College needed an energy solution that would help it quickly achieve these aggressive goals without requiring significant capital for major infrastructure upgrades. As the College considered various energy solutions, the institution prioritized cost-effective solutions that would not significantly disrupt regular campus operations. Emerson turned to Vicinity, a long-term partner of the College, to leverage eSteam™, Vicinity’s carbon-free thermal energy solution, solidifying its standing as a sustainability trailblazer in higher education.

“This partnership sets a new standard for sustainability within small urban higher education institutions, and we are proud to lead by example, demonstrating that significant, sustainable change is possible and necessary for the future,” states Jennifer Lamy, associate director of sustainability at Emerson.

Building upon a longstanding partnership and legacy

Since 2004, Emerson has leveraged Vicinity’s district steam to provide heating and hot water for most of its Boston campus—a move that has reduced maintenance efforts and costs, optimized building space, improved energy reliability, and minimized capital costs and greenhouse gas emissions.

In the early 1990s, Emerson gradually relocated its main campus from the Back Bay to the historic Theatre District. Emerson steadily grew its campus footprint along the southeast end of the Boston Common, expanding its reach through acquisitions, new construction, and renovations. During this transformative time, Emerson demonstrated its commitment to sustainability by replacing large gas-fired hot water tanks with district energy. Emerson selected district energy to avoid the maintenance and upfront capital costs required for onsite equipment, support its evolving campus’ needs with a scalable solution, improve reliability, and make strides in achieving its sustainability goals.

For over two decades, Emerson has connected additional buildings to Vicinity’s district energy system, leveraging district steam for heating and hot water for 12 buildings across its campus, including dormitories, assembly spaces, offices, cafeterias, and classrooms. Steam purchased from Vicinity makes up 36% of Emerson’s emissions portfolio.

Emerson reduces upfront costs with Vicinity’s scalable solution

The scalability of district energy has always been an essential benefit to Emerson. Vicinity previously oversized the service connection to one of Emerson’s buildings, partnering closely with the College to support its campus master planning. The College planned to eventually eliminate gas boilers on the roof of one of its buildings during a future renovation, so they needed the ability to increase steam service when the time was right. This flexible approach allowed Emerson to meet its energy demands precisely when they needed it as the campus developed over time.

When Emerson evaluated alternative energy solutions more recently in 2024, the College considered converting to electric. This approach would require significant upfront capital investments to install a small electric boiler at one building instead of serving as a campus wide solution. Instead, eSteam™ enables Emerson to quickly and affordably decarbonize its whole campus without any infrastructure upgrades necessary. As Vicinity electrifies its operations in Kendall Square by installing electric boilers, industrial-scale heat pumps, and thermal battery storage, Emerson can easily convert from standard district steam to eSteam™ through its existing connection to Vicinity’s network of underground pipes.

“This project marks a pivotal moment in Emerson College’s journey towards environmental responsibility and sustainability,” said Emerson President Jay M. Bernhardt.

Emerson combats climate change with eSteam™

Emerson’s decision to transition to eSteam™ is a significant stride toward achieving a carbon-neutral and resilient campus by 2030. While the campus buildings have decreased their carbon emissions by 80% since 2007, this step is an important pillar of the College’s continued carbon reduction strategies, making Emerson’s thermal operations carbon-neutral. Leveraging a clean energy source aligns with Emerson’s goals to ensure that the campus community and its neighbors thrive in climate change, adopt justice-centered approaches in sustainability efforts, and integrate social and economic sustainability into its curriculum and operations. As demonstrated by the reach of the student organization Emerson Green, the popularity of sustainability-focused courses, and responses to an annual student survey, sustainability is core to the campus culture. Transitioning to eSteam™ will help Emerson attract sustainability-minded students and national attention for its impressive sustainability leadership.

Benefits

lower carbon

Carbon neutrality

capital savings icon

Capital savings

maximized space icon

Scalability and flexibility

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.

It’s electric! In Boston, buildings are testing cutting-edge technology to transition fully to renewable energy

Vicinity Energy has a new CEO

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