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

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

Lifting Kansas City’s spirits with district energy

Industry

Industrial and manufacturing

Location

Kansas City, MO

Square footage

12,000

The customer

Within a renovated 19th century stable in the Crossroads Art District of Kansas City is Lifted Spirits, a unique craft distillery and event space. Upstairs in their “Hayloft,” where horse feed and bedding were once stored, is a beautiful event space that customers can rent out to enjoy delicious spirits while making lasting memories. This former stable was constructed in the 1890s and converted into a high-end craft distillery in 2016. Ever since, Lifted Spirits has been a staple of the Kansas City community, featuring local artists’ work and hosting seasonal events. The distillery has even been recognized with awards from leading industry organizations, including the New York International Spirits Competition, International Spirits Competition, and American Distilling Institute.   

The challenge 

Lifted Spirits previously relied on a single onsite gas boiler to meet its energy needs. However, after a few years of navigating the complexities, repairs, and maintenance required to upkeep this aging equipment, the new owners sought an energy alternative. The challenge was finding an energy source that would reliably, cost-effectively, and sustainably supply proper control of heat and an abundance of hot water for the distilling process. 

The solution 

After evaluating the lifecycle costs of several energy options, Lifted Spirits’ owners decided that district energy was the optimal solution for meeting their heat and hot water needs, while also achieving significant energy savings. 

Reliable service for a precise distillation process 

Because the distillation process requires precise control for a significant amount of steam, a reliable and high-quality thermal energy source was crucial. Lifted Spirits chose Vicinity in part due to the 99.999% reliability rate associated with its resilient district energy system. 

High-quality food-grade steam 

In Kansas City, the district steam system generates food-grade steam, or culinary steam, to serve manufacturing and industrial customers who use steam in the production of food-related products. Culinary steam is necessary for the distillation process to ensure that Lifted Spirits continues to produce high-quality beverages. Providing a consistent, high-quality product is critical to Lifted Spirits’ overall business and brand reputation, helping drive customer loyalty.  

Achieving cost-savings 

After considering alternative boiler options and comparing the costs and efficiencies of each, Lifted Spirits chose Vicinity’s district energy system to achieve more competitive energy pricing and eliminate labor costs associated with boiler operations. Through a simple connection to the Kansas City district system funded by Vicinity, the distillery now enjoys cost effective thermal energy with minimal upfront capital costs. 

Freeing up mechanical space for business operations 

Without Lifted Spirits’ onsite gas boiler, the owners are able to leverage the added interior space for core business operations. Because the distillery hosts tours, tastings, and custom events, every square foot of space is valuable to enhance Lifted Spirits’ business operations and customers’ experiences.  

Benefits

Precise steam control

cost savings icon

Lifecycle and upfront cost savings

Maximized building space 

Food-grade, clean steam​

operations savings icon

Less maintenance

99.99% reliability  ​