Industry: Residential real estate
Vicinity Energy Commences Construction of Industrial-Scale Heat Pump Complex in Partnership with DCO Energy and Everllence
Latest agreement affirms Vicinity’s commitment to decarbonization in Greater Boston, achieving net zero by 2050
Cambridge, MA, November 4, 2025 – Vicinity Energy, a decarbonization leader with the nation’s largest portfolio of district energy systems, today announced agreements with Everllence [formerly MAN Energy Solutions], and DCO Energy. This partnership secures the latest achievement in Vicinity’s electrification strategy that is already well underway in Boston and Cambridge, locking in the installation of a 35MW river-based industrial-scale heat pump complex for steam generation with the ability to reach over 70 million square feet of building space.
A significant portion of this industrial-scale heat pump has already been secured through long-term contracts with leading medical and educational institutions, even before construction has begun. This interest underscores both the strong demand and market confidence surrounding decarbonization.
The industrial-scale heat pump will be provided by Everllence while the installation and balance of plant modifications will be completed by DCO. A natural gas boiler will be removed to make way for the new, emissions-free heat pump, with demolition already underway in preparation for the heat pump installation at Vicinity’s Kendall Square facility by 2028. The heat pump will be collocated at the existing Kendall plant site, leveraging Kendall’s existing electrical interconnect. This technology will enable Vicinity to harness the inherent heat of the Charles River, turning it into a renewable energy resource to generate and deliver carbon-free thermal energy, known as eSteam™, to its customers.
As the baseload generating equipment for the company’s electrification plans in Boston and Cambridge, this innovative system will be the first to utilize the Charles River as a renewable resource to produce carbon-free steam, representing a significant leap forward in sustainable energy production. The company also plans to install thermal storage technologies to provide on-demand eSteam™ production from renewable electricity.
The net impact of the project is multifaceted: customers gain access to carbon-free thermal energy, citizens of Boston and Cambridge breathe significantly cleaner air, local laborers and unions gain access to quality jobs, and the Charles River ecosystem benefits from reduced temperatures.
“Execution of this project makes Vicinity’s vision of decarbonizing cities at scale a reality,” said Kevin Hagerty, CEO at Vicinity Energy. “Powered by renewable electricity to safely and efficiently harvest energy from the Charles River, this represents rapid advancement in electrification for U.S. district energy systems, demonstrating how proven heat pump technology can be deployed at scale to decarbonize cities. It enables immediate, scalable carbon reductions without the need for costly and time-intensive new electrical infrastructure in Greater Boston. We are establishing the blueprint of how to decarbonize a U.S. city and will be installing similar innovative electrification technologies at our district energy systems across 12 U.S. cities.”
The agreement with Everllence to build a river-source heat pump complex at Vicinity’s Kendall facility relies on the Charles River’s thermal energy, an untapped renewable energy resource.
“The heating sector still drives a major portion of global CO₂ emissions, and the energy transition simply cannot succeed without decarbonizing heat,” said Uwe Lauber at Everllence. “District heating remains one of the most efficient and sustainable ways to deliver thermal energy to commercial and industrial users. With this latest agreement, we are taking a major step forward with Vicinity to bring our proven mega heat pump technology to the U.S. market. Together, we are demonstrating how district energy systems can shift away from fossil fuels while maintaining resilience and performance.”
Previously, Vicinity installed a new 42MW electric boiler at its Kendall facility, which provides carbon-free thermal energy to its Boston partners through the established 29-miles of steam piping that runs underneath the city — the Boston and Cambridge district energy system. eSteamTM customers currently include IQHQ and Emerson College. By adopting eSteamTM , these institutions are not only advancing their sustainability goals but also positioning themselves to comply with local requirements such as BERDO and BEUDO, while aligning with Massachusetts’ Stretch Energy Code.
“Our priority is delivering reliable, practical solutions that make economic sense,” said Gary Fromer, CEO at DCO Energy. “Vicinity’s heat pump installation is a smart investment—it reduces emissions without compromising performance, and it’s built to operate efficiently over the long term. It’s a real-world step toward sustainability that works for today and the future. This collaboration builds upon the recent success of our joint projects in Philadelphia, further strengthening our track record of delivering innovative, sustainable energy solutions together.”
Building on the blueprint established in Boston and Cambridge, Vicinity is applying lessons learned to guide decarbonization plans in other cities. Progress is already underway in Grand Rapids, where installation of a 9MW electric boiler has begun, marking the city’s first step toward electrification. While each location will follow its own path and timelines, Vicinity is committed to advancing sustainable, scalable solutions across its portfolio. Click here to read more about Vicinity’s district energy systems and its commitment to innovation and the environment.
About Everllence
Everllence (formerly MAN Energy Solutions) is a leading provider of propulsion, decarbonization and efficiency solutions for shipping, the energy economy and industry. True to our motto – ‘Moving big things to zero’ – we help key industries in the global economy to reduce hard-to-abate emissions. Our technologies have a measurable impact on the success of the global energy transition. Headquartered in Germany, Everllence employs some 15,000 people at over 140 sites globally. Our after-sales brand, Everllence PrimeServ, also supports our customers through its worldwide service-center network.
About DCO Energy
https://www.dcoenergy.com/about/
DCO Energy (DCO) is a nationally recognized developer of sustainable and renewable energy facilities that enriches the communities it operates by partnering with contractors, businesses, and talent. DCO Energy applies robust and innovative design, construction, and operation methodologies resulting in sustainable and safe solutions for owners in different industry sectors.
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 250 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.
Accelerating downtown decarbonization with district energy
Vicinity Energy’s President and CEO Kevin Hagerty, along with Chief Sustainability Officer Matt O’Malley, participated in this informative webinar, “Accelerating Downtown Decarbonization with District Energy”, focused on the future of electrification strategies in downtown steam networks. The session, hosted by the International District Energy Association (IDEA), brought together leading voices in the district energy space to explore practical solutions for decarbonizing urban infrastructure.
Held virtually and featuring experts from across the country, the webinar highlighted how district energy systems are evolving to meet the growing demand for sustainable, resilient, and low-carbon heating solutions. As cities around the world set ambitious climate goals, the transition to electrified, carbon-free energy systems has become more urgent than ever.
The discussion centered on how major metropolitan areas like New York City, San Francisco, and Boston and Cambridge are leveraging district energy to support their climate mandates. These include New York’s Local Law 97, which sets strict emissions limits for large buildings; San Francisco’s Climate Action Plan, which aims to reach net-zero emissions by 2040; and Boston’s Building Emissions Reduction and Disclosure Ordinance (BERDO), designed to cut carbon emissions from existing buildings.
Hagerty and O’Malley shared insights into Vicinity’s own electrification journey, including innovative technologies like electric boilers and industrial-scale heat pumps that are key to decarbonizing its steam systems.
As the largest owner and operator of district energy systems in the United States, Vicinity Energy continues to provide innovative solutions that enable cities to reduce carbon emissions while maintaining reliable, safe energy service.
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Vicinity Energy Kicks off Electrification Plans in Grand Rapids
Local leaders and Vicinity executives expect the new electric boiler to launch in 2026, providing carbon free thermal energy to over 100 customers in Grand Rapids
Grand Rapids, MI – Vicinity Energy, a decarbonization leader with the nation’s largest portfolio of district energy systems, has officially kicked off its Grand Rapids electrification plans by commencing the installation of its newest electric boiler. Vicinity will install the 9MW electric boiler at its Grand Rapids facility, marking a key milestone in the company’s Clean Energy Future commitment to reaching net zero carbon emissions across all of its operations by 2050.
U.S. Representative Hillary Scholten (MI-3) commemorated the milestone at Vicinity’s Grand Rapids facility, along with local business leaders and energy advocates.
“We are proud to see Vicinity, a long-standing energy partner in Grand Rapids, launch its innovative eSteamTM right here in the city,” said Grand Rapids Mayor David LaGrand. “This project will bring locally generated, carbon-free steam to our downtown businesses, supporting Grand Rapids’ commitment to sustainability, clean energy, and a resilient future.”
Vicinity Energy received a grant exceeding $2 million from the Michigan Public Service Commission (MPSC) as part of the Renewable Energy and Electrification Infrastructure Enhancement and Development (EIED) program. This funding supports the installation of the 9MW electric boiler at Vicinity’s downtown Grand Rapids facility, marking the first new boiler addition in 60 years at the facility. The project aims to produce carbon-free eSteamTM to support the decarbonization of Grand Rapids, aligning with the MI Healthy Climate Plan’s goals to reduce greenhouse gas emissions and transition toward carbon neutrality.
“Our work towards carbon-free, clean energy is critically important to not only our own goals, but the goals of our state and local partners across the country. Here in Grand Rapids with the installation of this electric boiler, we will enable a seamless conversion to carbon-free eSteam TM for our customers,” said Vicinity Energy CEO Kevin Hagerty.
When the electric boiler enters service in 2026, over 120 of Vicinity’s customers in Grand Rapids will have access to carbon-free thermal energy instantly.
Click here to read more about Vicinity’s district energy systems and its commitment to innovation and the environment.
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 250 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.
