District energy is charging Philly’s ever-growing life science market

Life sciences are currently booming in the United States. An outpouring of new products and technology coupled with capital inflows from public and private investors are transforming the industry, allowing new implementations to take shape. As talent within the field continues to rise, new treatments for diseases such as cancer, HIV, and cystic fibrosis are finally within reach. There has also been a growing emphasis on the standard of care patients receive, demonstrated through the quality and performance management requirements gaining particular attention in life science professions. With this surge in technology, funding, talent, and performance, the demand for lab space across significant markets is stronger than ever. 

A real estate shift is occurring

The COVID-19 pandemic ignited a shift in how traditional office spaces are used. Lockdowns proved that employees did not have to be in the office to complete projects and tasks, and productivity increased with remote tools such as Zoom and Microsoft Teams for collaboration. This new paradigm has diminished the need for office space in numerous industries.

Needle inserted into covid 19 vaccine vial

The opposite is true for careers in medicine and biotechnology: the pandemic verified the crucial need for health care workers and researchers to have hands-on lab space for their life-saving findings and operations. The outcome of these two factors was a real estate scramble.

Because of this transition, city landlords are desperately converting their vacant office spaces into laboratories, making way for the world of life sciences to thrive.

How is this affecting Philadelphia?

In 2017, researchers at the University of Pennsylvania and Children’s Hospital of Philadelphia boosted Philly’s status in the medical industry by developing an FDA-approved treatment for a rare form of retinal blindness. That same year, the University of Pennsylvania’s CAR T cell therapy was approved by the FDA to treat a specific type of cancer found in children and young adults. This treatment has now won its third FDA approval in 2022. 

Philadelphia has since maintained its glowing reputation as a hub for the life science market, as seen by the industry’s employment rate, which has grown by a staggering 116% since 2001. Medical and biotech organizations flock to Philadelphia not only for their growing pool of talent but also for their valuable real estate. Compared with other top life science markets such as Baltimore, San Francisco, and New York City, Philadelphia’s market displays significant cost advantages in building operations and maintenance. 

These cost advantages can be attributed to Philly’s thriving district energy network, a crucial motivator for labs, hospitals, and other research and development establishments to expand into this region.

Meeting rigid requirements for laboratories

Laboratory operations require a lot more energy than those of a typical office building. In the U.S., labs can use anywhere from 30 to 100 kilowatt-hours of electricity and 75,000 to 800,000 Btu of natural gas per square foot every year. In a standard laboratory, most power is sourced for cooling, lighting, and space heating, with lighting and space heating accounting for approximately 74% of total energy use.

The ceilings of laboratories must also be appropriate for ductwork and equipment. There must be sufficient airflow for the safety of technicians as well as viable interior wall and ceiling space to meet upgraded mechanical and utility conditions. More importantly, laboratories require a large volume of high-quality, reliable thermal energy to support their fundamental operations. Specific ventilation, space temperature, and humidity measures are necessary to sterilize laboratory tools and equipment.

Surgical tools being set on a sterilized table

An error in any of these requirements can result in millions of dollars lost in research and development. This could cause a significant financial burden for biotech and pharmaceutical organizations as well as catastrophic setbacks in the advancement of medical discoveries. 

Establishing lab space in Philly

As progressive climate action goals continue to develop throughout the U.S., low-carbon sustainable energy will soon become a non-negotiable requirement in cities like Philadelphia. Additionally, individual biotech companies typically have sustainability initiatives, making green energy increasingly vital to operations.

With the speed at which life science firms are growing and expanding, ground-up construction is not an option. Existing buildings must adapt to these requirements, which are becoming increasingly rigid, to meet rapidly approaching sustainability goals. District energy builds upon existing infrastructure, so buildings do not need to make expensive renovations to decarbonize their operations. This energy alternative has been proven to be both environmentally green and cost-effective.

Vicinity’s Philly district energy system

Vicinity Energy offers affordable green steam to Philadelphia’s renowned universities, medical research facilities, hospitals, and other commercial institutions. This steam system is one of the largest district energy systems in the U.S., covering over 100 million square feet of the city’s grounds.

Vicinity has already made multimillion-dollar investments to improve Philly’s critical energy infrastructure, enabling this district energy network to reduce carbon emissions by nearly 300,000 tons annually. 

District energy is considerably more affordable than other onsite alternatives, such as building in hefty electric boilers, which are expensive to install and maintain, take up excess space, and detract from valuable real estate. Vicinity’s interconnected steam facilities provide built-in redundancy, backup generation, and multiple water and fuel sources to ensure these crucial life science organizations can stay up and running 24/7.

The result

As Philly’s district energy system expands, hospitals and laboratories can devote more time, money, and physical space to their life-saving operations. District energy users also enjoy peace of mind knowing that their building supports renewable energy distribution as Vicinity strives towards a cleaner and greener future for Philadelphia.

The $369 billion gamechanger for clean energy

In the same week as a record-breaking Mega Millions jackpot, the US Senate reached a groundbreaking $369 billion climate agreement, days after it appeared a deal was all but dead, The Inflation Reduction Act, which is expected to pass the House later this week, is a milestone victory for the green sector, making a record-shattering investment into emissions-free energy production. It promises to cut carbon emissions by 40 percent nationwide and massively overhaul how Americans get their electricity, heating, and cooling. Although it’s not the multi-trillion-dollar climate plan that President Joe Biden originally envisioned, $369 billion on a bad day isn’t bad.

As anticipated, if passed by both chambers, the Inflation Reduction Act will, as the name suggests, reduce inflation and produce tangible gains for a US economy in desperate need of a boost. Critically, it will also reset the climate change agenda and help to make decarbonization a household issue for a generation of Americans.

You can call it watered down if you’d like. Still, the Inflation Reduction Act is a major political win for both pragmatism and popular opinion, as David Wallace-Wells wrote in the New York Times: “This bill is a compromise, obviously and outwardly. It is also a historic achievement for the climate left and a tribute to its moral fervor and political realism.”

For companies like Vicinity Energy, these historic investments in renewable energy are in lockstep with the decarbonization investments we are already making in the cities served by our district energy systems. Vicinity’s agile, fuel-agnostic systems can easily switch to carbon-free energy sources and lower carbon emissions by converting renewable power into steam. Customers on the system receive a thermal energy product without emitting CO2, making district energy a game changer for the climate and our communities.

So, where is the $369 billion going? The Inflation Reduction Act incentivizes developers to build new emissions-free electricity sources, such as geothermal heating, wind turbines, and solar panels, by offering billions of dollars in tax credits over ten years. The deal struck by Congress also provides substantial incentives to low- and middle-income households to transition to electric heat, fueled by renewables, in their homes. Overall, the legislation stands to rapidly speed up the country’s transition away from fossil fuels and bring the United States closer to the emissions targets set in the Paris Climate Accord.

Among the policies and investments being made with the single-largest investment into the green sector in history are:

  • $4.28 billion – dedicated to creating a High-Efficiency Electric Home Rebate Program that will provide $8,000 for homeowners to install heat pumps, among other rebates.
  • $60 billion – providing incentives to ramp up domestic manufacturing for clean energy products like solar panels, wind turbines, and batteries.
  • $60 billion – targeting a series of environmental justice programs, such as community block grants for neighborhoods that have been disproportionately impacted by the public health harms of pollution and climate change.
  • New federal penalties for companies that produce methane leakage
  • An end to the Trump-era moratorium on offshore wind in the Gulf

You can read the full text of the bill here.

Reimagining the energy industry: an inflection point for decarbonization efforts

As a coastal city, Boston is particularly vulnerable to the negative and real impact of climate change. Over the next several decades, according to a new report from the University of Massachusetts Boston, this region will almost certainly see hotter days, increasingly intense storms, and rising sea levels. Current guidance coming out of local and state government – such as Boston’s updated Building Emissions Reduction and Disclosure Ordinance (BERDO 2.0), which sets requirements for large buildings to reduce their energy and water use data, stretch codes which are mandated so buildings will achieve higher energy savings, and growing investments in green and renewable energy technologies – are prescriptive policies that will help lower greenhouse gas emissions and hopefully slow climate change’s tide.

Still, with the recent Supreme Court decision curtailing the EPA’s authority to regulate greenhouse gas emissions, achieving a 50 percent drop in emissions by 2030 or a net zero future with the remaining tools from a federal regulation standpoint will be increasingly challenging. This ruling affirms the local business community’s role in achieving net zero, particularly in Greater Boston. In a way, it is an opportunity for creative solutions to drive what needs to be done.

Coming from the government world, I am excited to be part of the solution. And with 2022 now at its midpoint – an inflection point regarding how environmental progress will be achieved locally and nationally, I thought I would share an update on the state of play from our perspective.

Recently there’s been momentum in the environmental world regarding the usage of old technology with an innovative, fresh lens. For instance, cargo bikes are an efficient and environmentally friendly method for making last-mile deliveries. A study last year by Possible, a British advocacy group, found that electric cargo bikes cut carbon emissions by 90% compared with traditional diesel vans and by a third compared with electric vans, according to the report. Air pollution was also significantly reduced. The bikes also delivered approximately 60% faster than vans in urban centers, had a higher average speed, and dropped off ten items an hour, compared with six items for vans. Meanwhile, unlike plastic, glass bottles are a fully sustainable and recyclable resource that also provides fantastic environmental benefits like a longer life cycle and lower carbon footprint. It is also made of natural raw materials and has an enhanced ability to preserve food.

This is precisely what we are doing at Vicinity. In April, we announced the launch of eSteam™, an innovation designed to rapidly decarbonize the highest source of emissions in major cities and commercial buildings. Our company is the first in the U.S. to electrify our operations, offering renewable thermal energy by installing electric boilers, industrial-scale heat pumps, and thermal storage at our central facilities starting in Boston and Cambridge, with other locations to follow.

In cities like Boston and Cambridge, buildings account for nearly 70% of all greenhouse gas emissions. Think about how changing the fuel source can have a profound impact, whether on coal, oil, natural gas, or combined heat and power (CHP) plants. Now is the time to transition from natural gas to renewable, clean energy. That is precisely what this new electrified system will be able to accomplish: modernizing how district energy is approached.

If we are serious about decarbonization, we must be bold and reimagine our industry. That’s what is being done at Vicinity Energy, and we are looking to best practices from similar steam loops in other parts of the world. Copenhagen, Malmö, and Drammen use district energy to meet and surpass their respective climate goals. Our goal is to be the first in the U.S. to lead in this space. Vicinity is uniquely poised to serve as a national leader in building decarbonization. The time for action is now. Our customers want it, our cities ask for it, and our planet demands it.

We are proud of what we are accomplishing.

eSteam™: a new, greener solution to combat carbon emissions

Many people are aware that pollution is a harmful downside to urbanization. What you may not know, however, is that 90% of our world’s population breathes polluted air every day, and 7 million people die from exposure to this contaminated air every year. This is a jarring statistic, and it sheds light on how carbon emissions serve as a silent killer in our world as the air we breathe can quickly and quietly turn lethal.

What is causing this?

Various factors contribute to pollution and climate change around the world. So, what are the biggest culprits, and how do they produce these carbon emissions? Building operations are responsible for 27% of global CO2 emissions each year, with another 20% coming from the construction and building materials required to create and maintain a building. These daily operational emissions generate lighting, heating, and cooling for a building, all essential elements of residential and commercial life. Additionally, many of these carbon emissions from buildings result from desperation to meet growing energy demands in conjunction with a lack of available clean energy options, as most of these establishments are several decades old.

What can be done?

One way to combat the increasing levels of carbon emissions within buildings is to integrate renewable energy systems into existing architecture through renovation and retrofits. It is equally important to ensure that new buildings’ systems are centered around using clean energy. Commonly known renewable energy sources include wind, solar, and hydroelectricity, and while these have proven to be effective in numerous circumstances, another, more cost-effective solution exists. eSteam™ generates power without emitting any CO2 and is the first-ever renewable thermal energy product in the United States!

Customers benefit from carbon-free eSteam™ generated with renewable electricity.

How eSteam™ works

Instead of fossil fuels, eSteam™, a new offering from Vicinity Energy, is fueled by electricity in a process known as electrification. Electric boilers, thermal storage, and industrial-scale heat pumps are installed at central facilities to generate steam. These devices employ renewable power from other carbon-neutral energy sources such as wind, solar, and hydro to produce energy used to power buildings in cities across the country.

Rather than start from scratch with sustainable infrastructure, eSteam™ leverages and builds upon existing infrastructure. This means that older buildings do not need significant investments to decarbonize their thermal energy load. eSteam™ uses Vicinity’s existing network of steam pipes, electric substations, and transmission lines to rapidly reduce carbon emissions. This electrification method is the most cost-effective and reliable way to accelerate the decarbonization of buildings and communities.

Benefits of eSteam™

  • With zero carbon emissions, users can meet their sustainability goals while simultaneously avoiding looming carbon taxes. Many cities throughout the U.S. have implemented or are considering implementing laws to lower buildings’ greenhouse gas emissions. These policies typically impose hefty fines for non-compliance. Because eSteam™ is carbon-free, users can have peace of mind knowing that their building will be greener while avoiding carbon fees and penalties.
  • eSteam™ offers total flexibility. Vicinity gives purchasers of eSteam™ the option to choose whichever renewable energy source they prefer to generate energy for their building. They can also select how much eSteam™ they wish to purchase annually. With these features, eSteam™ is customizable to various budgets and sustainability objectives.
  • eSteam™ is delivered through Vicinity’s district energy system, making it considerably more affordable than other onsite alternatives such as building in electric boilers. This access to wholesale power gives district energy an economic advantage over onsite equipment. It distinguishes eSteam™ as the most valuable and cost-effective method of improving a building’s carbon footprint.
  • Choosing eSteam™ to decarbonize your building eliminates the need to invest in costly capital projects. Therefore, you can avoid the financial burden of expensive renovations. This is because eSteam™ decarbonizes buildings by connecting to Vicinity’s district energy network, which is known for its maximum reliability and resiliency in a climate uncertain future.
  • eSteam™ users can gain potential points for LEED® and ENERGY STAR® certifications. These certifications are a great way to demonstrate your building’s commitment to sustainability.

Act now for the future

eSteam™ will be available nationwide shortly, and you can commit to making this change today. Making the switch to eSteam™ for a low-carbon future will not only aid in saving our planet from the adverse effects of carbon emissions, but it will also help decarbonize our communities so that fewer people find themselves sick or dying from breathing polluted air.

A Low-carbon future is here: combined heat and power (CHP) systems vs. onsite generation

It’s no secret that every institution plays a critical role in the fight against climate change. And while integrating renewable energy sources such as wind, solar, and hydro have become go-to options for many institutions, there is another, often overlooked solution: combined heat and power (CHP).

CHP, also referred to as cogeneration, has been quietly providing highly efficient electricity and process heat to vital industries, employers, urban centers, and campuses for decades, as noted by the U.S. Office of Energy Efficiency and Renewable Energy. Cogeneration is a proven, cost-effective tool for reducing emissions and furthering sustainability goals.

So, what does CHP entail, and how does it compare to onsite methods of heating and powering buildings?

CHP is an efficient process that combines the production of thermal energy (used for both heating and cooling) and electricity into one process. CHP systems can be configured differently, but they usually consist of a few key components: a heat engine, generator, heat recovery, and electrical interconnection, which are configured into an integrated whole.

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 is typically employed where there is a need for 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.

Although CHP is used in over 4,400 facilities across the U.S., many operations are still powered with conventional 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.

Energy efficiency

  • According to the United States Environmental Protection Agency, the average efficiency of fossil-fueled power plants in the United States is 36%. This means that 64% of the energy used to produce electricity at most power plants in the United States 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.
Diagram showing CHP as 45% more efficient than onsite generation.
How CHP systems compare to SHP systems

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.

Sustainability

  • In their CHP Guide, the EPA explains that 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.
  • Currently, the emissions prevented by a single 5 MW CHP system are equivalent to the annual emissions of more than 5,400 passenger vehicles.
Graphic showing C02 emissions comparison of conventional generation vs. combined heat and power
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.

Growth potential

  • 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 14 GW of additional technical potential for CHP across more than 5,000 U.S. colleges and universities alone.
Chart showing CHP capacity additions over time
Forecast of potential CHP capacity additions through 2026

Reliability and resiliency

  • 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.

A low-carbon future is here

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.

Vicinity Energy Launches Carbon-free Renewable Energy Product to Rapidly Decarbonize Buildings

BOSTON, April 7, 2022 – Vicinity Energy, a national decarbonization leader with the most extensive portfolio of district energy systems, launches eSteam™, a new innovation designed to rapidly decarbonize the highest source of emissions in major cities, commercial buildings. The company is the first in the U.S. to electrify its operations, offering renewable thermal energy by installing electric boilers, industrial-scale heat pumps, and thermal storage at its central facilities starting in Boston and Cambridge, with its other districts to follow.

Vicinity Energy centrally produces and distributes steam, hot water, and chilled water to over 230 million square feet of building space nationwide. To offer cost-competitive, renewable thermal energy to its customers, Vicinity will leverage and build upon its existing infrastructure, including its extensive network of underground pipes, electric substations, and transmission lines, which are notoriously hard to site and permit. Further, Vicinity has access to renewable power through the electric grid versus commercial buildings that purchase retail power, typically 2 to 3 times more expensive. Coupling the existing infrastructure with favorable pricing, Vicinity’s innovative approach to electrifying its operations will provide customers with a cost-effective decarbonization tool to meet sustainability goals without expensive onsite retrofits or significant capital investments.

Vicinity’s first electric asset will enter service in late 2024. At that time, the company will procure electricity from renewable, carbon-free energy sources such as wind, solar, and hydro to generate eSteam™.

By electrifying its operations and offering renewable thermal, eSteam™’s benefits include:

  • The ability to leverage district energy with guaranteed carbon-free emissions
  • Total flexibility in the amount selected and the renewable electricity source used to produce eSteam™
  • An affordable, cost-effective energy option to achieve sustainability targets
  • Carbon-neutral energy without substantial capital investments or ongoing, in-building
    maintenance of equipment
  • Additional potential points for LEED® and ENERGY STAR® certifications
  • Continued reliability and resiliency from the district energy system

Vicinity’s eSteam™ will provide customers with another option to cleanly heat and cool their buildings. Commercial buildings will no longer need natural gas boilers, eliminating unregulated gas stacks and unmonitored carbon emissions in our neighborhoods, reducing carbon and improving overall air quality.

“We’re thrilled to be the first district energy company in the United States to bring renewable thermal energy to our customers. Our operations are incredibly flexible, so we can quickly pivot to electrification and offer an innovative, affordable, carbon-free path for commercial building owners with eSteam™,” said Bill DiCroce, president and chief executive officer of Vicinity Energy. “This is game-changing for our communities.”

“We applaud the aggressive efforts of Vicinity Energy to decarbonize their Boston steam system,” says John Cleveland, Senior Advisor to the Boston Green Ribbon Commission. Vicinity Energy CEO Bill DiCroce has been a long-term member of the Commission. “Success on this front will make a major contribution to Boston’s goal of carbon neutrality by 2050 and set a bold example for other district energy systems across the country. It is a great example of what can be accomplished with public-private alignment.”

“There’s no place for gas in a climate-safe future,” said Andee Krasner, on behalf of Mothers Out Front – Boston. “We are excited Vicinity Energy plans to transition away from natural gas
to renewable, clean energy, which will enable commercial buildings to reduce carbon emissions and improve air quality in our communities.”

“Since we announced our commitment to net zero in the fall of 2020, we have evaluated many technical options and conducted numerous feasibility studies to develop a robust, executable Clean Energy Future roadmap,” states Kevin Hagerty, chief technical officer of Vicinity Energy. “We are procuring equipment today to make renewable thermal energy a reality within the next 24 months in Boston and Cambridge. And we’re not stopping there. We’ll be electrifying and introducing eSteam™ in other districts and continuing to innovate to meet decarbonization goals.”

“In cities like Boston and Cambridge, buildings account for nearly 70% of all greenhouse gas emissions,” said Matt O’Malley, Vicinity’s first-ever chief sustainability officer. “Vicinity is uniquely poised to serve as a national leader in building decarbonization. The time for action is now. Our customers want it, our cities are asking for it, and our planet demands it.”

About Vicinity Energy

Vicinity Energy is a clean energy company that owns and operates an extensive portfolio of district energy systems across the United States. Vicinity produces and distributes reliable, clean steam, hot water, and chilled water to over 250 million square feet of building space nationwide. Vicinity continuously invests in its infrastructure and the latest technologies to accelerate the decarbonization of commercial and institutional buildings in city centers. Vicinity is committed to achieving net zero carbon across its portfolio by 2050. To learn more, visit https://www.vicinityenergy.us or follow us on LinkedIn, Twitter, Instagram, or Facebook.

Media Contact
media@vicinityenergy.us

 

A clean energy future is in our grasp

Clean Energy Future Infographic

By taking action and implementing a host of innovative energy strategies and technologies, Vicinity is leading the way to building decarbonization.

The path to a greener future: electrifying district energy in Boston and Cambridge

Massachusetts is estimated to experience more and more 90+°F days each year, along with increased precipitation, flooding, and rising sea levels. This kind of drastic climate change threatens the health, safety and long-term well-being of our communities.

Recognizing that climate related impacts are directly tied to conventional fossil fuel use and rising greenhouse gas emissions, Massachusetts has bold plans in place to dramatically cut carbon. One of the Commonwealth’s biggest initiatives in its decarbonization roadmap is electrification – a move to leverage the electric grid’s growing adoption of more renewable sources (like offshore wind and solar) to power, heat and cool commercial buildings.

Electrification: the key to achieving Massachusetts’ carbon reduction goals

As part of its Clean Energy and Climate Plan (CECP), the Commonwealth of Massachusetts has a goal to decarbonize and reduce greenhouse gas emissions by 50% of its 1990 baseline by 2030 and reach net carbon zero by 2050. Electrification has been identified as the key tactic to meet this goal, and Boston aims to electrify 300-400 million square feet of commercial space.

However, substituting combustion-fueled technologies (like on site gas boilers and chillers) for electric technologies in commercial buildings is an expensive and time-consuming endeavor. So how can the Commonwealth’s goals be achieved quickly without incurring huge financial burdens on individual building owners? Thankfully, Massachusetts has a tool in its carbon-cutting toolbox: district energy.

Beneath the streets of both Boston and Cambridge, a robust network of pipes is delivering clean steam to over 230 commercial buildings, totaling 65 million square feet of building space – the equivalent of 54 Prudential Towers. Owned and operated by Vicinity Energy, the Boston/Cambridge district energy system generates and distributes clean, low-carbon steam used for heating, cooling, hot water, humidification and sterilization to some of the area’s premier hospitals, biotechnology and pharmaceutical companies, universities, hotels and entertainment venues, commercial space, and government facilities.

Through its Kendall Square cogeneration facility – the largest combined heat and power (CHP) plant in the New England area – Vicinity’s operations are already avoiding over 165,000 tons of CO 2 emissions annually – the equivalent of removing 35,000 cars from the roads each year. While this is certainly a big contribution, the company wants to do even more to reduce its carbon footprint. In line with the Commonwealth’s goal, Vicinity has a commitment to achieve net zero carbon emissions across its operations by 2050.

Vicinity recently integrated biogenic fuel into its fuel mix and is also exploring and testing large-scale use of batteries, hydrogen, and other low-carbon options which will have an immediate effect on the carbon footprint of the businesses we serve. Vicinity has also invested over $110 million in a series of green steam projects to improve efficiencies and further reduce environmental impacts in the Boston and Cambridge area.

While Vicinity’s district energy system is already highly efficient, the company is uniquely positioned to make an even greater positive impact on Massachusetts’ carbon goals. The solution is simple: install large-scale electric boilers and consume renewable energy from the grid as it becomes more readily available. Doing this will benefit each and every building connected to the district energy loop at a fraction of the cost to building owners. Representing 20% of the cities’ total electrification target, thermal electrification of the district system is the solution for rapid and cost-effective building decarbonization. By electrifying our systems, we can – in one swoop – bring Boston and Cambridge much closer to their goal.

The next energy inflection point

“The time to act on electrification is now… A new customer is added to the U.S. gas distribution system every minute – more than 400,000 new gas customers per year. U.S. utilities are adding approximately 10,000 miles of new pipelines and replacing 5,600 miles of existing gas mains annually. These new investments are being amortized over the next 30-80 years, long after we need to stop burning fossil fuels.” –Stephanie Greene, Principal, Building Electrification at Rocky Mountain Institute

The biggest opportunity to green and decarbonize buildings in Boston and Cambridge is to electrify the district energy system. Since the inception of district energy in the late 1800s, district energy systems have routinely migrated to cleaner, more efficient fuel sources. Now we’re at another inflection point and district energy is uniquely positioned to lead through this next energy transition to clean, renewable fuels.

The use of electric boilers and heat pumps in district energy systems is a proven solution. Today, the Stockholm district energy system in Sweden, for instance, uses 660 MW of heat pumps and 300 MW of electric boilers to generate steam, which is distributed throughout the city. It is estimated that altogether, Stockholm’s district energy system has reduced sulfur oxide and particulate emissions by two-thirds since 1986. Vicinity is the first district energy company in the US to put forth a similar plan and intends to convert its existing natural gas infrastructure to electric at its central Kendall cogeneration facility. Sitting next to a major electric substation, Vicinity can import renewable electrons and instantly decarbonize its steam. It’s the “easy switch” for electrification.

Vicinity currently plans to install 100-150 MW of electric boiler capacity by 2028 at Kendall, which can serve up to 75% of its current steam production requirements, or 45 million square feet of building space in Boston and Cambridge. Vicinity’s electrification plan is multi-pronged and will include:

  • Using existing waste energy from heat or river water in order to electrify 10% of its steam load, which is equivalent to 6 million square feet;
  • Installing large-scale electric boilers at the Kendall facility that will convert electricity to steam; and
  • Constructing an additional pipe crossing under the Charles River to connect Boston’s peak winter heating demand with steam generated at the electrified Kendall facility.

This plan will not only support both cities’ goals, it will also eliminate the challenge of property owners needing to retrofit individual buildings. Vicinity’s existing network of 65 million square feet of buildings will automatically benefit from this “easy switch” – saving businesses significant capital and allowing them to instead invest in efficiency and growth.

Looking to the future

Vicinity’s goal, in alignment with the Commonwealth of Massachusetts, is to decarbonize. Electrifying the district energy system is the fastest and most cost-effective way to help achieve this shared goal. Fossil fuels are not sustainable. Through advances in policy and leveraging the unique assets we already have, the Commonwealth is poised to lead the charge in our Nation’s efforts to reduce carbon emissions.

How district energy is supporting the transition from empty offices to thriving laboratories

Office space may be cooling down, but lab space is heating up

The COVID-19 pandemic has had a seismic impact on professional office work environments. Before the pandemic, most workplaces were strictly in-office, but now, the majority have shifted to work from home or a hybrid formula. This transition seems to be sticking, which means many office buildings in urban centers are now standing empty.

One type of work that cannot shift to a ‘work from home’ or hybrid model is laboratory research. Lab technicians require specific equipment and ideal environments that are only available in a physical lab. While the demand for office space has plummeted, the need for lab space is higher than ever. As a result, building owners and developers are converting empty offices into labs at an accelerating rate.

Lab space conversions are increasingly popular in areas experiencing notable life science booms, like Boston, Cambridge, Philadelphia, San Francisco, and San Diego. From 2009 to the end of 2019, the amount of lab space in the U.S. grew from 17 million to 29 million square feet. Even smaller cities like New Haven are “desperate” for more lab space because of a huge influx of life science enterprises on the scene. Boston is expected to complete construction for 2 to 3 million sq. ft. of new lab space by 2024. Lab space vacancy in Boston is currently at a mere 4.5%, versus overall office space vacancy, which is as high as 23%. Rents for lab space in the Boston area price at over $100 per sq. ft., making conversions extremely profitable. Furthermore, lab leases are generally 10 to 15 years long, giving landlords assurance that the conversion investments are worth it.

Lab space has several unique requirements for building owners to consider

Labs require a whole host of structural and service considerations. Efficient, effective laboratories require appropriate ceiling heights for duct work and equipment, enhanced airflow for the safety of technicians, and viable interior wall and ceiling space for increased mechanical and utility requirements. Developers must also keep in mind that different building codes and zoning requirements may apply, as compared to general office space. 

Perhaps most importantly, labs require high-quality and high-volume reliable 24/7 energy to provide power, cooling, heating, humidification and sterilization to ensure uninterrupted research, sanitized laboratory equipment and tools, and preservation of delicate procedures.

Evaluating your energy options

District energy

District energy is a great option to meet the unique requirements of lab space. Life science companies need huge volumes of high-quality, reliable thermal energy to support their critical operations, including specific ventilation, space temperature, humidity requirements, and the sterilization of laboratory tools and equipment. District steam energy has many advantages:
Without the burden of onsite combustion or maintaining chillers or boilers, district energy is a safer option than onsite infrastructure and also requires way less maintenance expense.

  • For sterilization and humidification, the CDC recommends steam sanitation over conventional sanitation methods.
  • District energy is more resilient and reliable even in the face of climate events.
  • District energy allows upper limits of heating to be adjusted, necessary for the specific conditions labs require.
  • A building can connect just a few floors to district energy if they only want to convert some floors to lab space.
  • District energy is a greener option and in cities where life sciences are booming, these same cities often have aggressive carbon emissions savings targets.
  • This energy solution also frees up valuable floor space, which allows life science companies to focus and leverage valuable square feet for their core operations.

Microgrids and distributed generation

A microgrid is an energy grid that typically provides power and thermal energy to a campus or group of buildings in close proximity to each other. In some cases, it makes sense for a research campus to develop an onsite independent energy solution to meet their critical energy needs. Microgrids can even store energy and use renewables. An independent energy developer with finance, engineering and construction management expertise can develop a custom distributed energy solution, from planning to implementation.

Alternatively, microgrids can also be integrated into district systems to provide even more energy resilience and reliability. Labs have extremely high thermal energy and power needs, making a microgrid solution (which provides both) a feasible and practical solution. Vicinity has developed and operates microgrids for multiple clients – including for a global biotechnology company.

Onsite boilers/chillers

Pairing onsite boilers and chillers for thermal energy and engaging a traditional power utility for electricity is often the first option that occurs to many commercial companies and building owners. However, most underestimate the cost and maintenance that goes along with such a decision or the risks to reliability. Onsite chillers and boilers require substantial upfront capital and ongoing maintenance costs. They take up valuable space in the building that easily could be used for core operations instead. Buildings with boilers also run the risk of insufficient steam pressure and poor steam quality. Labs require constant airflow in order to maintain a sterile environment – they need approximately five times more air changes than typical office buildings, which is why they tend to put more strain on the HVAC equipment to heat and cool all the fresh air being brought in. More air changes and ventilation requirements puts enormous pressure on boilers, especially in the winter, as it decreases the life of boilers, increases fuel costs, and means more repairs and maintenance. Not only does district energy or high-pressure steam from a microgrid provide humidification control, hot water, and heat, but it also allows for the sterilization of equipment. More sustainable energy solutions, like district energy and microgrids, often cost less from a lifecycle perspective and are more valuable in the long run.

Looking ahead

As office spaces turn into labs, an important component that life science companies must keep in mind are the carbon goals of the cities they operate in. Many cities have aggressive carbon reduction goals which must be taken into account when planning new commercial and industrial spaces.

Furthermore, many life sciences companies have goals for greening their own operations, sometimes above and beyond city and/or state guidelines. To attract life science companies and stay current with environmental policies, buildings must not only provide a reliable and cost-effective energy solution, but also one that can adapt to changing, and increasingly more stringent, sustainability requirements. This is a tricky matter when it comes to onsite energy generation, as any equipment would likely have to be expensively retrofitted in the future to meet greening initiatives. District energy, on the other hand, can rapidly green its operations with updates to its central plants, with all customers connected to the district system subsequently receiving cleaner energy. Incorporating district energy into any laboratory or office to lab conversion plan ensures not only that new life science tenants will have the HVAC, environmental and space conditions and capacities they need, but also that the building will continue to get greener over time – keeping up with corporate and government sustainability objectives well into the future.

Vicinity Energy Implements Renewable Biogenic Heating Oil, Transforming Food Waste into Energy and Creating Jobs

PHILADELPHIA, April 13, 2021 – Vicinity Energy, owner of the nation’s largest portfolio of district energy systems, announces it has signed a long-term fuel supply agreement with Lifecycle Renewables, a Boston-based firm that produces LR100™, a unique biogenic fuel derived from waste vegetable oil and fats discarded by the food service industry. The partnership will provide Vicinity with expanded access to this clean, renewable fuel to replace conventional fossil fuel oil in its district energy facilities, a milestone in the company’s roadmap to reach net zero carbon by 2050. The partnership also enables the immediate expansion of Lifecycle’s operations in Philadelphia, creating local jobs and supporting economic growth.

Vicinity Energy centrally produces and distributes steam, hot water and chilled water to over 230 million square feet (nearly eight square miles) of building space nationwide. Now, in partnership with Lifecycle Renewables, Vicinity will begin to integrate LR100™ across each of its facilities over time. Permits have already been acquired and the biogenic fuel tested in Philadelphia, with implementation in Boston on the immediate horizon and other districts to follow. A truly circular solution, the wastes discarded by the local food service industry will now be used to heat and cool businesses and institutions in the same city.

The benefits of transitioning to LR100™ include:

  • Significantly reducing Vicinity’s distillate fuel use, cutting carbon emissions by 12,200 tons, or the equivalent of removing 2,650 cars from Philadelphia’s roads each year
  • Recycling 600,000 gallons of food service industry waste oil (the average person consumes approximately 1.5 gallons of oil a year) into energy, that would otherwise be discarded in landfills or city sewers
  • Expanding Lifecycle Renewables’ operations in Philadelphia, resulting in job creation, recycling programs and cost savings for local restaurants, and sustainability benefits for the community
  • Reducing greenhouse gas emissions by over 80% versus distillate fuel, improving local air quality through reductions in nitrogen oxides, sulfur oxides and particulate emissions compared to traditional heavy fuel oils

“Vicinity is excited to partner with Lifecycle Renewables to accelerate our shared mission to reduce the carbon footprint of the communities we serve and deliver sustainable, local and circular energy solutions to our customers in support of nationwide carbon reduction goals,” said Bill DiCroce, president and CEO of Vicinity Energy. “Lifecycle Renewables has a proven record of delivering renewable heating oil that aligns with our Clean Energy Future roadmap, and we’re proud to move forward with this biogenic fuel supply agreement to support a cleaner, healthier environment.”

“We chose to partner with Vicinity because they are the most forward-thinking district energy company in the nation,” said Rory Gaunt, president and CEO of Lifecycle Renewables. “Their ambitious march towards net zero carbon emissions provides Lifecycle Renewables an opportunity to have a positive environmental impact on hundreds of millions of square feet of building space where our fellow Americans live, work, and play. We look forward to growing our partnership in response to Vicinity’s increased demand for our renewable fuel. Our team is energized by the opportunity to supply renewable heating oil to Vicinity, as they continue on the path to net zero carbon emissions by 2050.”

About Lifecycle Renewables
Lifecycle Renewables is an integrated food waste recycling and renewable fuels company. Using recycled waste oils and fats from the food service industry, Lifecycle Renewables produces LR100™, a renewable heating oil. LR100™ is a drop-in fuel for oil-capable facilities that competitively replaces fossil fuels. Environmental authorities consider LR100™ to be carbon-neutral, and users of the fuel realize significant emissions reductions. With focus on providing the highest quality service to our restaurant and food-production partners, Lifecycle Renewables seeks to create closed-loop waste-to-energy solutions for cities across America. Lifecycle Renewables is now serving restaurants in New England, Philadelphia and the Delaware Valley. Learn more at: lifecyclerenewables.com

About Vicinity Energy

Vicinity Energy is a clean energy company that owns and operates an extensive portfolio of district energy systems across the United States. Vicinity produces and distributes reliable, clean steam, hot water, and chilled water to over 230 million square feet of building space nationwide. Vicinity continuously invests in its infrastructure and the latest technologies to accelerate the decarbonization of commercial and institutional buildings in city centers. Vicinity is committed to achieving net zero carbon across its portfolio by 2050. To learn more, visit https://www.vicinityenergy.us or follow us on LinkedIn, Twitter, Instagram, or Facebook.

Media Contact
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