A pivotal chance for Philadelphia’s climate future

One year ago, the Schuylkill River had just normalized after rising to catastrophic levels following Hurricane Ida. The ensuing floods that swallowed up the Vine Street Expressway, ruined homes, and businesses, and took multiple lives, provided a potent reminder that Philadelphia, nestled between two rivers, is uniquely susceptible to the impacts of extreme weather resulting from climate change.

If nothing else, a look back at the historic flooding should serve as a reminder of the need to advance prescriptive policies at the local level that curtail the negative effects of climate change, reduce greenhouse gas emissions, and protect Philadelphia’s health and infrastructure. The recent Supreme Court decision undermining the EPA’s ability to regulate emissions on a national level amplifies the need for cities like Philadelphia to take charge of their climate futures.

Thankfully, Philadelphia has a policy road map in place. In 2021, Mayor Jim Kenney and City Council made a “net zero” pledge to achieve carbon neutrality by 2050. It’s an ambitious goal that’s drawn support in other cities such as Boston, New York, and San Francisco. Coinciding with the pledge, the city also released a draft of its Climate Action Playbook — a blueprint of data-driven recommendations and expertise to suggest ways to reduce climate change’s impacts through an equitable and inclusive lens.

During Climate Week NYC 2022 and Global Clean Energy Action Forum in Pittsburgh, we want to spotlight Philadelphia and cities around the world that are at an inflection point for environmental progress. While municipalities need to look forward to innovations and policies, there are also existing programs and technologies that could be better harnessed by individuals and embraced by local governments to make a significant difference in achieving our climate goals.

For example, on a small scale, look at how electric cargo bikes are increasingly diminishing the environmental impact of urban deliveries. The British advocacy group Possible put out a study last year that found electric cargo bikes reduced emissions by 90 percent compared to diesel vans and by one-third compared to electric vans. Plus, the bikes were more efficient from a delivery standpoint, making more than 50 percent more deliveries than vans.

Although car emissions get a lot of publicity, building emissions are a bigger culprit. According to Climate Action Playbook, the buildings of Philadelphia emit a whopping 75 percent of the city’s total carbon footprint—triple the total emissions from all modes of transportation.

What cargo bikes are doing for deliveries, Vicinity is doing for building emissions. In April, we announced the launch of eSteam™. It’s a technology specifically designed to rapidly decarbonize this critical area of climate change. We will offer renewable thermal energy by installing electric boilers instead of the traditional gas-burning variety and industrial-scale heat pumps and thermal storage at our central facilities to provide sustainable and reliable service. Although eSteam™ will first be available in Boston and Cambridge, Philly will soon follow.

Investing in renewable energy sources will serve to increase energy stability and reliability in the face of recent climate and fossil fuel-related emergencies. At this week’s climate event in NYC, leaders noted that renewables would ensure resilience and security beyond driving economic growth.

We are committed to using innovative technology to upgrade how we create steam to serve downtown Philadelphia. We’ve already begun scoping and designing our systems for decarbonization. We are beyond excited with the overwhelmingly positive response to our plan among advocates, policymakers, and customers.

Simply put, Philadelphia is on track to become the largest decarbonized district energy system in the U.S.

At Vicinity Energy, we constantly look at what leaders are doing worldwide for inspiration and guidance on combatting climate change. Similar thermal energy systems surpass their climate goals in places like Copenhagen, and we need to do more in Philadelphia. Vicinity is innovating, implementing, and solving decarbonization challenges, “Getting It Done” with district energy.

As Climate Week NYC hails “Getting it Done,” Vicinity Energy is solving renewable energy challenges

With the most prominent global climate event kicking off, Climate Week NYC 2022, the environmental community has genuine excitement and optimism. The optimism is spurred by the passage of the Inflation Reduction Act (IRA), recently signed into law by President Biden. Its climate change and energy innovation elements represent Congress’s most significant climate investment ever made. In Massachusetts, this is coupled with Governor Charlie Baker signing the “Act Driving Clean Energy and Offshore Wind” bill into law – which outlines the roadmap for how Massachusetts will meet its ambitious climate targets and clean energy goals for 2050 – potentially further solidifying New England’s status as a national leader. 

While the IRA is projected to reduce the country’s carbon emissions by roughly 40% by 2030, Massachusetts businesses, government, and the climate communities continue to grapple with how to reach net zero emissions. It will be heartening to see Climate Week’s organizers bring together the world’s most influential leaders in climate action to explore the impact of buildings and infrastructure on climate. Still, event stakeholders need to capitalize on recent momentum while staying focused on what will have a tangible, real-world impact. 

Today, buildings represent nearly 40% of greenhouse gas emissions and a third of global energy demand, so it’s critical that net zero buildings be powered by renewable energy. Given the outsized role that commercial buildings play in emitting carbon in major cities, carbon-free renewable energy technology can provide a one-stop- shop for institutions considering the right approach with enforceable emissions performance standards. As the first company of its kind in the U.S. to electrify its operations, we are committed to 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 additional locations to follow. Not only will this technology reduce a building’s carbon emissions, but customers will also be able to achieve their ESG goals while complying with regulations.   

With district energy, thermal energy is produced at a central facility and distributed to individual buildings via underground piping, eliminating the safety risks associated with onsite generation. District energy systems are agnostic to fuel type. This fuel flexibility enables the use of lower-carbon, local sources of energy, increasing the resiliency and security of the network and the health of our communities. Decarbonization upgrades to Vicinity’s centralized facilities immediately benefit the entire network. As more new renewable technologies and sources come online, district energy systems will easily integrate into existing distribution systems.

In 2024, Vicinity’s first electric asset will enter service. At that time, the company will procure electricity from renewable, carbon-free energy sources such as wind, solar, and hydro to generate our steam product. Unlike onsite generation – which intrinsically involves onsite combustion as part of the energy generation process – district energy is a much safer alternative. 

President Biden’s pledge to reduce U.S. emissions from 2005 levels – by at least in half within the next several years – and achieve net-zero emissions by 2050 is ambitious. One key to understanding how Greater Boston institutions will reach these goals can be found in the upgraded and innovative use of district energy. As Climate Week NYC 2022 celebrates recent progress and debates the opportunity to transform traditionally hard-to-abate sectors, it will be necessary for thought leaders to recognize the radical shift that has recently occurred within our industry. Commercial building owners in Boston already see the difference.

We look forward to demonstrating this technology’s role in more significant decarbonization debates as we expand into additional markets in the near future.

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.

District energy electrification: the new disruptor in a decarbonizing world

Today, buildings generate a substantial amount of the world’s annual carbon emissions – 40%, to be exact. And while historically it has been difficult and costly for buildings to comply with decarbonization efforts, district energy systems are rising to the challenge. District energy is the new disruptor in a decarbonizing world.

Agile, fuel-agnostic district energy systems can easily switch to lower-carbon, local energy sources at their central facilities. Because these systems deliver thermal energy to multiple buildings and millions of square feet at a time, any swap to lower-carbon fuel sources has a much wider-reaching green impact and costs building owners significantly less than building-by-building retrofits. Making changes or upgrades to conventional onsite boilers or chiller plants at each building is a much more time-consuming and expensive endeavor.

In this way, the electrification of district energy systems is a game changer for the climate, our communities, and our collective future. Such a game changer, in fact, that electrification is the backbone of Vicinity Energy’s commitment to reach net zero carbon emissions across all its operations by 2050.

Electrifying Boston, Cambridge and beyond

In the first initiative of its kind in the United States, Vicinity is already in the process of electrifying our district energy facilities in Boston and Cambridge. Modeled after best-practices in other leading European and Canadian cities, this approach includes the installation of electric boilers, industrial-scale heat pumps, and molten salt thermal battery storage at our central facilities.

Our ability to access power allows us to keep costs down, while also delivering superior reliability. By purchasing electricity from renewable, carbon-neutral energy sources like wind, solar, and hydro, we can provide a cleaner energy product. But we’re not stopping there: over time, we’ll apply our approach to the rest of our districts, with Philadelphia closely following Boston and Cambridge.

The investments Vicinity is making at our central facilities will immediately green the energy serving customers throughout Boston and Cambridge.

So, what will these new investments actually look like and how will this work? The roadmap to net zero includes several key components, as outlined in our latest white paper:

  • Producing renewable energy at transmission level rates and integrating them into our fuel mix
  • Electrifying energy generation by converting our operations to electric boilers and heat pumps
  • Installing molten salt thermal batteries, which will allow us to buy energy when it’s most affordable and store it for use during peak demand

Our phased plan for the electrification of our Boston and Cambridge facilities serves as a sustainable blueprint for our districts around the country, as well as other leading district energy companies like Con Edison in New York City who are looking to us for best-practices in creating their own path to decarbonization.

As Vicinity’s Chief Sustainability Officer Matt O’Malley so aptly stated in an interview: “We only have one choice—that’s to be bold on climate. Vicinity is doing it.”

Electrification success overseas

Vicinity’s plan is built upon best practices, proven technologies, and investments in sustainable infrastructure to reduce our overall environmental impact. And while our strategy is the first of its kind in the U.S., the electrification of district energy systems has proven successful in various European and Canadian cities throughout the years. We plan to build from these best practices and make a similar impact nationwide.

When Finland’s capital Helsinki sought a way to heat the city as sustainably as possible, they launched the international Helsinki Energy Challenge in February of 2020. Finland, like much of the European Union, has ambitious climate regulations in place that require the country to be carbon neutral by 2035, and place a ban on coal from energy production by 2029. With 90% of buildings in Helsinki connected to the city’s district heating system, the outcome of this contest would prove significant.

The solutions that took the prize? Converting to renewable energy sources and electrification.

In conjunction with the shift to renewables in Helsinki’s district heating networks, the contest’s winning solutions are designed to harness renewable electricity from heat pumps to drive the city’s transition to carbon neutrality.

Kaisa-Reeta Koskinen, Manager of the Carbon Neutral Helsinki project, commented on the urgency of the city’s transition: “We have to get rid of fossil fuels fully, and quite quickly. If at this point we start investing into fossil fuels, even if they are not as bad as coal, it is going to be a bad investment.”

Almost a decade earlier, a similar transition took place in the heating networks of Drammen, Norway, with notable success. In 2011, Star Renewable Energy installed the world’s largest 90°C natural heat pump in conjunction with the district energy system in Drammen. The heat pump extracts heat from the cold water in an adjacent fjord to heat homes and businesses across the city.

Since January 2011, the project has delivered over 15MW of heat for the Drammen community of 60,000 people. The city has realized an annual savings of around €2m a year, as well as 1.5m tonnes of carbon — the equivalent of taking more than 300,000 cars off the road each year.

It’s time for the U.S. to take inspiration from these success stories overseas and work harder to reduce our reliance on fossil fuels to heat, cool, and power buildings. The use of electric boilers and heat pumps in district energy systems has long been acknowledged as a proven solution for rapid and cost-effective building decarbonization in urban centers around the world.

Driving change with strategic private-public partnerships

It’s clear that strong policy, regulations and collaboration among organizations, as evidenced by the Helsinki Energy Challenge in Finland, encourage and spur innovative and sustainable solutions to decarbonize our cities. The success of district energy electrification in Drammen demonstrates the power of public-private partnerships (PPP) to achieve widespread decarbonization objectives.

Public-private partnership is essential to the development and evolution of decarbonization programs. The private sector’s knowledge of emerging technologies, in combination with progressive policymaking in the public sector, can accelerate the adoption of greener products and services.

European and Canadian cities such as Vancouver, Helsinki, Drammen and many more serve as testament to the success of leveraging district energy to meet aggressive emissions targets through electrification.

Through advances in policy and utilizing the unique assets we already have, Vicinity Energy’s electrification strategy is poised to lead the charge towards a clean energy future.

To learn more about our electrification strategy, get your free copy of our latest white paper today.

The green way for the bay state to keep warm – and it’s right under our feet

Massachusetts’ new commission on clean heat doesn’t need to look far for a carbon-cutting solution

On the occasion of Climate Week, the Baker Administration made a landmark, first-in-the-nation move to establish a Commission on Clean Heat. Furthering Massachusetts’ national leadership position in pursuit of zero carbon emissions, the Commission’s aim is to greatly reduce emissions from heating fuels. This is a critical task, as nearly 70% of the Commonwealth’s greenhouse gas emissions come from buildings.

While Massachusetts has some of the most ambitious carbon-slashing plans in the U.S., a specific action plan for how to execute these plans remains a hotly debated topic. Electrification, which eliminates onsite fuel combustion in buildings, is the main goal of the new Commission. But there is a large gap between the hundreds of buildings currently converted to electric heat each year, and the stated goal of hundreds of thousands converted each year. It’s no small task for the new Commission on Clean Heat to advise the state on how to reach its ambitious, important carbon reduction plans without burdening residents or building owners with costly retrofits to their properties.

However, there is an accessible pathway to electrification that currently exists under Bostonians’ feet: district energy. District energy is a form of energy delivery in which steam is generated at a central facility and then distributed through a network of underground pipes to buildings, rather than those buildings using onsite boilers, individually combusting, to produce heat. Much of Boston and Cambridge’s most densely populated urban areas are already served by district energy steam. In fact, Vicinity Energy, Boston’s district energy provider, has existing infrastructure that serves 65 million square feet of buildings. Vicinity is currently pursuing its own aggressive electrification plan at its centralized facility in Kendall Square, which could instantly convert all connected buildings to low-emission heating solutions without any new equipment or infrastructure. This is an easy, fast, and cost-effective alternative to retrofitting hundreds of buildings with electric heat pumps.

“It is important for the Commission to consider all options when making their recommendations to Governor Baker next November,” said Bob Rio, Senior Vice President of Government Affairs at Associated Industries of Massachusetts, the state‘s largest business group. “Retrofitting thousands of buildings individually could take decades, and would be a costly burden for business and industrial customers. District energy can be an important tool to help us achieve our goals and it should be a big topic of discussion for the Commission.”

Vicinity has long been working with city and state legislators and stakeholders to educate and build awareness of this critical resource to rapid greening of the region’s heating operations; the benefits are substantial. Hundreds of property owners would not have to invest in re-equipping their facilities, and decades of construction could be avoided.

In the wake of Climate Week, there’s no better time to work together to move closer to the Commonwealth’s important climate goals. Luckily, with existing infrastructure, the way to achieve these goals might already lie right under our feet.

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 the energy industry is forging the path to net zero

In 2018, 33.1 gigatons of energy-related carbon dioxide (CO2) were emitted globally, underscoring the need for immediate action to reduce this staggering number. Put another way, that’s 33.1 billion metric tons, a collective mass equal to 66 times that of all humans on earth.

As greenhouse gas emissions have continued to increase, energy utilities have sought to reduce the amount of CO2 that is released into the atmosphere, as a result of burning traditional fossil fuels.

To combat the rising CO2 levels, many utilities have committed to reach net-zero carbon emissions by either 2030 or 2050. For some, switching to fuel alternatives with lower emissions, such as natural gas, is an interim step to get there, while others look to renewable energy sources, such as wind and solar. While there are many possible paths to reach net zero, one thing is clear: time is of the essence.

But what exactly does net zero carbon emissions mean, and which method of energy production will yield the greatest environmental benefits? Let’s take a closer look.

What is net zero?

The term “net” zero does not mean there are no carbon emissions emitted. At the moment, all fuel-burning energy generation methods emit some carbon. However, after these emissions have been reduced as much as possible, companies can offset the remaining emissions by investing in assets that absorb carbon, such as forests, carbon capture, or other emerging technologies. Those assets effectively cancel out the carbon emissions being produced, resulting in net zero carbon.

Harnessing the power of renewables

Recognizing this need for change, energy utilities have sought alternatives to traditional generation sources to enable continued provision of their essential services. Unlike fossil fuels, such as coal and oil, renewable energy resources are neither extractive, nor reliant on a single resource that depletes over time. Wind, solar, and biofuels are all renewable resources that utilities are investing in to reduce their carbon footprint.

One method for reducing CO2 emissions that can already be utilized is combined heat and power (CHP). Unlike traditional power plants that take excess heat produced during power generation and discard it, CHP efficiently harnesses that excess heat as thermal energy that can be used to keep buildings warm or cool, humidify the air or sterilize equipment. By taking advantage of this resource, utilities can conserve fuel, rather than burn more to produce heat, effectively cutting CO2 production dramatically.

Perhaps what is most exciting about this energy source is that CHP generators can also burn biofuels, such as waste vegetable oil from restaurants or organic matter. By fueling CHP with biofuels, the total amount of carbon emissions produced during energy generation can be additionally decreased.

No matter the method, utilities that choose to utilize the energy potential of renewable resources will see a reduction in carbon emissions. When renewables are combined with generation methods such as CHP systems integrated with biofuels, even greater benefits can be achieved.

The road to net zero

A broad swath of energy generators are shifting to renewables to replace natural gas, especially utilities. Challenges remain, however, especially when it comes to transforming the entire grid to be more environmentally beneficial.

While wind and solar are good renewable resources, they are reliant on ideal weather conditions to produce at maximum efficiency. When there is no wind or sunlight, utilities must turn to other energy sources, such as natural gas, to continue supplying power to the facilities they serve. Although a cleaner resource than burning coal, natural gas does emit CO2 and still contributes to greenhouse gas buildup. Regardless of weather conditions, customers must continue to receive services, and falling back on traditional fuel sources that will produce emissions while providing necessary services is a challenge to decarbonization efforts.

Another obstacle that utilities face is upgrading existing infrastructure. For many utilities, their incumbent grid technology is outdated and ill equipped to accommodate alternative fuel sources that previously were not used or available during the original infrastructure’s development. Because of this, utilities are tasked with not only transitioning to renewables, but also updating systems that have known no other fuel source and were designed for a one-way distribution path. Utilities also have to take into consideration that the majority of U.S. communities leverage onsite boilers for residences and buildings, which means every end user will need to have their infrastructure updated to convert to greener fuels and generation methods as well. The hurdle is a high one – accompanied by a price tag that utilities will have to take into account.

Other facilities have turned to natural gas as a bridge fuel as they shift away from fossil fuels to greener solutions. Though as previously mentioned, natural gas is not carbon-free, although it has a lower carbon footprint than coal or fuel oil. Additionally, those who employ natural gas as a main energy resource may consider transitioning completely away from it to be a daunting challenge. Similar to electric utilities, these organizations will need to seek alternative fuel sources, while also upgrading existing infrastructure, in order to reach net zero. 

In contrast, district energy companies can more quickly transition to renewable fuels and technologies through upgrades at their central plants. Unlike other conventional utilities, upgrades to the distribution system are not required. The improvements made at these central plants, whether this is integrating renewable fuels or converting boilers to renewable electricity, will then benefit all the buildings connected to the district system, dramatically reducing carbon emissions. By nature, district energy is typically found in urban environments, which eliminates the need to transport energy over long distances to customers. It is highly reliable, cost-effective and cuts the amount of fuel that is required by individual buildings using onsite generation. Utilizing renewable resources, energy efficient equipment and green technology at the central plant means that all connected buildings connected to the district become greener. In effect, a district energy system can dramatically reduce the carbon footprints of entire cities relatively quickly and easily.

A greener path

Time is often an overlooked resource, as it is easily spent, but it can never be recouped. As we look to the mid-century, it is crucial that energy utilities explore and implement renewable strategies to reach net zero carbon goals. It is already estimated that global carbon emissions are expected to increase by 0.6% per year until 2050, underscoring the battle against time itself. That equates to more than half a billion additional metric tons per year above 2018 levels.

By harnessing the power of renewable resources, energy providers can dramatically cut carbon emissions and diminish the climate impact of their operations, ushering in a healthier, greener world for generations to come.

Hospitals and healthcare facilities turn to district energy

Why district energy has become the optimal energy choice

Hospital administrators have one key concern that drives all decision-making: how to provide the highest quality care to their patients cost effectively and efficiently. Each and every business decision a hospital makes reflects this objective and a bad one can truly mean life or death – especially in today’s challenging COVID-19 environment when cash is tight, and margins are thin. Hospital leadership is feeling the pressure to think creatively of ways to reduce costs, while also maintaining high standards of patient care and safety.

So why is this leading more hospitals to turn to district energy? In short, hospitals need to look for trustworthy partners, vendors and service providers so they can outsource non-core functions and focus on what they do best – caring for our communities. By relying on district energy experts to manage energy infrastructure and ensure an uninterrupted thermal energy supply, healthcare providers can focus on their core priorities and trust that their energy needs are being met. There are many more reasons why district energy has become the preferred energy solution for healthcare facilities.

How district energy frees up cash and operating budgets

First, with rising costs and shrinking margins, especially during this unprecedented global pandemic, hospitals need to look for each and every potential opportunity to save money without compromising care. Cash flow is a top priority for healthcare executives and there is a growing and perceptible urgency for cost control. Not to mention, making the wrong energy choice can be expensive, especially when your area of expertise is running a hospital and not a power plant. Hospitals are the second most energy-intensive commercial building type in the US according to the US Energy Information Administration (EIA), so without proper management from a reliable partner, energy can be a big line item expense and a major drag on budgets.

One of the primary financial benefits of district energy is the avoidance of operating and maintenance (O&M) costs associated with onsite mechanical rooms, boilers and chillers. This can save hospitals up to 30 percent per year in their operating budgets. In addition to operating expenses, investing in energy infrastructure can cost millions in upfront capital. If hospitals have cash on hand, they have to make tough decisions, weighing opportunity costs and choosing between patient care equipment or other infrastructure investments related to energy or otherwise. Without cash on hand, healthcare facilities are faced with borrowing costs that put pressure on the returns of their investments. With district energy, not only do hospitals save on operating expenses, but many district energy companies are also willing to invest alongside their customers, reducing or eliminating any upfront costs of connecting to the system.

With 99.99% reliability, district energy supports optimal patient care

Second, hospitals have unique energy needs. Not only do they operate 24 hours a day, 365 days a year, but they also require thermal energy for heating, cooling, and, importantly, sterilization to ensure patient safety. This means they need ultra-reliable energy they can count on. While service interruptions are a disturbance to any business, any disruption to energy delivery to a hospital can have dire consequences. Here is what Bob Biggio, the Boston Medical Center’s Vice President of Facilities and Support Services, had to say about the importance of reliability:

“As a medical campus treating a diverse range of healthcare needs, it is absolutely vital for Boston Medical Center to maintain continuous and consistent heating, sterilization and comfort levels. After careful analysis of all of our potential options, it became clear that district energy would not only best support our operations, but will also help us to achieve our aggressive sustainability goals.”

District energy is 99.99% reliable, better than any other alternative, particularly during unexpected grid outages due to extreme weather events. With onsite fuel storage, the ability to integrate various fuel types, and multiple generating assets, district energy systems have redundancies built in to support 24/7 energy delivery, even in the event of a black-out. This flexibility and redundancy contributes to the energy security of hospitals and in turn, the communities served by district energy. In addition, most operators of district systems have the ability to isolate sections of their network to perform maintenance or protect the broader system in the event of an emergency. This is reliability that hospitals require.

How district energy is supporting sustainability goals

And finally, district energy has the added benefit of being efficient, low carbon, and sustainable. While most hospitals today are hyper focused on patient care and costs, many, like the Boston Medical Center, are also staying committed to their sustainability targets. District energy is fuel agnostic and leverages many different and diverse sources to generate the thermal energy that serve hospitals’ heating, cooling and sterilization needs. For example, many district energy systems leverage combined heat and power (CHP) plants, which not only generate electricity, but the by-product (steam) is then utilized for thermal energy. This recycled “green steam” is a cost-efficient, reliable way for hospitals to stay true to their carbon reduction objectives without compromise.

For these reasons, hospitals are more and more frequently turning away from natural gas and on-site mechanical rooms and relying on resilient district energy to supply their thermal energy needs, save millions in upfront capital costs and direct their operational focus to patient care.