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Tag: Sustainability

What is district energy? Everything you need to know.

Posted on by Bella Pace

How district energy is helping commercial buildings and local communities

District energy uses local resources to tackle broad, global energy and environmental challenges. But what is it, exactly?

District energy uses a centrally located facility, or facilities, to generate thermal energy – heat, hot water or chilled water – for a number of nearby buildings that in effect form an “energy district.” These resources are transported through underground pipes to meet the needs of communities, cities, or campuses – such as colleges, hospitals, airports, or office parks. This provides multiple advantages:

  • Freedom from asset ownership and maintenance, including associated costs
  • Energy pricing stability and cost effectiveness
  • More efficient energy delivery
  • Greater reliability and redundancy in energy supply
  • Reduced carbon footprint

The International District Energy Association created this great short video that provides a solid introduction to how and why district energy works so well:

Although district energy has an impressive history (did you know it was originally used to heat the baths of Ancient Rome?), it’s also a constantly evolving technology that uses innovative techniques, fuel sources and infrastructure to provide more efficient, resilient, and environmentally responsible energy than conventional generation sources. According to the United Nations Environment Programme, district energy systems “typically reduce primary energy demand in heating and cooling by 50%,” and can achieve operational efficiency of up to 90%.

District energy is cost-effective

So, is district heating better than onsite energy generation?

There’s a common misconception that onsite energy generation is cheaper than connecting to a district energy network. This faulty conclusion usually arises when the start-up costs of generating energy onsite and the ongoing operations and maintenance (O&M) expenses associated with onsite infrastructure are not considered.

Because district energy customers receive a finished thermal product, they don’t need to pay the millions in upfront capital costs for installation of chillers and/or boilers or the ongoing costs to maintain their own equipment. Onsite heating and cooling infrastructure can represent one of the largest startup costs for a new building and are repeat offenders when it comes to breakdowns that require pricey repairs. It’s important to conduct a lifecycle economic comparison between district energy and onsite generation when comparing the two.

By evaluating variable energy costs, recurring fixed operating costs and upfront capital costs, oftentimes, district energy is the optimal economic solution.

District energy also takes up much less space in a building than onsite generation would. On average, district energy connection infrastructure requires about the same amount of space as a parking spot, which means buildings can make smart, economic use of all the space they would have needed to dedicate to boilers, water towers, cooling systems, thermal storage, and more.

District energy is reliable

One thing that makes it so reliable is that district energy systems have built-in redundancy within its central plants and networks, meaning they can leverage multiple generating assets and fuel, power and water sources. If a piece of equipment or utility source is compromised or experiencing any issues, the system can continue to operate by drawing from its back-up sources and infrastructure. Compare that to what happens to a building’s operations if an issue occurs with an onsite boiler – no heat or hot water until it’s fixed. In fact, a building’s district energy service could eliminate the need for onsite N+1 redundancy.

As global climate and weather conditions become more extreme, the ability to ensure reliable energy even during severe conditions is a growing concern. Because many district energy grids can black-start (meaning they can restart without the aid of external electrical transmission) and can use a range of fuel sources, such systems can maintain a high level of energy uptime even during extreme weather events.

District energy is more reliable in terms of its components and delivery too. With insulated carbon steel conduit piping encased in concrete, a district energy network’s distribution system is more robust and resilient than conventional utility alternatives.

District energy is sustainable

With climate change in full force, every decision we make plays a critical role in healing the planet and minimizing our negative impact on the environment.

Energy production is responsible for a substantial portion of the greenhouse gases that trap the sun’s heat within the earth’s atmosphere. Fossil fuels, such as coal, oil, and gas stand out as the most predominant culprits for climate change, as they are responsible for over 75 percent of global greenhouse emissions and 90 percent of all carbon dioxide emissions. These numbers paint an urgent picture: everyone must play their part in cutting emissions in half by 2030 and reaching net-zero emissions by 2050.

Despite these concerns, a clean energy future is well within reach. The International Renewable Energy Agency (IRENA) estimates that around 90 percent of all decarbonization solutions in 2050 will involve harnessing green energy from renewable sources to improve energy efficiency and supply innovative electrification technologies.

By centralizing and aggregating the production of heat, hot and chilled water to multiple buildings, district energy cuts down on the amount of fuel that would be required by individual buildings using onsite generation, and the resulting carbon emissions. Furthermore, it allows for faster, more complete transitions to clean energy sources as they become available: district energy systems can employ renewable energy sources, like biofuels, wind, solar, and hydro, to produce carbon-free steam and maximize energy efficiency.

District systems and infrastructure can easily be updated to integrate new technologies and/or renewable fuels that benefit a great number of buildings in a geographic footprint. This allows for carbon footprint reductions at a scale that would be impossible to achieve on an individual basis.

As an example, Vicinity Energy delivers thermal energy to over 90 million square feet of space throughout Philadelphia. As the central plant in the district adopts cleaner, green energy approaches, the ripple effect is massive! For example, combined heat and power (CHP) is one technology that Vicinity has employed in several of its districts, including Philadelphia, to provide sustainable, efficient thermal energy to its customers.

Vicinity has also implemented the use of biogenic fuels in our operations. Otherwise wasted vegetable oil from restaurants is then collected and can be burned in our district energy systems as-is, resulting in huge energy and carbon savings. Other technologies include waste-to-energy, geothermal, and other sustainable distributed energy resources.

Bringing it all together, locally and globally

This shift to more efficient renewable fuels and the impacts that only district energy can achieve at such a large scale has brought considerable carbon reductions here in the US and the world over. For example, the city of Anshan in China is projected to reduce its use of coal, a heavy pollutant, by 1.2 million tons each year by combining separate networks into a district, and simultaneously capturing 1 gigawatt of heat wasted by a city steel plant.

Another example is Paris, which has utilized district energy for years to combat air pollution. Today, 50 percent of Paris’s social housing, all of its hospitals, and 50 percent of its public buildings are supplied by district energy. That’s the heat-demand equivalent of 500,000 households! Or look at London, which has a number of district heating projects underway, including the Lee Valley Heat Network, which will provide heat and hot water to over 5,000 homes by capturing waste heat from a nearby EcoPark.

Whether for reasons of price, reliability, efficiency, or to create more sustainable infrastructure for future generations, communities across America and the world are looking locally, joining together, and making a change for the better with district energy.

These green colleges are putting sustainability principles into practice

Posted on by Bella Pace

In recent years, colleges and universities around the world have been placing sustainability at center stage. More recently, however, green initiatives have become more than just a box to check on a performative action checklist. Talking about sustainability is no longer enough, as students begin to consider the quantifiable efforts of colleges and universities when making their four-year decision.

The United States alone is responsible for 15% of global CO2 emissions. Furthermore, U.S. higher education institutions collectively emit 52,434 metric tons of carbon each year. Carbon dioxide has reportedly reached record-high levels and is the most dangerous and prevalent greenhouse gas in our atmosphere. Excessive carbon dioxide traps heat, resulting in global warming and climate change. Many risks are associated with climate change, including intense rainfall and flooding, rising sea levels, severe heat waves, and air pollution.

Green colleges that are making a positive impact

The current generation of college students is exceptionally carbon conscious and understands that significant changes must be made to combat the climate emergency. In fact, nine in ten Generation Zs prioritize taking small actions daily to protect the environment, such as buying used clothing and sourcing locally grown food. These efforts can be attributed partly to how climate change has impacted their lives: 68% of this generation has been personally affected by extreme weather events, which underlines the urgency of addressing this crisis.

Young adults have begun to realize their voice and are using it to advance causes of particular importance to them. 75% of Gen Zs agree that the world has reached its tipping point regarding climate change. They have taken a broader approach to addressing climate change by considering the sustainable impacts of their more significant purchases and career paths. Students hold colleges to a higher standard by evaluating prospective schools’ sustainable business practices, carbon footprint, and community-based efforts while deciding which universities to attend.

Luckily, as environmental awareness grows among incoming college freshmen, so does sustainability action at their respective universities. Here is a rundown of four American colleges committed to shaping a greener environment:

1. Emerson College

Emerson College, located in Boston, Massachusetts, has prioritized sustainability across all aspects of its organization. In 2007, the College joined 700 other higher education institutions in signing the Carbon Agreement, through which they pledged to work towards carbon neutrality by 2030.

This reduction was made possible in part by the organization’s dedication to meeting the internationally recognized Leadership in Energy and Environmental Design standards (LEED). Four of Emerson’s five residential halls and numerous academic buildings have earned LEED certification. 

Since 2018, Emerson has purchased 100% wind electricity, leading the school to be named the largest green power user in the New England Women’s and Men’s Athletic Conference for 2018-2019. This title sits alongside many sustainability awards and recognition the campus has received.

In 2024, Emerson became the first university to decarbonize campus heating with eSteam™, Vicinity’s carbon-free thermal energy product. This marked a significant stride in the college’s goal to achieve a carbon-neutral and resilient campus by 2030. While campus buildings have decreased their carbon emissions by 80% since 2007, this step is an important pillar of the College’s continued carbon reduction strategies, making Emerson’s thermal operations carbon-neutral.

Boston, Massachusetts, USA - October 8, 2022: View down Washington Street in Downtown Boston, lined with historic theater buildings.

2. University of Pennsylvania

The University of Pennsylvania is an Ivy League research institution in Philadelphia, Pennsylvania. UPenn has demonstrated its commitment to cutting carbon emissions across its organization steadily to reach its goal of 100% carbon neutrality by 2042. 

UPenn’s Climate and Sustainability Action Plan outlines its mission to mitigate the impacts of climate change and explore innovative ways of expanding its use of renewable energy to reduce carbon emissions. The University uses district energy to optimize energy efficiency at its advanced MOD 7 chilled water plant. 

Additionally, their new power purchase agreement has allowed them to construct solar facilities which will fuel 75% of their academic campus and health system’s electricity demand. These solar farms will support a cleaner and more efficient energy grid. They’ve also expanded recommissioning energy efforts in their labs, classrooms, and offices to stay on par with these sustainability objectives.

University of Pennsylvania building exterior at sunset

3. Arizona State University

Arizona State University, located in downtown Tempe, Arizona, aims to lead the world by example through its sustainability vision. With 65 LEED-certified buildings and 90 solar systems on campus, ASU has gone above and beyond in honoring this vision.

ASU has implemented a circular resource system to minimize waste and accomplish a sky-high reuse value. ASU tracks waste across its organization through a Zero Waste Annual Review and strives to improve its system’s aversion rates and re-circulation characteristics each year.

The University has remained on track with its positive climate initiatives by enhancing energy efficiency. ASU guides its conservation efforts with building-level energy monitors to identify energy waste. In 2019, 51% of the energy consumed by the University came from low-carbon sources. The organization has twice been recognized by the Association for the Advancement of Sustainability in Higher Education for its sustainable purchasing practices, demonstrating its commitment to carbon neutrality.

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4. Colorado State University

Colorado State University, located in Fort Collins, Colorado, has dedicated its Student Sustainability Center to provide resources for student-led sustainability work. This center has supported many green innovation projects, such as the Patchwork Initiative, a student-run project to minimize clothing consumption and build a culture around slow fashion and upcycling. This program periodically collects lightly used seasonal clothes from students, faculty, staff, and other community members to create anonymous opportunities for students needing professional clothing or seasonal necessities.

Moreover, the University’s Coalition for Sustainable Student Organizations (CSSO) partners with registered student organizations campus-wide to encourage collective efforts that can better accomplish impactful climate action.

CSU was among the world’s first institutions to calculate its nitrogen footprint. The school’s Nitrogen Footprint Project was created entirely by students at the Sustainability Center. They gathered data from across campus to calculate the nitrogen footprint, checked and double-checked the numbers, and wrote their results in an award-winning research paper.

Volunteers in face masks touch elbows at park clean up

Leading the charge toward a carbon-free future

Progressive environmental change does not strictly happen at the industry or governmental level. These green colleges demonstrate the reach of community-based sustainability with the support of intelligent, forward-thinking administration and eco-conscious students who push for more visibility into sustainability practices.

How thermal storage technology is transforming the transition to clean energy

Posted on by Patrick Gillooly

Today, the transition to clean energy is driven by advancing and implementing renewable sources like wind, hydro, and solar power. However, with heating and cooling still comprising about 50% of global total energy consumption, dynamic solutions are needed to make a clean energy future a reality.

Energy providers are turning to thermal storage technologies to fully harness the power of renewable energy and ensure that resources are not wasted.

Thermal energy storage (TES) is a critical enabler for the large-scale deployment of renewable energy and the transition to decarbonized building stock and energy systems by 2050. This is because thermal storage allows for the preservation of energy when it is not needed so that it can be used more efficiently later.

Let’s dive into what TES systems are and how they work.

What is thermal storage, and how does it work?

Put simply, thermal energy storage is a technology that reserves thermal energy by heating or cooling a storage medium and then using the stored energy later to deliver heating, cooling, or electricity. Thermal storage helps use energy more efficiently, especially when harnessing renewable energy sources.

In the case of solar energy, thermal storage solves the issue of supply and demand imbalance. Because solar energy output is limited to the daytime and peaks at around noon each day, there is an imbalance of supply and demand in the evenings. Thermal storage systems can solve this issue by storing the excess solar output during the day and then rapidly deploying it at night to accommodate lower output levels. Excess thermal energy can be stored in the form of molten salt or other materials such as high-temperature substrate.

When it comes to cooling, a facility can use ‘off-peak’ renewable electricity rates, which are lower at night, to produce ice. Ice can be incorporated into a cooling system to lower energy demand during the day.

Diagram of how thermal storage systems work
Source: Hyme Energy

A thermal storage system consists of three components: a material or fluid that absorbs and retains heat, an energy source, and a way to discharge the heat.

The first element, a material or fluid that absorbs and retains heat, can take one of three forms: sensible, latent, or thermochemical.

  • Sensible heat storage – A material or fluid stores thermal energy and increases in temperature.
  • Latent heat storage – When a material or fluid stores thermal energy but does not increase in temperature because the material is going through a phase change (e.g., solid to liquid or liquid to gas), it is latent.
  • Thermochemical storage – Thermochemical energy storage (TCES) utilizes a reversible chemical reaction and takes advantage of strong chemical bonds to store energy as chemical potential.

Secondly, the system must have an energy source to “charge” the material. This can come from concentrated solar power, nuclear heat, electricity converted to heat, heat offtake from industrial processes, and more.

Thirdly, the system must have a way to discharge the heat. This last element of TES systems typically occurs through convection, passing a heat exchange medium through the thermal battery to carry heat.

To safely transport the heat, thermal batteries often need to be co-located with the end user of the heat or converted electricity. This is one reason district energy systems are well positioned to take advantage of thermal storage technologies—district energy facilities, like Vicinity’s, are often connected to high-voltage substations and have access to transmission-level electricity rates.

Thermal batteries can also be used for cooling, but the heat coming in must first be converted to electrical energy, which is then used to cool the storage medium.

Benefits of thermal storage technology

According to the United States Department of Energy, advances in thermal energy storage would lead to increased energy savings, higher performing and more affordable heat pumps, flexibility for shedding and shifting building energy loads, and improved comfort of building occupants. When integrated with district energy systems, the benefits of thermal storage technology are amplified.

Drive energy efficiency

Thermal energy storage systems provide increased energy efficiency. For example, district heating systems promote energy efficiency by conserving and utilizing heat when required. As a result, less fossil fuel is needed, and plant emissions are decreased, resulting in lower product costs.

Reduce carbon footprint

TES systems offer a promising electrification strategy for large-scale energy operations. Because they can utilize low-cost renewable electricity to produce and store heat for later use, TES systems can provide utility-scale grid storage and help manage intermittency issues with renewable resources.

In addition, further carbon footprint reductions can be achieved depending upon the storage medium utilized. Lava rocks, for example, have a reduced environmental impact compared to other storage materials such as lithium batteries.

Improve generation capacity

Whether in a commercial office space or a busy hospital, the need for heating and cooling is rarely consistent. For most building operations, demand for heating and cooling can fluctuate depending on the season, time of day, month of the year, and region in which they operate.

To use energy more efficiently, TES systems store surplus capacity that is available during low-demand periods and preserve it for use during high-demand periods, thus reducing wasted energy.

Space savings

In facilities looking to integrate TES systems into existing systems, space constraints can present a challenge. However, different thermal storage mediums require less space per cubic feet than others. For a thermal storage system of 300 MWh capacity, for example, an electric battery storage unit would require 800,000 cubic feet of space, whereas molten salt storage would require 151,000 cubic feet of space, and thermal brick storage would require 90,000 cubic feet of space.

thermal storage diagram representation

Less maintenance

TES systems typically require less maintenance because they use smaller chillers, cooling towers, and pumps than conventional systems. When integrated into district systems, end-users benefit from even less required maintenance because district energy systems aggregate energy production, freeing customers from asset ownership and maintenance of onsite equipment.

Integrating thermal storage with district energy systems

Around the world, innovative district energy companies are deploying thermal energy storage technology to demonstrate how the technologies can cost-efficiently replace fossil fuels, ensuring a reliable supply as a backup to intermittent renewables.

In Rønne, Denmark, Hyme Energy will deploy a 20-hour hydroxide molten salt-based thermal energy storage system. The company partnered with utility Bornholms Energi & Forsyning (BEOF) to deploy the unit at a combined heat and power plant in Bornholm, described as an ‘energy island.’

The 1MW/20MWh system will be the first in the world to deploy molten hydroxide salts. It will provide heat, power, and ancillary services for the grid in Rønne. The project demonstrates the success of deploying storage technologies to retrofit a traditional cogeneration facility.

How Vicinity Energy is utilizing thermal storage

Vicinity Energy is dedicated to transitioning to clean energy generation through innovative technologies like industrial-scale electric boilers, river-source heat pumps, and large-scale thermal storage systems. These technologies allow us to offer the nation’s first carbon-free eSteamTM product to district energy customers in Boston and Cambridge and our other systems across the country in the coming years.

Along with installing industrial-scale heat pumps and electric boilers, Vicinity Energy’s electrification strategy also embraces extensive thermal storage facilities. Unlike traditional lithium battery storage systems, thermal storage leverages the favorable thermodynamics of molten salt or high-temperature substrate to efficiently store vast amounts of thermal energy.

thermal storage facility
Sample visual of what Vicinity’s thermal energy storage system could look like

While Vicinity already employs the use of ice and chilled water storage systems at our Baltimore and Trenton central district energy facilities for chilled water production, we also have plans to install large-scale thermal storage technologies at our facilities. Vicinity will install thermal storage facilities that will use electricity to heat thermal material such as thermal bricks, or lava rocks, and then use the heat to produce steam during periods of peak demand.

Vicinity will procure off-peak renewable electricity to generate heat with thermal storage systems to create eSteam™ and distribute it to our customers when heating demand is high.

Vicinity’s district energy systems are connected to high-voltage substations and can access transmission-level electricity rates. This advantage reduces local utility distribution constraints and ensures a reliable and cost-effective supply of renewable thermal energy to customers.

As Vicinity progresses with our electrification strategy, marked by installing the first electric boiler at our Cambridge facility in 2024 and plans to install an industrial-scale heat pump complex in 2028, Vicinity stands as a beacon of innovation in North America’s energy transition.

Connect with a member of our team to learn how you can decarbonize your building with district energy today.

Earth Day 2025: Vicinity Energy’s climate progress

Posted on by Bella Pace

Every year on April 22nd—and throughout the entire month of April—millions of people around the world come together to support their communities and raise awareness about environmental issues and the ongoing fight against climate change. In celebration of Earth Day, our teams demonstrated their dedication to sustainability by taking part in clean-up efforts and community events across the regions we serve. Our efforts go beyond just one day or week: we take pride in the fact that our teams are committed to making a positive impact in our communities all year long.

Our progress to net zero carbon emissions

This year, our team has made significant progress in our commitment to sustainability and decarbonization. To achieve net zero carbon emissions across our operations, we are making critical changes at our central facilities in Boston and Cambridge, with our other systems in cities across the country to follow.

These sustainable upgrades will enable us to serve our customers with eSteam™, our renewable thermal energy product. eSteam™ is designed to rapidly decarbonize the highest source of emissions in major cities: commercial buildings.

To offer eSteam™, we are installing electric boilers, industrial-scale heat pumps, and thermal storage at our central facilities. This year, these plans have become a reality with critical electrification upgrades.

Key electrification updates

In 2024, Vicinity installed the electric boiler at its Kendall facility, and the boiler entered service in November 2024. Today, it is generating and delivering eSteamTM to customers like Boston-based college Emerson College. To power the boiler, Vicinity is procuring electricity from renewable, carbon-free energy sources like wind and solar.

Our teams are also actively engineering the river-source industrial-scale heat pump complex that will be used to create eSteamTM at our Kendall facility.

We will install the 35MW industrial-scale heat pump complex at our Kendall facility by 2028. Rather than utilize natural gas, the system will allow us to extract heat from the Charles River and use it to preheat water for our new electric boiler, improving the system’s overall efficiency. From there, the water will be returned to the Charles River at a lower temperature, ensuring no change or damage to the river’s ecosystems.

Over the next few years, our other district energy systems will employ similar technologies to achieve net zero carbon emissions and offer eSteam™ to our customers. These locations are procuring electric boilers to be installed in the next year or two.

Vicinity Energy teams commemorate Earth Day

This year, Vicinity’s teams around the country took action to improve the environment and spread awareness of the environmental movement throughout Earth Month, leading up to Earth Day on April 22.

From cleaning up our local parks and rivers to supporting community efforts, our employees took action this year to better the communities we serve for all.

Philadelphia

People in green Vicinity Energy t-shirts stand outside for an Earth Day cleanup
The Vicinity Philadelphia team had the opportunity to participate in an annual clean up with our neighbors at our Grays Ferry facility. We worked with a team from PECO and with direction from the Schuylkill River Development Corporation to clean up a section of the trail called the Grays Ferry Crescent.

Boston and Cambridge

Our Boston and Cambridge teams and their families came together to participate in the Run of the Charles, the annual river race held by the Charles River Watershed Association, the leading science and advocacy organization for the Charles River and its watershed and a great partner to our organization.
Our Boston and Cambridge teams and their families came together to participate in the Run of the Charles, the annual river race held by the Charles River Watershed Association, the leading science and advocacy organization for the Charles River and its watershed and a great partner to our organization.
People in a kayak paddle on the Charles River for an event commemorating Earth Day

Oklahoma City

Four mean stand outside along a river as part of an Earth Day river clean up event.
The Vicinity team in Oklahoma City participated in the annual river clean-up with OG+E. The team picked up trash along the riverbank of the Oklahoma River in downtown OKC. The event was a collaborative effort among multiple local businesses, and the cleanup effort successfully removed 600 lbs. of trash and wood debris from the river!

Baltimore

Four people stand outside for a campus clean up event as part of Earth Day 2025.
The Baltimore team kicked off Earth Month with a campus clean up at the University of Maryland, Baltimore (UMB)! The group came together with the Office of Sustainability and Environmental Services, and volunteers to pick up trash around campus.
Four people stand outside for a campus clean up event in support of Earth Day 2025.
Our Baltimore team attended the Baltimore Tree Trust Arbor Day event that was held at Patterson High School in Baltimore. Vicinity was proud to sponsor the event and participate in planting trees the day of.

Maximizing data center efficiency with district cooling technology

Posted on by Nate Paist

To meet the ever-increasing need for fast, reliable data to power online activity, data centers are being built and expanded across the United States. According to the U.S. Department of Energy, data centers are some of the most energy-intensive buildings in the country, consuming 10 to 50 times the energy per floor space of a typical office building.

Data centers house computer systems and their associated components, such as telecommunications and storage systems. Data centers typically consist of several components, such as servers, routers, and firewalls, designed to store, manage, and disseminate data efficiently and securely. These require a large, continuous energy supply and a large space.

The centers require large amounts of power for high-intensity computing and cooling systems, with a new large data center requiring the same amount of electricity needed to power 750,000 homes.

Today, data centers account for approximately 2% of total U.S. electricity use, a percentage projected to increase as information technology and artificial intelligence use grow. Data centers can reduce their greenhouse gas emissions by improving energy efficiency and leading the transition to renewable energy sources.

This is why new and existing data centers across the country are turning to district energy systems for a sustainable, reliable, and cost-effective solution to power their operations.

Challenges data centers face in today’s landscape

Data centers are crucial to our digitally driven society. They power cloud computing, data analytics, and various online services, from websites and artificial intelligence platforms to enterprise applications.

Data centers require large amounts of electricity, space cooling, and humidification to keep equipment running efficiently. In addition to their high energy demands, data centers also face the following energy challenges:

Energy efficiency and green IT

Creating sustainable performance by reducing energy consumption and other resources, greenhouse gas emissions, and Power Usage Effectiveness (PUE).

Cost-effectiveness

Finding partners who can build a competitive advantage by optimizing energy consumption and lowering the total cost of ownership.

Capacity to evolve

Maintaining the agility and skills needed to react to dynamic customer energy demand and efficiently deliver operational performance metrics and Service Level Agreements (SLAs).

Reliability and availability

Providing continuity of service of energy systems to guarantee 24/7 uptime and availability of data.

Temperature and humidity controls 

To maintain optimal temperature and humidity levels, data centers rely heavily on their HVAC (heating, ventilation, and air conditioning) systems to keep equipment cool and working effectively.

District cooling is a powerful solution for data centers

District energy is the production and distribution of energy in the form of steam, hot water, and chilled water. The energy is produced at a central facility and distributed to connected buildings through a network of underground pipes, allowing building owners to forego the installation and management of onsite generation equipment.

Data centers can benefit from district cooling systems, where chilled water is produced at a central facility and delivered through an underground network of pipes to connected buildings. District chilled water provides primary cooling for space and equipment within the data center.

District steam can also be used to humidify these operations. Humidity levels play a key role in cooling and energy efficiency within data centers and in prolonging the life of materials used.

The nature of district cooling allows a single off-site chiller to replace multiple chillers across different buildings, improving efficiency and driving space savings for both production and customers. In addition, district energy systems can manage load fluctuations and handle extreme weather events effectively.

In Baltimore, Vicinity Energy provides district chilled water to the commercial building at 750 East Pratt Street, which houses an energy-intensive data center. The data center has specific cooling requirements to keep its servers operating smoothly, because the servers and electrical equipment continuously emit heat, requiring cooling even in the winter months. While onsite chillers can expose mission-critical facilities to vulnerabilities if equipment inefficiency or failures occur, Vicinity’s interconnected central energy facilities have redundancies in place to ensure 750 East Pratt Street operates seamlessly.

District chilled water offers several key advantages, making it an ideal cooling solution for these centers, especially those focused on sustainability and operational efficiency.

  • Increased reliability: Eliminating the burden of onsite chillers, district energy is a safer and more sustainable alternative. Vicinity has a 99.99% reliability guarantee and a team of over 450 energy experts, allowing data centers to deliver data efficiently while we ensure 24/7 energy delivery.
  • Meet sustainability goals: Data centers connected to a district energy system will immediately benefit from any technology, efficiency, or carbon reduction strategy implemented at the system’s central facilities. Today, district energy systems like Vicinity’s are taking critical steps to eliminate carbon emissions in buildings, offering data centers a path forward to meeting their sustainability goals.
  • Energy efficiency and cost savings: District energy systems use centralized cooling, which can be more efficient than individual systems. This can reduce energy consumption and lower energy costs.
  • Space savings: Buildings connected to a district energy system no longer need space for onsite boilers, chillers, water heaters, and cooling towers. This space-saving benefit is critical for buildings that require large open spaces for operating equipment or much-needed tenant space.

Connect with a member of our team to get started with district chilled water in your data center today and access reliable, uninterrupted service.

Sustainable commercial real estate with district energy

Posted on by Bella Pace

Today, landlords must compete for tenants among various alternative options, from co-working to work-from-home models and other hybrid options. Attracting tenants can be difficult in major metropolitan cities with high real estate values and limited space. That’s why appealing to tenants entails various techniques—and clean energy is a significant driver.

A building’s heating and cooling solution can influence tenant lease decisions and future commitments since energy drastically impacts cost, space availability, and sustainability. With district energy, building owners can free up additional amenity space, reduce energy expenses, and demonstrate sustainability benefits to potential tenants and the community.

Did you know that a 10% decrease in energy use could lead to a 1.5% increase in net operating income?

Large-scale projects call for impactful solutions

Commercial buildings and facilities have unique energy requirements. From ventilation, chilled and hot water, space temperature, and humidity requirements, commercial owners need high-quality, reliable thermal energy to support the tenants working in their spaces daily.

Disruptions in energy supply can result in financial setbacks and tenant dissatisfaction, which may affect tenant retention and jeopardize future development projects.

Commercial buildings have a significant opportunity to decarbonize their operations: they generate about 50% of U.S. carbon dioxide emissions, and 30% of the energy consumed in commercial and industrial buildings is wasted.

Across the U.S., leading cities are enacting building performance standards that require buildings to reduce their carbon emissions, making low-carbon sustainable energy a non-negotiable requirement for commercial offices. Many commercial owners are partnering with district energy systems to meet looming carbon requirements and continue to appeal to eco-conscious tenants.

How Vicinity can help

Vicinity Energy currently provides steam, chilled water, and hot water to over 300 commercial office, retail, and mixed-use buildings nationwide, totaling nearly 115 million square feet of building space. Commercial property owners can access reliable and clean energy by connecting to Vicinity’s district energy systems. Still, a team of experts also supports them to ensure their property is always running smoothly and efficiently. Our specialists include experienced licensed engineers, operators, and financial professionals.

District energy systems are fuel agnostic, making them a powerful tool for building decarbonization. Vicinity is deploying new carbon reduction technologies and integrating renewable energy sources such as wind, solar, and hydro into our systems to decarbonize the buildings we serve by 2050 or sooner. With Vicinity, commercial landlords like Coretrust Capital Partners in Philadelphia, Metropolitan Partnership in Baltimore, and Clarendon Group in Boston know their energy systems are sustainable and reliable and contribute to a greener future.

“Our partnership with Vicinity Energy and access to its district energy system is a great option for us as it streamlines a number of facility and maintenance responsibilities, which allows us to spend more time focusing on the needs of our tenants. As an added bonus, the fact that Vicinity Energy’s services increase our overall efficiency creates great alignment with our goals to ensure that our properties are as environmentally sustainable as possible,” said Michael S. Beatty, President of H&S Properties Development Corp.

District energy for critical commercial real estate operations

Our energy solutions for the commercial real estate industry are reliable and green. They help advance the innovations that propel your properties and our communities forward and protect our world.

  • Increased reliability and sustainability – Without the burden of onsite combustion or maintaining chillers or boilers, district energy is a safer and more sustainable alternative. We have a 99.99% reliability guarantee, allowing you to focus on your business while we ensure 24/7 energy delivery.
  • Uninterrupted energy supply – Proper operations and maintenance (O&M) of energy infrastructure are essential to ensuring that commercial facilities can rely on a reliable and uninterrupted thermal energy supply.
  • Remote monitoring – If your building needs energy O&M support by a qualified engineer but does not require someone full-time onsite, we can provide remote monitoring of your energy infrastructure at our innovative control centers.
  • Energy efficiency and optimization – From efficiency assessments and investments to project implementation, our experts will create and provide a custom energy strategy to optimize your campus energy assets and deliver solutions that drive energy efficiency.

Get started with district energy today to decarbonize your buildings and access reliable, uninterrupted service.

Powering healthcare facilities with district energy

Posted on by Bella Pace

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. In today’s challenging environment, hospital leadership is thinking of ways to reduce costs while maintaining high patient care and safety standards.

Unique energy demands require reliable, green solutions

It’s no secret that hospitals have unique energy needs. Given the critical care that hospitals and healthcare facilities provide, any disruption to energy delivery can have dire consequences.

In addition, hospitals serve patients 24 hours a day, 365 days a year. Their operations depend on energy for heating, cooling, and, importantly, sterilization to ensure patient safety. These demanding energy needs mean that healthcare facilities consume nearly 10% of the total energy used in U.S. commercial buildings and spend more than $8 billion annually.

Many leading U.S. cities also have aggressive climate action goals. Hospitals typically have an energy use intensity nearly three times that of the average commercial building, so sustainable energy has become a non-negotiable requirement for hospitals and medical facilities that provide cutting-edge care.

How Vicinity can help

Today, lighting, space heating, and water heating represent about 65% of hospital energy use. Hospitals and healthcare facilities must have a reliable energy partner that provides continuous energy delivery while keeping costs low and reducing carbon emissions.

Vicinity currently serves nearly 28 million square feet of healthcare facility space in the U.S. By connecting to Vicinity’s district energy systems, healthcare teams have access to reliable, sustainable, and clean energy and are supported by a team of experts to ensure their property is always running smoothly and efficiently. Our specialists include experienced licensed engineers, operators, and financial professionals.

In Baltimore, leading healthcare providers at Mercy Medical Center have relied on Vicinity’s district energy system to power their critical care since 1963. One of the top hospitals in Baltimore, Maryland, Mercy Medical Center is renowned for excellence in primary care and specialty care in women’s health, cancer, digestive health, liver disease, and more. While Vicinity provides chilled water and steam for the hospital’s daily operations, Mercy can focus on fostering a community of compassionate care for their patients.

Robert Beckwith, vice president of support services and construction at Mercy Medical Center, offered his perspective on the partnership: “The steam and chilled water services that Vicinity Energy provides are crucial to the operational efficiency of our hospital and support our mission to provide excellent and compassionate clinical care to all citizens of Baltimore.”

Additionally, Vicinity has partnered with Oklahoma State University (OSU) to provide chilled water and steam service to a new medical campus. This project will combine multiple existing buildings into a state-of-the-art hospital. Vicinity will serve the entire 58-bed medical-surgical inpatient hospital for Oklahoma veterans, totaling over 275,000 square feet of building space. District energy will allow the medical campus to provide the highest level of care for Tulsa’s veteran population.

Vicinity’s long-term partnerships with healthcare institutions in Baltimore and beyond enable healthcare teams to focus on providing quality clinical care to patients.

How district energy supports optimal patient care

By relying on our energy experts to manage energy infrastructure and ensure an uninterrupted supply of service, healthcare providers can focus on what matters most: advancing human health and saving lives.

  • Increased reliability and sustainability – District energy is safer and more sustainable than onsite chillers or boilers.
  • Maximized critical space – District energy service eliminates the need for in-building boilers, chillers, and cooling towers so that healthcare facilities can free up space for life-saving equipment. Hospitals connected to district systems can make smart, economical use of all the space that would otherwise be dedicated to large, costly equipment.
  • Optimized sterilization and humidification – The CDC recommends steam sanitation over conventional sanitation methods. Hospitals use our high-pressure steam for space humidification to support infection control and patient comfort. Our clean steam solutions provide proper air and comfort for healing, empowering hospital staff to provide patients with top-quality care.
  • Uninterrupted energy supply – Healthcare facilities with existing onsite energy plants require experienced O&M experts to ensure that they are operating correctly, and that energy is supplied at all times. Proper O&M of energy infrastructure is essential to ensuring that healthcare facilities have the energy to operate 24/7.

Get started with district energy today to decarbonize your healthcare facilities and access reliable, uninterrupted service.

Variable Refrigerant Flow (VRF) systems vs. District energy: What is the best way to heat and cool your facility?

Posted on by Bella Pace

Modern commercial building managers and landlords have more to consider than ever when it comes to selecting an HVAC solution for their facilities. Two of the most frequently considered solutions for building space heating and cooling are Variable Refrigerant Flow (VRF) and district energy. They both offer unique strengths and risks, and a careful analysis of both is necessary to make the smartest decision for your specific situation.

While both can effectively heat and cool buildings, they operate very differently—and those differences have major cost, risk, and operational implications.

This guide breaks down VRF vs. district energy to help you determine which solution best fits your facility.

What is a Variable Refrigerant Flow (VRF) system?

A Variable Refrigerant Flow (VRF) system is a refrigerant-based HVAC solution that uses a central outdoor condenser to supply heating and cooling to multiple indoor units (evaporators) throughout a building.

VRF systems adjust refrigerant flow in real time, allowing different zones within the building to be heated or cooled simultaneously.

What are the key questions to consider before installing a Variable Refrigerant Flow (VRF) system?

There are several considerations to keep in mind about VRF systems, however:

1. What are the capital costs of VRF Systems?

VRF systems require significant upfront investment:

  • Costs include outdoor condensers, indoor units, refrigerant piping, controls, and installation
  • Compressors typically last about 10-15 years
  • Replacement compressor costs can range from $5,000 to $15,000 per unit in commercial applications

Key takeaway: VRF systems often require recurring capital reinvestment over the building’s life cycle, not just a one-time expense.

2.  What are the maintenance requirements of VRF systems?

VRF systems are mechanically complex and require:

  • Trained HVAC technicians
  • Specialized refrigerant expertise
  • Ongoing inspections, repairs, and component replacements

Owners must either maintain skilled staff in-house or rely on third-party HVAC contractors—often at high service rates.

3. Do VRF systems rely on electricity?

Yes, VRF systems require electricity to run, which exposes buildings to multiple risks:

  • Exposure to volatile electricity prices and evolving energy regulations
  • Increased peak demand charges, especially during extreme weather
  • Loss of heating and cooling during power outages, which can:
    • Endanger occupants
    • Damage sensitive equipment and assets
    • Disrupt mission-critical operations

4. Are there safety concerns with VRF systems?

VRF systems rely on refrigerants, which are stored and circulated in the building. In the event of leaks, these refrigerants can pose potential health risks to building occupants, particularly in densely occupied commercial spaces.

5. How much space do VRF systems require?

VRF installations often require:

  • Rooftop space for condensers, which can limit use for amenities like:
    • Roof decks
    • Gardens
    • Solar installations
  • Ductwork to meet air quality and ventilation codes

Post-COVID building standards have further increased ventilation and air movement requirements, making space planning even more complex.

Rows of rooftop HVACs on the roof deck of an office tower with taller towers in the background. VRF or VRV air conditioner for commercial buildings

6. Do VRF systems damage building envelope integrity or structure?

VRF systems require roof penetration, which exposes the building to potential leaks or other structural issues.

What is district energy?

District energy is a form of thermal energy delivery in which steam, hot water, and/or chilled water are generated at a central facility and then distributed through a network of underground pipes to nearby buildings, rather than those buildings installing and maintaining onsite boilers or chillers.

What are the top considerations to keep in mind when considering district energy?

1. How reliable is district energy?

District energy systems are extremely reliable. At Vicinity, our distribution systems are made up of robust underground steel-encased pipes that are reliable even in severe weather, and our systems maintain 99.99% reliable energy delivery.

Because central district facilities can utilize multiple fuel sources and have bult-in redundancies, service is reliable even in the event of electrical losses.

2. What are the upfront capital costs of district energy?

Unlike VRF systems, district energy typically requires:

  • Minimal or no upfront capital investment for HVAC equipment
  • No onsite boilers, chillers, or cooling towers to purchase or maintain

This can free capital for renovations, tenant improvements, or other strategic priorities.

3. Can district energy service scale with my building?

District energy can be introduced gradually, if desired. Floors or areas of a building can be added one at a time. It is also possible to submeter for tenants, contrary to common misconception.

4. Does my building have limited rooftop and building space?

District energy does not require rooftop chillers or compressors, freeing up rooftop space for amenities, a solar array, or other storage or equipment needs. This also means no rooftop penetration, which can reduce the risk of damage due to a compromised building envelope.

5. Does district energy reduce electricity usage?

Yes. Because district energy does not rely on electricity, building peak usage would be much lower than with VRF or installing electric units.

Benefits include:

  • Lower peak demand charges than VRF
  • More stable, predictable energy profiles
  • Reduced exposure to electric rate volatility

6. What are the environmental benefits of district energy?

In comparison to a VRF system, district energy requires less electricity usage, potentially making a building eligible for green rebates and tax incentives. In some cases, the U.S. Green Building Council also assigns more LEED points to buildings that use district energy.

VRF vs. district energy: Which is right for your facility?

To summarize, when comparing VRF systems versus district energy service, it’s essential to evaluate:

  • Capital availability and lifecycle costs
  • Maintenance requirements and operational risk
  • Electrical exposure and peak demand
  • Rooftop and building space availability
  • Sustainability goals

To learn how other facilities are approaching their heating and cooling needs, from museums, to hospitals, to laboratories, read Vicinity’s customer stories.

Empowering life sciences: Achieving sustainability with district energy solutions

Posted on by Bella Pace

Life science companies nationwide are dedicated to cutting-edge research and developing critical innovations and medications. This type of mission-critical work requires reliable energy 24/7, and compared to similarly sized commercial office space, lab facilities require 10 times more energy.

Because of their energy-intensive needs, many life sciences companies have established sustainability goals for eliminating greenhouse gas emissions and protecting the planet. According to McKinsey research, the number of life science companies that have established carbon emission reduction goals increased by nearly 100 from 2019 to 2022. Additionally, many leading U.S. cities with booming life science markets also have aggressive climate action goals, making low-carbon sustainable energy a non-negotiable requirement.

Because of its high demand for energy and ambitious sustainability targets, the life sciences industry has a long history of leveraging green and reliable district energy for sterilization, humidity control, and building heating and cooling. As these companies expand in major U.S. cities close to Vicinity’s district energy systems, like in Philadelphia, Boston, and Baltimore, they can better meet their high energy needs and gain access to the right talent pool.

Vicinity currently provides steam to 33 life science facilities, totaling nearly 27 million square feet of building space. From supporting The Curtis’ office space to lab conversion in Philadelphia and providing carbon-free eSteamTM to IQHQ’s Fenway neighborhood district developments in Boston, district energy enables life science companies to excel as leaders in research and sustainability.

Why district energy is a trusted solution

State-of-the-art office and lab spaces support life science companies’ efforts to continuously operate without interruption, attract and retain top talent, and fulfill their corporate sustainability goals. While aging natural gas boilers require continuous maintenance and contribute to significant greenhouse gas emissions in the atmosphere due to the onsite combustion of fossil fuels, district steam better suits life sciences companies’ energy-intensive demand for heating, hot water, and sterilization without the ongoing maintenance costs.

Meeting high energy and reliability demands 

Laboratories have particular and stringent energy requirements. From ventilation, space temperature, and humidity requirements to sterilization of laboratory tools and equipment, life science companies need high-quality, reliable thermal energy at a high volume to support their critical operations. Any potential interruptions can lead to millions of dollars in lost research and development, presenting a financial burden for life science companies and detrimental risks to advancing fundamental medical discoveries.

Optimizing energy efficiency to fulfill corporate sustainability goals 

By leveraging district energy, facilities better support life sciences companies’ operational needs and sustainability commitments. Rather than relying on onsite boilers that continuously burn fossil fuels 24/7, companies only access steam when needed, maximizing the efficiency of their operations. Vicinity’s green steam is generated in combined heat and power (CHP) facilities, which produce electricity while simultaneously capturing waste heat that would otherwise be lost under conventional methods.

CHP systems are 25% more efficient than onsite generation, saving energy and reducing greenhouse emissions.

As Vicinity invests in upgrades at our central facilities, Vicinity’s operations will rely solely on renewable, carbon-free fuel sources and innovative technologies—including a blend of electric boilers, an industrial-scale heat pump complex, and thermal storage—to generate eSteam™. This transition enables life sciences customers, like IQHQ, to lead the way in decarbonization. Because district energy is safer, more efficient, and more resilient than conventional onsite energy generation, life sciences companies are closer to meeting their ambitious corporate goals.

Boosting tenant retention and satisfaction

In collaboration with life sciences real estate developers, Vicinity helps adapt buildings to better suit their needs. Building owners can rest assured that Vicinity’s long-term clean and reliable energy solution will enhance the overall satisfaction of their premier life sciences tenants while eliminating risks associated with outdated and inefficient equipment.

Benefits of district energy for mission-critical life sciences operations

Our energy solutions for life sciences are reliable and green, helping advance the innovations that propel our communities forward and protect our world.

  • Increased reliability and sustainability – Without the burden of onsite combustion or maintaining chillers or boilers, district energy is a safer and more sustainable alternative. We have a 99.99% reliability guarantee and a team of over 450 energy experts, allowing you to focus on your work while we ensure 24/7 energy delivery.
  • Optimal sterilization and humidification – The CDC recommends steam sanitation over conventional sanitation methods. Vicinity can provide a safer, more environmentally friendly energy solution to keep life science facilities primed for innovation.
  • Uninterrupted energy supply – Proper operations and maintenance (O&M) of energy infrastructure ensures that laboratories and medical research facilities can rely on a reliable and uninterrupted thermal energy supply.

Get started with district energy today to decarbonize your life science buildings and access reliable, uninterrupted service.

District energy supports higher education climate plans and journeys to 100% carbon neutrality

Posted on by Pamela Clark

With approximately 5,300 colleges and universities in the U.S., there is a significant opportunity to improve the energy efficiency of campus buildings and the communities they operate in. According to the U.S. Energy Information Association, higher education campuses consume approximately 18.9 kilowatt-hours of electricity and 17 cubic feet of natural gas per square foot of floor space yearly, equating to significant carbon footprints and high energy costs.

In recent years, more than 330 universities and colleges have established climate action plans with aggressive targets, including becoming 100% carbon-neutral campuses by 2050 or sooner. To realize these ambitious goals, these institutions need to reduce building emissions and optimize energy efficiency while maintaining reliability with their energy solution.

Consisting of hundreds of academic buildings, medical centers, dormitories, and lab spaces, many university campuses are nestled in urban areas close to Vicinity’s district energy systems. Several major universities in Boston, Philadelphia, Baltimore, West Virginia, and other cities have long histories of relying on district energy for heating, cooling, lab processes, and humidification control.

Vicinity currently provides steam and chilled water to 23 higher education campuses, totaling over 32 million square feet of building space. These academic institutions use district energy to keep their campuses operating smoothly and leverage district energy to underscore their commitment to improving the world, combatting climate change, and fulfilling their sustainability missions. These efforts ultimately help attract sustainability-minded students and enable the universities to gain national attention for their impressive sustainability accomplishments.

Why district energy is a trusted solution

Vicinity partners with higher education institutions to explore opportunities for energy efficiency improvement and strategies to meet carbon neutrality. In collaboration with the universities’ facilities teams, Vicinity helps optimize their campuses’ energy consumption and reduce their carbon footprints with reliable district steam, tailored preventative maintenance programs, and training sessions. eSteamTM, Vicinity’s carbon-free renewable energy product, is an innovative solution for universities and colleges with the most aggressive carbon reduction goals, ensuring they are on the fastest track to eliminate their campus’ carbon emissions.

In particular, Emerson College leverages eSteamTM to not only achieve the City of Boston’s carbon emissions reduction targets established as part of BERDO 2.0 but also achieve its own sustainability goals, which are even more aggressive than the city’s mandate. With eSteamTM, Emerson is on a streamlined path to a carbon-neutral and resilient campus by 2030.

Continuous improvement drives reliability and efficiency

Vicinity and many of our higher education customers have worked closely together over the years to drive improvements at Vicinity’s central facilities and on their campuses. As Vicinity upgrades our central district energy facilities, higher education customers immediately reap the benefits, including improved reliability and reduced carbon emissions.

As Vicinity continues to upgrade our central district energy facilities with electric boilers, heat pumps, and thermal storage as part of our Clean Energy Future commitment, district energy will further align with schools’ climate action goals. While we are first kicking off our electrification plans in Boston and Cambridge to support schools like Emerson College, we are rolling out these upgrades to our other locations. Emerson and other schools’ climate action goals highlight their commitment to a cleaner future, and their notable progress towards reducing their impact on the planet through district energy underscores their bold leadership in a climate-uncertain world.

Proactive maintenance supported by Vicinity’s experts 

Vicinity partners with schools to improve their operations by offering training tailored to the unique needs of the facilities teams and providing operations and maintenance support. Vicinity’s onsite training equips the facilities teams with the tools to proactively maintain their equipment and prevent interruptions in service, which is especially critical for medical campuses. Topics include steam trap inspections, pressure regulating valves (PRVs), and other critical equipment.

District energy for critical campus operations 

Our energy solutions for higher education facilities are reliable and green, helping advance the innovations that propel our customers and communities forward and protect the world we live in.

  • Increased reliability and sustainability – Without the burden of onsite combustion or maintaining chillers or boilers, district energy is a safer and more sustainable alternative. We have a 99.99% reliability guarantee and a team of over 450 energy experts, allowing you to focus on your work while we ensure 24/7 energy delivery.
  • Optimal sterilization and humidification – The CDC recommends steam sanitation over conventional sanitation methods. Vicinity can provide a safer, more environmentally friendly energy solution to keep your educational workspaces and laboratories primed for innovation.
  • Uninterrupted energy supply – Proper operations and maintenance (O&M) of energy infrastructure is essential to ensuring that campus buildings, including dormitories, laboratories, and research facilities, can rely on an uninterrupted thermal energy supply.
  • Remote monitoring – If your campus needs energy O&M support by a qualified engineer but does not require someone full-time onsite, we can provide remote monitoring of your energy infrastructure at our innovative control centers.
  • Energy efficiency and optimization – From efficiency assessments and investments to project implementation, our experts will create and provide a custom energy strategy to optimize your campus energy assets and provide solutions that drive energy efficiency.

Get started with district energy today to decarbonize your campus’ buildings and access reliable, uninterrupted service.

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