Vicinity Energy, a leading decarbonization company with the nation’s largest portfolio of district energy systems, announced new strategic agreements with Everllence and DCO Energy. This collaboration marks a major milestone in Vicinity’s ongoing electrification strategy across Boston and Cambridge, securing the installation of a 35MW river-based, industrial-scale heat pump complex capable of generating steam to serve more than 70 million square feet of building space.
A substantial portion of the heat pump system’s output has already been committed through long-term contracts with prominent medical and educational institutions-well ahead of construction-demonstrating strong market demand and growing confidence in large-scale decarbonization solutions.
Under the agreement, Everllence will supply the industrial heat pump technology, while DCO Energy will oversee installation and balance-of-plant modifications. The project will replace an existing natural gas boiler at Vicinity’s Kendall Square facility, where demolition has already begun. The new heat pump, expected to be operational by 2028, will be co-located with the existing Kendall plant and utilize its current electrical interconnect. By harnessing the ambient heat of the Charles River, the system will convert this natural energy source into renewable, carbon-free thermal energy-delivered as eSteam™ to Vicinity’s customers.
Pioneering Urban Electrification at Scale
Serving as the baseload generating system for Vicinity’s electrification initiatives in Boston and Cambridge, the new installation will be the first to use the Charles River as a renewable resource for producing carbon-free steam. The company also plans to integrate thermal storage technologies, enabling on-demand eSteam™ generation powered by renewable electricity.
This project offers many benefits:
Customers get carbon-free heating.
Air quality in Boston and Cambridge will improve.
Union laborers will find new local jobs.
The Charles River ecosystem will thrive with less thermal discharge.
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“Execution of this project makes Vicinity’s vision of decarbonizing cities at scale a reality,” said Kevin Hagerty, CEO at Vicinity Energy. “Powered by renewable electricity to safely and efficiently harvest energy from the Charles River, this represents rapid advancement in electrification for U.S. district energy systems, demonstrating how proven heat pump technology can be deployed at scale to decarbonize cities. It enables immediate, scalable carbon reductions without the need for costly and time-intensive new electrical infrastructure in Greater Boston. We are establishing the blueprint of how to decarbonize a U.S. city and will be installing similar innovative electrification technologies at our district energy systems across 12 U.S. cities.”
Tapping the Charles River for Clean Energy
The agreement with Everllence to build the river-source heat pump complex at Vicinity’s Kendall facility leverages the untapped renewable thermal potential of the Charles River, representing a groundbreaking step for the regional energy transition.
“The heating sector still drives a major portion of global CO₂ emissions, and the energy transition simply cannot succeed without decarbonizing heat,” said Uwe Lauber at Everllence. “District heating remains one of the most efficient and sustainable ways to deliver thermal energy to commercial and industrial users. With this latest agreement, we are taking a major step forward with Vicinity to bring our proven mega heat pump technology to the U.S. market. Together, we are demonstrating how district energy systems can shift away from fossil fuels while maintaining resilience and performance.”
Building a Sustainable Future Through Strategic Collaboration
“Our priority is delivering reliable, practical solutions that make economic sense,” said Gary Fromer, CEO at DCO Energy. “Vicinity’s heat pump installation is a smart investment—it reduces emissions without compromising performance, and it’s built to operate efficiently over the long term. It’s a real-world step toward sustainability that works for today and the future. This collaboration builds upon the recent success of our joint projects in Philadelphia, further strengthening our track record of delivering innovative, sustainable energy solutions together.”