Vicinity Energy Advances Grand Rapids Electrification with 9MW Electric Boiler Installation
Vicinity Energy, a national leader in decarbonization and operator of the largest portfolio of district energy systems in the United States, has officially commenced the electrification of its Grand Rapids operations through the installation of a 9-megawatt electric boiler at its central facility. This development represents a significant milestone in the company’s overarching “Clean Energy Future” strategy, which aims to achieve net-zero carbon emissions across all operations by 2050.
The event, held at Vicinity’s Grand Rapids facility, was commemorated by U.S. Representative Hillary Scholten (MI-3) alongside municipal officials, business leaders, and regional energy advocates. Their presence underscored the collaborative public-private effort to accelerate the deployment of clean energy technologies in Michigan’s urban centers.
Grand Rapids Mayor David LaGrand emphasized the strategic importance of this initiative, stating, “We are proud to see Vicinity, a long-standing energy partner in Grand Rapids, launch its innovative eSteam™ right here in the city. This project will bring locally generated, carbon-free steam to our downtown businesses, supporting Grand Rapids’ commitment to sustainability, clean energy, and a resilient future.”
The new 9MW boiler—the first major equipment installation of its kind at the facility in over six decades—is being supported by more than $2 million in funding awarded by the Michigan Public Service Commission (MPSC). The grant was provided through the Renewable Energy and Electrification Infrastructure Enhancement and Development (EIED) program, designed to bolster the state’s climate and energy resilience goals.
The electrification initiative will enable Vicinity to supply its customers with eSteam™, a proprietary brand of carbon-free steam generated via renewable electricity, as opposed to conventional fossil fuel sources. This thermal energy solution is targeted at decarbonizing building heating and industrial processes—sectors historically reliant on carbon-intensive steam generation methods. The integration of the electric boiler into the existing district energy infrastructure is expected to facilitate an immediate and scalable impact once operational.
“This installation is not just a technical upgrade—it is a critical step forward in our mission to provide decarbonized thermal energy solutions,” said Kevin Hagerty, CEO of Vicinity Energy. “By deploying this electric boiler, we will enable a seamless transition to carbon-free eSteam™ for our customers, aligning with both our internal decarbonization roadmap and the broader climate action objectives of Michigan’s MI Healthy Climate Plan.”
The MI Healthy Climate Plan outlines the state’s strategy to achieve economy-wide carbon neutrality by 2050, with interim targets such as a 28% reduction in greenhouse gas emissions by 2025 and 52% by 2030, relative to 2005 levels. Vicinity’s Grand Rapids project directly contributes to these targets by leveraging electrification technologies to displace fossil-fueled steam production, one of the more persistent sources of urban carbon emissions.
Upon commissioning of the electric boiler in 2026, more than 100 commercial, institutional, and industrial customers served by Vicinity in Grand Rapids will gain immediate access to zero-carbon thermal energy. This availability will allow participating entities to decarbonize their operations without the need to make costly retrofits or infrastructure changes to their facilities.
Furthermore, the integration of eSteam™ positions Vicinity to expand its service offerings beyond conventional district heating. The company has already implemented similar electrification technologies at other locations in cities such as Boston and Philadelphia, where decarbonization of dense urban energy systems is a growing policy and market imperative.
The Grand Rapids initiative not only reinforces Vicinity’s role as a key player in the U.S. energy transition, but it also exemplifies a scalable model for other cities looking to electrify legacy thermal energy infrastructure. By substituting fossil-based steam generation with electric alternatives powered by renewable energy, Vicinity is providing a replicable pathway toward municipal and industrial carbon neutrality.
In sum, the project represents a convergence of public funding, private innovation, and regional policy alignment. It provides a practical demonstration of how targeted electrification investments in district energy systems can deliver meaningful progress toward climate targets, energy resilience, and sustainable economic development. As the 9MW boiler installation progresses toward its 2026 operational date, Vicinity’s Grand Rapids facility is set to become a benchmark for urban-scale thermal energy decarbonization across the country.
