Vicinity Energy Begins Construction of Industrial-Scale Heat Pump Complex with DCO Energy and Everllence
Vicinity Energy, a national leader in urban decarbonization with the largest portfolio of district energy systems in the United States, has announced a major step forward in its electrification strategy. In partnership with Everllence (formerly MAN Energy Solutions) and DCO Energy, the company has begun construction on a 35-megawatt (MW) river-based industrial-scale heat pump complex in Boston’s Kendall Square. This new system will provide emissions-free steam generation to serve more than 70 million square feet of building space, including major medical and educational institutions.
The project is a cornerstone of Vicinity’s broader vision to decarbonize entire cities through electrification of district energy systems. Many customers have already signed long-term contracts for the new carbon-free thermal energy—branded as eSteam™—demonstrating strong market confidence in renewable heating solutions and the growing demand for sustainable energy sources across sectors.
Transforming Kendall Square into a Decarbonization Hub
The heat pump complex will be supplied by Everllence, while DCO Energy will handle the installation and balance-of-plant upgrades. A natural gas boiler at Vicinity’s Kendall Square facility will be removed to make way for the new system, with demolition already in progress. The heat pump will be fully integrated with the existing Kendall plant’s electrical interconnect, reducing the need for costly new transmission infrastructure. Once operational in 2028, the system will capture renewable thermal energy from the Charles River, converting it into usable heat to generate and distribute carbon-free steam throughout Boston and Cambridge.
This project marks a groundbreaking development: it will be the first system in the region to utilize the Charles River as a renewable heat source. The river’s natural thermal energy, combined with electricity from renewable sources, will allow Vicinity to deliver reliable and affordable decarbonized steam to customers—without relying on fossil fuels.
In addition to the heat pump system, Vicinity plans to install thermal energy storage technologies that will store excess renewable energy and deliver eSteam™ on demand, further stabilizing the grid and ensuring a steady supply of clean heat even during peak demand periods.
Economic, Environmental, and Social Benefits
The Kendall Square heat pump project will bring wide-ranging benefits beyond emissions reduction. Local labor unions will play a central role in construction, creating high-quality clean energy jobs. Residents of Boston and Cambridge will experience improved air quality as combustion-based systems are replaced with electric-powered technology. Moreover, the Charles River ecosystem will benefit from reduced thermal discharge, contributing to ecological balance and water temperature stability.
Vicinity’s CEO Kevin Hagerty emphasized the project’s transformative nature:
“Execution of this project makes Vicinity’s vision of decarbonizing cities at scale a reality. 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. It demonstrates how proven heat pump technology can be deployed at scale to decarbonize cities—without waiting for costly and time-intensive grid expansions.”
Hagerty added that Vicinity is setting a national blueprint for urban decarbonization, planning to replicate similar electrification projects across its 12 U.S. district energy systems.
Global Technology, Local Impact
Everllence’s participation brings advanced European heat pump expertise to the U.S. market. According to Uwe Lauber, CEO of Everllence, the partnership with Vicinity marks a critical milestone for decarbonizing heating systems globally.
“The heating sector still drives a major portion of global CO₂ emissions, and the energy transition cannot succeed without decarbonizing heat,” Lauber said. “District heating remains one of the most efficient and sustainable ways to deliver thermal energy. Together with Vicinity, we’re demonstrating how large-scale heat pump systems can help cities move away from fossil fuels while maintaining resilience and reliability.”
This project builds on Everllence’s proven “mega heat pump” technology, which has already been deployed in European cities to provide district-scale renewable heating. By adapting it to local conditions, the Vicinity partnership highlights how international technology transfer can accelerate American decarbonization goals.
A Track Record of Electrification Success
This latest announcement follows the installation of a 42 MW electric boiler at Vicinity’s Kendall facility—already providing carbon-free thermal energy to Boston partners via the 29-mile district energy network that runs beneath the city. Customers such as IQHQ and Emerson College are early adopters of eSteam™, aligning their sustainability goals with Boston’s Building Emissions Reduction and Disclosure Ordinance (BERDO), Cambridge’s Building Energy Use Disclosure Ordinance (BEUDO), and Massachusetts’ Stretch Energy Code.
By connecting existing infrastructure with next-generation electric equipment, Vicinity has shown that large-scale decarbonization can be achieved without tearing up cities or replacing entire heating systems. The eSteam™ product gives customers a turnkey solution to achieve compliance and sustainability goals while maintaining consistent energy reliability and cost-effectiveness.
Strengthening Partnerships for a Sustainable Future
DCO Energy, Vicinity’s installation partner, brings decades of experience in delivering efficient and resilient energy systems. Gary Fromer, CEO of DCO Energy, described the collaboration as both strategic and pragmatic:
“Vicinity’s heat pump installation is a smart investment—it reduces emissions without compromising performance and is built for long-term efficiency. This is a real-world step toward sustainability that works for today and the future. Our partnership builds upon our successful projects in Philadelphia, proving that sustainable energy infrastructure can deliver both environmental and economic returns.”
The collaboration between Vicinity, Everllence, and DCO Energy highlights a broader trend in the energy transition—where public-private partnerships and technology alliances are essential for decarbonizing legacy infrastructure at scale.
Scaling Beyond Boston and Cambridge
The lessons learned from Boston and Cambridge are already guiding Vicinity’s efforts in other cities. The company has begun installing a 9 MW electric boiler in Grand Rapids, Michigan—marking the first step toward electrification in that region. Each of Vicinity’s twelve district energy systems will follow its own customized pathway, but all share a common goal: achieving net-zero carbon thermal energy through electrification, renewable integration, and storage.
As global cities race to meet 2030 and 2050 decarbonization targets, Vicinity’s model demonstrates that deep carbon reductions in heating—one of the hardest-to-abate sectors—are not only possible but economically viable.
With the construction of the Kendall Square industrial-scale heat pump complex, Vicinity Energy is redefining what’s possible in urban energy systems. By transforming the Charles River into a renewable thermal resource, integrating proven European technology, and partnering with experienced U.S. energy firms, the company is setting the stage for a new era of carbon-free city heating—clean, efficient, and scalable.
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