Vicinity Energy, the largest district energy provider in the United States, has begun construction of a 35-megawatt river-based industrial-scale heat pump complex in Cambridge, Massachusetts, marking a major milestone in its plan to decarbonize district energy systems across the country.
The company has partnered with German firms Everllence (formerly MAN Energy Solutions) to supply the heat pump and DCO Energy to handle installation and related plant modifications.
The project forms part of Vicinity’s broader electrification strategy aimed at achieving net-zero emissions by 2050.
A natural gas boiler at Vicinity’s Kendall Square facility will be removed to make way for the new zero-emission system.
Demolition is already in progress, and the installation is expected to be completed by 2028.
The new system will use renewable electricity to extract heat from the Charles River to generate carbon-free steam, known as eSteam, which will serve over 70 million square feet of building space.
First of Its Kind in the US
The facility will be the first in the country to harness a river for carbon-free steam production. It will also serve as the baseload generator for Vicinity’s electrification plans in Boston and Cambridge.
The company plans to integrate thermal storage to ensure on-demand eSteam production using renewable power.
Vicinity said much of the heat pump’s output has already been contracted to major educational and medical institutions, signaling strong market demand for decarbonization solutions.
According to Vicinity, the project will deliver multiple benefits. Customers will gain access to carbon-free thermal energy, local air quality will improve and the initiative will support union labor and local jobs.
“Execution of this project makes Vicinity’s vision of decarbonizing cities at scale a reality,” said Chief Executive Officer Kevin Hagerty. “It demonstrates how proven heat pump technology can be deployed at scale to decarbonize cities without costly new electrical infrastructure.”
Everllence Brings European Technology
Everllence, based in Bavaria, will supply the mega heat pump technology for the project. The company said the initiative highlights the potential for district heating to help decarbonize one of the hardest-to-abate sectors: heat.
“The heating sector still drives a major portion of global CO2 emissions, and the energy transition cannot succeed without decarbonizing heat,” said Uwe Lauber, a senior executive at Everllence. “Together with Vicinity, we are bringing our proven mega heat pump technology to the U.S. market.”
DCO Energy Oversees Installation
DCO Energy will lead installation and system integration at Kendall Square. Chief Executive Officer Gary Fromer said the project offers a practical and efficient path to sustainability.
“Vicinity’s heat pump installation is a smart investment—it reduces emissions without compromising performance,” Fromer said. “It’s a real-world step toward sustainability that works for today and the future.”
Vicinity is replicating its decarbonization model in other cities, including Grand Rapids, Michigan, where a 9MW electric boiler is already under installation.
The company operates 19 district energy systems in 12 U.S. cities, supplying heating and cooling to 250 million square feet of building space.
As part of its nationwide plan, Vicinity aims to leverage renewable thermal technologies and electrification to transition away from fossil fuels and reach net zero by 2050.
