Cambridge, Mass.— Vicinity Energy has begun construction on a landmark 35-megawatt river-based industrial heat pump complex at its Kendall Square facility, marking a major milestone in the company’s mission to decarbonize Boston and Cambridge by 2050.
The project, developed in partnership with Everllence (formerly MAN Energy Solutions) and DCO Energy, will use renewable electricity to harvest heat from the Charles River, producing carbon-free steam—known as eSteam™—for delivery across Vicinity’s 29-mile district energy network.
Once complete, the installation will have the capacity to heat more than 70 million square feet of building space, serving many of the region’s leading medical and educational institutions. According to Vicinity, a significant share of the project’s capacity has already been reserved under long-term contracts, reflecting strong institutional demand for carbon-free energy solutions.
The new system will replace an existing natural gas boiler, which is currently being demolished. Construction is expected to continue through 2028, with the new heat pump integrated directly into the Kendall facility’s existing electrical interconnect. In addition to the heat pump, Vicinity plans to deploy thermal storage technologies to deliver on-demand eSteam™ from renewable electricity.
“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.”
Everllence will provide the heat pump technology, while DCO Energy will oversee installation and balance-of-plant modifications. The collaboration brings together three leaders in sustainable energy development, each with a history of advancing electrification projects in major U.S. cities.
“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 of Everllence. “This project demonstrates how district energy systems can shift away from fossil fuels while maintaining resilience and performance.”
DCO Energy CEO Gary Fromer emphasized the project’s practical benefits: “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.”
The Kendall Square installation builds on Vicinity’s 42MW electric boiler project, already delivering carbon-free steam to partners such as IQHQ and Emerson College. Those early adopters are using eSteam™ to meet sustainability targets and comply with local climate regulations, including Boston’s BERDO, Cambridge’s BEUDO, and the Massachusetts Stretch Energy Code.
Beyond Greater Boston, Vicinity is applying the lessons learned from this project to accelerate decarbonization across its 12-city portfolio. Work has already begun in Grand Rapids, Michigan, where the company is installing a 9MW electric boiler as part of its first step toward full electrification.
