BOSTON, August 09, 2022–(BUSINESS WIRE)–Vicinity Energy, a decarbonization leader with the nation’s largest portfolio of district energy systems, recently incorporated green lending principles into its existing credit facilities. Vicinity will use funds from new green loan borrowings to support investments in qualifying green projects in its district energy systems using renewable energy, waste heat, co-generated heat or a combination. The Green Lending Principles, originally introduced by the LSTA, APLMA and LMA, provide an overarching framework of market standards and guidelines to promote green loan product development and integrity. Vicinity intends to use funds from the Green Loan for investments that meet the technical criteria of the EU Taxonomy for District Energy and the energy efficiency category of the Green Loan Principles.
Vicinity’s group of lenders includes many of the world’s leading financial institutions for sustainable financing. BNP Paribas acted as coordinator of green loans.
Committing to net zero carbon emissions by 2050, Vicinity is electrifying its district energy systems in Boston and Cambridge, and its other sites will follow. The company’s multi-pronged decarbonization and electrification plan includes the installation of innovative technologies such as electric boilers, utility-scale heat pumps and thermal storage. As part of this strategy, Vicinity announced the launch of eSteam™, the first-ever carbon-free thermal energy product powered by renewable energy.
“Vicinity is at the forefront of building decarbonization. We are investing in our existing infrastructure today to offer our customers a resilient and cost-effective option to cleanly heat and cool their buildings. Our new green loan financing is closely aligned with our corporate ESG strategy objectives,” said Bill DiCroce, President and CEO of Vicinity.
“Vicinity works collaboratively with our communities to help them achieve their net zero goals. We are delighted to have the partnership of financial institutions that share our commitment to sustainability,” added Matt O’Malley, Vicinity’s Director of Sustainability.
“BNP Paribas is proud to support Vicinity Energy in its program to decarbonize infrastructure and invest in energy-efficient assets, a key part of the company’s journey to net zero,” said Anne van Riel, Head of Markets. sustainable finance at BNP Paribas for the Americas region.
About Vicinity Energy
Vicinity Energy is a clean energy company that owns and operates the nation’s largest portfolio of district energy systems. Vicinity produces and distributes reliable, clean steam, hot water and chilled water to more than 230 million square feet of building space nationwide. Vicinity is committed to achieving zero carbon across its entire portfolio by 2050. Vicinity continuously invests in its infrastructure and the latest technologies to accelerate the decarbonization of commercial and institutional buildings in city centers. For more information on Vicinity’s Clean Energy Future commitment, visit www.vicinityenergy.us.
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Sara De Mille
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