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Vicinity Energy Incorporates Green Loan Principles to Support Investment Funding in Green Districts

By District Energy posted 08-10-2022 14:39




Vicinity Energy, a decarbonization leader with the nation’s largest portfolio of district energy systems, has recently incorporated Green Loan Principles into its existing credit facilities. Vicinity will use funds from new Green Loan borrowings to support investments into eligible green projects across its district energy systems using renewable energy, waste heat, cogenerated heat, or a combination. The Green Loan Principles, initially introduced by the LSTA, APLMA, and LMA, provide a general framework of market standards and guidelines to promote the development and integrity of the Green Loan product. Vicinity intends to use the funds of the Green Loan for investments that are consistent with the EU Taxonomy technical criteria for District Energy and the Energy Efficiency category of the Green Loan Principles.

Vicinity’s lender group includes many leading global financial institutions for sustainable financing. BNP Paribas served as Green Loan Coordinator.

With a commitment to achieve net zero carbon emissions by 2050, Vicinity is electrifying its district energy systems in Boston and Cambridge, with its other locations to follow. The company’s multi-pronged decarbonization and electrification plan includes installing innovative technologies such as electric boilers, industrial-scale heat pumps, and thermal storage. As a key part of this strategy, Vicinity announced the launch of eSteam™, the first-ever carbon-free thermal energy product powered by renewable energy.

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