The Holly Steam Combination Company was an American company that was the first steam heating company to commercially distribute district heating from a central steam heating system. The company was established in 1877 by Birdsill Holly when he formed a central steam heating system to heat multiple surrounding buildings in an immediate city area.
History
began working on a district steam system using a central boiler system in 1876 in Lockport, New York. He experimented by running an underground line from his farmhouse to his barn at the back of the property to distribute heat from steam. After successfully achieving the transfer of heat using steam distribution, he then connected an adjoining house making his first "district" consisting of a barn and a neighbor's house. The following year Holly then constructed an experimental central steam heating plant in Lockport. The system of 3 miles of supply and return pipes were on Locust, Genesee, and Walnut Streets. They sent heat to several surrounding homes, stores and office buildings. This heating system had a greater energy efficiency than the method then in use of individual boilers to heat individual buildings. The new heating system concept attracted the attention of interested investors. Holly with his investors, then formed the Holly Steam Combination Company in 1877 with a capital stock of $25,000. It was the first central station for district heating using steam. The company bought out the patents that Holly had on this steam heating system. The company then established franchises for heating plants in cities and towns across the United States. The marketing plan was for a sales representative of the company to visit a certain town or city and to present the system to town merchants and bankers. If they wanted the system, a city municipal subsidiary would then be formed and bonds sold to the residents. From the money generated, steam generating boilers and pipe-line systems would be installed to heat the downtown buildings. The Holly heating systems first used wood insulated pipe. The steam was distributed using high duty pumping engines. Holly continued to improve on the system and had 50 patents by 1882. He ultimately obtained over 150 patents by 1888 refining steam heat techniques and methods of distribution. In the 1880s Holly had installed some three dozen city district steam systems in the United States and Canada. Some of these cities were Chicago, Brooklyn, New York, Buffalo, St. Louis, Cleveland, Detroit, Toronto and Montreal. He also installed his heating systems in factories, orphanages, asylums, and universities. The first electric company to become interested in his system was the Brush Swan Electric Light Company of Auburn, New York, which in 1885 put one in operation.
Demise
The Holly Steam Combination Company was reorganized in 1882. It became then the American District Steam Company. This new company bought out the patent rights of the Holly Company and Holly's additional inventions he had recently made in the previous five years. This new company, besides franchising municipal steam heat districts, did research and development on central station heating systems. New York City obtained a franchise contract from ADSC for the New York Steam Company, which developed into the largest and most important company in the United States for the distribution and sale of heat and power from steam.
