power deal

Daikin to run massive Houston-area campus on solar power through new Engie partnership

Daikin has tapped Engie North America to provide clean electricity for its Texas facilities, including the massive Daikin Texas Technology Park. Photo courtesy Daikin.

Japan-based HVAC manufacturer Daikin has struck a five-year deal with Houston-based Engie North America to fully power its Texas facilities with renewable energy.

The deal includes Daikin Texas Technology Park (DTTP), home to the company’s North American headquarters and its largest factory (and one of the largest factories in the world). The more than $500 million, 4.2 million-square-foot campus sits on nearly 500 acres in Waller.

The technology park, which held its grand opening in 2017, combines manufacturing, engineering, logistics, marketing, and sales operations for Amana, Daikin and Goodman HVAC products. Earlier this year, Daikin installed a solar array at DTTP to power its central chiller plant.

Under the new agreement, Daikin will pay Engie North America for clean electricity from the 260-megawatt Impact Solar Farm, located northeast of Dallas-Fort Worth in Lamar County. Engie North America is a subsidiary of French utility company Engie.

The $250 million solar farm, which London-based Lightsource BP started operating in 2021, produces about 450,000 megawatt-hours of solar power each year. Lightsource, which has an office in Austin, develops, finances and operates utility-scale renewable energy projects. Lightsource BP is a subsidiary of energy giant BP, whose North American headquarters is in Houston.

“This initiative represents a major step forward in aligning our operations with Daikin’s long-term sustainability goals,” Mike Knights, senior vice president of procurement at Daikin, said in a release.

Daikin aims to make its DTTP a net-zero factory by 2030.

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A View From HETI

Nada Ahmed. Courtesy photo

Everyone tells you to move fast and break things. In clean energy, moving fast without structural integrity means breaking the only planet we’ve got. This is the founder's paradox: you are building a company in an industry where the stakes are existential, the timelines are glacial, and the capital requires patience.

The myth of the lone genius in a garage doesn’t really apply here. Clean energy startups aren’t just fighting competitors. They are fighting physics, policy, and decades of existing infrastructure. This isn’t an app. You’re building something physical that has to work in the real world. It has to be cheaper, more reliable, and clearly better than fossil fuels. Being “green” alone isn’t enough. Scale is what matters.

Your biggest risks aren’t competitors. They’re interconnection delays, permitting timelines, supply chain fragility, and whether your first customer is willing to underwrite something that hasn’t been done before.

That reality creates a brutal filter. Successful founders in this space need deep technical knowledge and the ability to execute. You need to understand engineering, navigate regulation, and think in terms of markets and risk. You’re not just selling a product. You’re selling a future where your solution becomes the obvious choice. That means connecting short-term financial returns with long-term system change.

The capital is there, but it’s smarter and more demanding. Investors today have PhDs in electrochemistry and grid dynamics. They’ve been burned by promises of miracle materials that never left the lab. They don't fund visions; they fund pathways to impact that can scale and make financial sense. Your roadmap must show not just a brilliant invention, but a clear, believable plan to drive costs down over time.

Capital in this sector isn’t impressed by ambition alone. It wants evidence that risk is being retired in the right order — even if that means slower growth early.

Here’s the upside. The difficulty of clean energy is also its strength. If you succeed, your advantage isn’t just in software or branding. It’s in hardware, supply chains, approvals, and years of hard work that others can’t easily copy. Your real competitors aren’t other startups. They’re inertia and the existing system. Winning here isn’t zero-sum. When one solution scales, it helps the entire market grow.

So, to the founder in the lab, or running field tests at a remote site: your pace will feel slow. The validation cycles are long. But you are building in the physical world. When you succeed, you don’t have an exit. You have a foundation. You don't just have customers; you have converts. And the product you ship doesn't just generate revenue; it creates a legacy.

If your timelines feel uncomfortable compared to software, that’s because you’re operating inside a system designed to resist change. And let’s not forget you are building actual physical products that interact with a complex world. Times are tough. Don’t give up. We need you.

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Nada Ahmed is the founding partner at Houston-based Energy Tech Nexus.

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