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Visiting Daikin: Houston energy transition innovation is the heart of operations

Daikin is the world’s leading air conditioning and refrigeration company, with its US headquarters and North America manufacturing facility based in Waller, Texas. Photo via htxenergytransition.org

In the energy capital of the world, we often think and talk about the energy transition and low carbon solutions in the context of energy production and distribution – whether it’s adding more renewables to the grid, reducing the CO2 emissions of our existing energy resources with CCUS and Hydrogen, developing energy storage technology to manage intermittency, or deploying other innovative solutions designed to produce or deliver more energy with fewer emissions – Houston is leading on all fronts.

But these aren’t the only solutions needed as we seek to solve one of the most challenging issues of our time. We cannot focus only on innovating the production and distribution of energy. As the demand for energy grows, locally and globally, we must also think innovatively about reducing the demand for energy, while still maintaining, and improving, quality of life. I had the opportunity recently to visit a company that is doing just that, right here in the Houston region.

Daikin is the world’s leading air conditioning and refrigeration company, with their US headquarters and North America manufacturing facility based right here, just 30 minutes northwest of downtown Houston in Waller, Texas. The Daikin Texas Technology Park, a 4.2 million ft2 facility, equal to 74 football fields, is dedicated to developing, manufacturing and marketing innovative solutions for meeting its customers’ needs while also reducing the energy required to keep people cool. Currently, air conditioning accounts for around 10% of global electricity consumption, with rapid demand growth expected in the future. As electrification becomes a key pathway to the decarbonization of various industries, demand for low-carbon power will continue to grow.

Achieving an affordable, reliable, and low-carbon future will require innovation across the entire energy value chain – from production to consumption, and, as the world’s leading air conditioning manufacturer, Daikin, is leading the way in developing innovative solutions to achieve optimum comfort and energy savings.

Three things struck me during my recent visit to the Daikin Texas Technology Park (DTTP):

  1. Innovation is at the heart of their operation. The integration of engineering and manufacturing in a single location facilitates collaboration and product innovation and accelerates implementation. The LEED Gold Certified facility was also innovatively designed to maximize energy efficiency and minimize environmental impact.
  2. People are a priority. The diversity of the 8000+ employees working at the DTTP was incredible. During the visit, we had the opportunity to see team members from many different backgrounds and with various skills and education working in all parts of their operation. They also offer a STEM scholarship program in partnership with the Waller Area Chamber of Commerce.
  3. They are environmentally focused. Daikin is fully committed to providing energy solutions that improve quality of life while also reducing environmental impact through improved efficiency. The heating and air conditioning products manufactured at the DTTP are some of the most innovative and energy efficient products on the market today – producing a more even temperature and offering as much as a 30% reduction in energy use compared to standard AC systems, all with a considerably smaller footprint.

As someone who spends a great deal of time thinking about the pathways to solving the global dual challenge of more energy with fewer emissions, much of my time is spent learning about innovations on the supply side of energy. It is exciting to learn that there is just as much innovation happening on the demand side of energy – and to see it happening right here in Houston.

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This article was written by Jane Stricker, executive director and senior vice president of theGreater Houston Partnership's Houston Energy Transition Initiative and originally ran on the HETI blog. HETI exists to support Houston's future as an energy leader. For more information about the Houston Energy Transition Initiative, EnergyCapitalHTX's presenting sponsor, visit htxenergytransition.org.

To learn more about Daikin’s entire line of innovative heating and air conditioning products and how they are Perfecting the Air, visit the Daikin global website.

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Nightpeak Energy's Bocanova Power project in Brazoria County has reached commercial operation. Photo courtesy Nightpeak Energy.

Oakland, California-based Nightpeak Energy announced earlier this month that its 150-megawatt battery storage project in Brazoria County, known as Bocanova Power, is now operating to address Houston’s peak capacity needs.

“This battery storage project will enhance grid reliability in the Alvin area while continuing to support integrating renewable energy,” Cary Perrin, president and CEO of the Northern Brazoria County Chamber of Commerce, said in a news release. “I believe we need energy storage now more than ever for its pivotal role in reducing strain on the grid while meeting fast-growing power demand in Texas and Brazoria County."

The project reached commercial operation in August, according to the release. The project utilizes Tesla's Megapack 2 XL battery storage system, and the facility operates under a long-term power purchase agreement with an undisclosed “investment-grade power purchaser.”

“Bocanova Power demonstrates the speed at which Nightpeak Energy is overcoming complex challenges to energize projects that support America's growing need for affordable, reliable, and secure energy,” Paris Hays, co-founder and CEO/CDO of Nightpeak Energy, added in the news release. “Unprecedented AI data center and manufacturing growth has only accelerated the need for these resources.”

Hays added in the release that the company has plans for more energy infrastructure projects in Texas and in the Western U.S.

Nightpeak Energy develops, owns and operates power plants that support the growing capacity needs of a decarbonized grid. It also owns and operates 240 MW of battery storage and natural gas generation facilities.

The company was founded in 2022 and backed by equity funding of up to $200 million from Dallas-based investment firm Energy Spectrum Capital.

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