the view from HETI

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.

———

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.

Trending News

A View From HETI

Chevron operates nine biodiesel plants around the world. Photo via Unsplash.

As Chevron Chairman and CEO Mike Wirth surveys the renewable energy landscape, he sees the most potential in biofuels.

At a recent WSJ CEO Council event, Wirth put a particular emphasis on biofuels—the most established form of renewable energy—among the mix of low-carbon energy sources. According to Biofuels International, Chevron operates nine biorefineries around the world.

Biofuels are made from fats and oils, such as canola oil, soybean oil and used cooking oil.

At Chevron’s renewable diesel plant in Geismar, Louisiana, a recent expansion boosted annual production by 278 percent — from 90 million gallons to 340 million gallons. To drive innovation in the low-carbon-fuels sector, Chevron opened a technology center this summer at its renewable energy campus in Ames, Iowa.

Across the board, Chevron has earmarked $8 billion to advance its low-carbon business by 2028.

In addition to biofuels, Chevron’s low-carbon strategy includes hydrogen, although Wirth said hydrogen “is proving to be very difficult” because “you’re fighting the laws of thermodynamics.”

Nonetheless, Chevron is heavily invested in the hydrogen market:

As for geothermal energy, Wirth said it shows “some real promise.” Chevron’s plans for this segment of the renewable energy industry include a 20-megawatt geothermal pilot project in Northern California, according to the California Community Choice Association. The project is part of an initiative that aims to eventually produce 600 megawatts of geothermal energy.

What about solar and wind power?

“We start with things where we have some reason to believe we can create shareholder value, where we’ve got skills and competency, so we didn’t go into wind or solar because we’re not a turbine manufacturer installing wind and solar,” he said in remarks reported by The Wall Street Journal.

In a September interview with The New York Times, Wirth touched on Chevron’s green energy capabilities.

“We are investing in new technologies, like hydrogen, carbon capture and storage, lithium and renewable fuels,” Wirth said. “They are growing fast but off a very small base. We need to do things that meet demand as it exists and then evolve as demand evolves.”

Trending News