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

the view from HETI

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):

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.
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.
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.

The project will focus on testing 5G networks for "stability, interoperability, energy efficiency and communication performance." Photo via Getty Images

Rice-led project receives $1.9M in federal funding to test 5G energy efficiency, more

fresh support

A team of Rice University engineers has secured a $1.9 million grant from the U.S. Department of Commerce’s National Telecommunications and Information Administration to develop a new way to test 5G networks.

The project will focus on testing 5G networks for software-centric architectures, according to a statement from Rice. The funds come from the NTIA's most recent round of grants, totaling about $80 million, as part of the $1.5 billion Public Wireless Supply Chain Innovation Fund. Other awards went to Virginia Tech, Northeastern University, DISH Wireless, and more.

The project at Rice will be led by Rahman Doost-Mohammady, an assistant research professor of electrical and computer engineering; and Ashutosh Sabharwal, the Ernest Dell Butcher Professor of Engineering and chair of the Department of Electrical and Computer Engineering. Santiago Segarra, assistant professor of electrical and computer engineering and an expert in machine learning for wireless network design, is also a co-principal investigator on this project.

"Current testing methodologies for wireless products have predominantly focused on the communication dimension, evaluating aspects such as load testing and channel emulation,” said Doost-Mohammady said in a statement. “But with the escalating trend toward software-based wireless products, it’s imperative that we take a more holistic approach to testing."

The new framework will be used to "assess the stability, interoperability, energy efficiency and communication performance of software-based machine learning-enabled 5G radio access networks (RANs)," according to Rice, known as ETHOS.

Once created, the team of researchers will use the framework for extensive testing using novel machine learning algorithms for 5G RAN with California-based NVIDIA's Aerial Research Cloud (ARC) platform. The team also plans to partner with other industry contacts in the future, according to Rice.

“The broader impacts of this project are far-reaching, with the potential to revolutionize software-based and machine learning-enabled wireless product testing by making it more comprehensive and responsive to the complexities of real-world network environments,” Sabharwal said in the statement. “By providing the industry with advanced tools to evaluate and ensure the stability, energy efficiency and throughput of their products, our research is poised to contribute to the successful deployment of 5G and beyond wireless networks.”

Late last year, the Houston location of Greentown Labs also landed funds from the Department of Commerce. The climatetech startup incubator was named to of the Economic Development Administration's 10th cohort of its Build to Scale program and will receive $400,000 with a $400,000 local match confirmed.

Houston-based nonprofit accelerator, BioWell, also received funding from the Build to Scale program.

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This article originally ran on InnovationMap.

Texas ranked as the 40th most energy efficient state, according to a recent report. Photo via Getty Images

Texas falls short on list of most energy efficient states

big yikes

The Lone Star State again failed to perform well on an annual ranking of the most energy efficient states.

Texas ranked as the 40th most energy efficient state, according to WalletHub's annual report. Only eight continental US states ranked poorer, including Oklahoma, Tennessee, Louisiana, Arkansas, Mississippi, Alabama, West Virginia, and South Carolina, respectively.

Source: WalletHub

The report looked at home and auto energy efficiency, as the report's methodology outlines.

"We obtained the former by calculating the ratio of total residential energy consumption to annual degree days. For the latter, we divided the annual vehicle miles driven by gallons of gasoline consumed to determine vehicle-fuel efficiency and measured annual vehicle miles driven per capita to determine transportation efficiency," reads the study.

Texas scored a 36 out of 50 points for home energy efficiency and 41 points for auto energy efficiency.

The report's experts were asked about federal incentivization of energy efficiency for customers, and all were in agreement that this is key to the future of energy.

"Energy conservation is a big piece that needs to be tackled efficiently for us to make any progress on energy transition. Incentivizing consumers and businesses is necessary but only if there is a clear demonstration of changes in personal and business work/living habits that reduce the energy footprint," says Sanjay Srinivasan, director at EMS Energy Institute and professor at Pennsylvania State University.

Another recent report looked at Texas from the solar perspective, and Houston failed to place in the top 15 most "solar" cities in the United States. However, Austin led the way for Texas, ranking the No. 3 most “solar” city in the U.S., per Thumbtack. Austin, with the highest net-new solar panel installations within the past year in Texas, split up four Californian cities in the top five. Only San Diego (No. 1) and Los Angeles (No. 2) outranked Austin.

While there's room for improvement for efficiency, Texas has among the best prices for energy, as WalletHub found in a report this summer. Texas ranked No. 49 on the list of the 2023 Most Energy-Expensive States.

According to the facts, Houston's energy transition is moving in the right direction. Photo via Getty Images

Report: Houston's energy transition economy sees momentum, including $6.1B in financing in 2022

Houston facts

In Houston, the energy transition movement is in full effect — at least, according to the facts and figures from a recently released report.

The Greater Houston Partnership released its 2023 Houston Facts report, which analyzes the business community across sectors. The report highlights the fact that last year Houston's energy transition brought in $6.1 billion in financing from private market investments, which represents a 61.9 percent increase compared to 2021.

"Over the last five years, Houston has seen constant growth in annual energy transition investments, with a notable surge observed from 2020 onwards," reads the report.

Corporate and strategic merger and acquisition investments are what dominated the five deal types, according to the report, representing 68.8 percent of the total investment in 2022. Additionally, private equity accounted for 19.3 percent of all deals, with venture capital comprising 9.5 percent.

Source: GHP analysis of data from the U.S. Environmental Protection Agency, Greenhouse Gas Reporting Program (GHGRP)

According to Houston Facts, there are 550 Houston-based energy transition companies working in battery/energy storage, biofuels, carbon capture, use, and storage, circular economy, and other energy value chains.

The report also looked at clean energy job growth, which increased from 66,047 professionals in the Houston metro area in 2021 to projected increase to 71,305 jobs in 2022. The fastest growing type of clean energy job is within energy efficiency, a section that accounts for 68.1 percent of total clean energy employment last year, which increased 28.2 percent from 2021. Additionally, clean vehicle employment also saw a 14.7 percent increase while job counts in grid and storage and clean fuel applications declined notably in 2022, per the report.

Compared nationally, personal finance website SmartAsset recently ranked the Houston metro area as the fifth best place in the U.S. for green jobs, which pay an average of 21 percent more than other jobs. The SmartAsset study found that 2.23 percent of workers in the Houston area hold down jobs classified as “green.”

Source: GHP analysis and estimates of data from the U.S. Energy and Employment Report (USEER) and The Energy Futures Initiative (EFI), the National Association of State Energy Officials (NASEO), BW Research Partnership (BWRP) and E2 (Environmental Entrepreneurs)

The report also analyzed Houston's progress when it comes to emissions. Here are some of the Houston Facts on emission data from the U.S. Environment Protection Agency and the Greenhouse Gas Reporting Program:

Houston's power plant sector was as the largest greenhouse gas emitter with 43.2 percent of the region's total industrial emissions, and the sector has had an overall increasing trend over the past few years.
With 27.5 percent of industrial emissions, the chemicals sector came in No. 2, but the sector peaked in 2018, slightly declined in 2019, and have remained relatively constant through 2021.
Refineries ranked third, with for 21.2 percent of emissions, and have remained stable without notable increase over the past few years.
Petroleum and natural gas sector emissions have consistently increased since 2012, except for 2017. That year, Houston's overall emission rate reached its lowest point in the past decade at 225.1 mtCO2e.
Currently, Houston's emission rate is slightly below the highest point of the past ten years, which was 243.2 mtCO2e recorded in 2012.

Houston Facts, as well as other reports and resources, is available on GHP's website.

Learn more about the specific missions the Houston Energy Transition Initiative is focused on — from carbon management to finding funding. Photo via htxenergytransition.com

Houston: Where energy leaders create a low-carbon future

the view from heti

Houston is the energy capital of the world, and it faces a dual challenge: fulfilling growing global energy demand while actively reducing carbon dioxide emissions.

This is why energy leaders have come together at the Houston Energy Transition Initiative, within the Greater Houston Partnership, to strengthen the region’s position for an energy-abundant, low-carbon future. HETI’s impact work is conducted through sector-specific working groups that leverage Houston’s competitive advantage. These working groups include: Carbon Capture, Use and Storage (CCUS), Clean Hydrogen, Capital Formation, Power Management, and Industry Decarbonization.

Texas Gulf Coast as a hub for carbon management

The International Energy Agency (IEA) states that CCUS is a requirement to any realistic pathway to a low-carbon, even net-zero future. This is especially true in the Houston area, which is home to one of the nation’s largest concentrated sources of carbon dioxide. Houston has the geology, knowledge, and infrastructure to support CCUS at scale. The CCUS Working Group at HETI supports key policy enablers of scaling CCUS, including supporting the state to earn permitting authority (primacy) over carbon capture (Class VI) wells. The working group is also analyzing the cumulative impacts of carbon capture on the region’s existing infrastructure and identifying key infrastructure needs for CCUS to reach scale.

Gulf Coast preparing for clean hydrogen liftoff

The Clean Hydrogen working group has created an ecosystem for Houston to lead the clean hydrogen market. The Texas Gulf Coast region is currently home to the world’s largest hydrogen system. By assessing the impact of hydrogen on the economy and the environment, this working group is positioning Houston to be a leading clean hydrogen hub.

Houston as a leader in Industry decarbonization

Houston needs technologies including but not limited to clean hydrogen and CCUS for decarbonization. The HETI Decarbonization Working Group partners with the Mission Possible Partnership and Rocky Mountain Institute to provide a measurable baseline of emissions and identify recommendations for decarbonization pathways in the Houston region.

An energy-abundant, low-carbon future will impact our region’s power management

It is expected that there will be changes in supply and demand of electricity associated with proposed energy transition and decarbonization projects in the Houston area. HETI has partnered with Mission Possible Partnership and Rocky Mountain Institute to assess the impact of energy transition and decarbonization on the growth and resilience of Houston’s regional power grid and the transmission and distribution of energy.

Making Houston a hub for energy transition finance

Financing energy projects is extremely capital intensive. Houston currently serves as a hub for implementing new technologies, and it has the potential to become a major center for financing innovative energy solutions. This includes everything from more efficient, lower-carbon production of existing resources to technological breakthroughs in energy efficiency, renewables, energy storage, and nature-based solutions. For technological breakthroughs, Houston needs a consistent flow of capital to the region, including sources and financing models from venture capital to growth capital, to debt markets and government grants. HETI’s Capital Formation Working Group has mapped inflows and outflows of capital for the energy transition in Houston and found that we need to grow Houston’s capital inflows ten times by 2040 to $150 billion per year to lead the transition. The Working Group regularly convenes for learning sessions on capital markets.

Over the last year, HETI’s working groups have moved from strategy to impact. To learn more about the outcomes of these working groups, check out these resources.

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This article originally ran on the Greater Houston Partnership's Houston Energy Transition Initiative 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.

This innovative window treatment startup announced new global patents. Photo courtesy of INOVUES

Houston sustainability startup secures major milestone for energy efficient tool

patent progress

A Houston company that retrofits windows with smart glass innovations to reduce energy use is celebrating a handful of patents across North America and China.

INOVUES announced it secured several new patents from the United States Patent and Trademark Office, the Canadian Intellectual Patent Office, and the China National Intellectual Property Administration.

“These newly awarded patents reinforce our commitment to innovation and position us as a trusted partner for investors and industry partners,” says Anas Al Kassas, INOVUES founder and CEO, in a news release.

The company now has a total of four patents granted in the United States, Canada, and China, and four more patents pending in the United States, Canada, and the European Union. Additionally, INOVUES has trademark protection granted in the EU, United Kingdom, and China.

INOVUES's unique window treatment — its Insulating Glass Retrofit (IGR) and Secondary Glass Retrofit (SWR) technologies — directly impacts the built environment. The process includes 70 percent fewer materials compared to traditional methods and building owners see a 40 percent reduction in reduction in energy consumption following installation.

Last year, the company raised $2.75 million in venture funding. Kassas said at the time that the funding was slated o be used to scale up the team and identify the best markets to target customers, adding that he was looking for regions with rising energy rates and sizable incentives for companies making energy efficient changes.

"We were able to now implement our technology in over 4 million square feet of building space — from Boston, Seattle, Los Angeles, New York City, Portland, and very soon in Canada," he said in a December episode of the Houston Innovators Podcast.

Anas Al Kassas is the CEO and founder of INOVUES. Photo courtesy

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4 Houston energy companies pledge financial support in wake of Hurricane Beryl

donation station

Four major energy companies in the Houston area have chipped in more than $400,000 to support relief efforts for Hurricane Beryl in Southeast Texas. Nationwide, it’s estimated that the storm caused at least $28 billion in damage and economic losses.

Here’s a breakdown of contributions announced by the four energy companies.

Baker Hughes Foundation

The Baker Hughes Foundation, the philanthropic arm of Houston-based energy technology company Baker Hughes, gave a $75,000 grant to the Houston chapter of the American Red Cross for Hurricane Beryl relief efforts.

“We understand recovery and rebuilding can take weeks or months, and we support the American Red Cross’ mission of providing people with clean water, safe shelter, and food when they need them most,” says Lorenzo Simonelli, chairman and CEO of Baker Hughes.

CenterPoint Energy

Houston-based CenterPoint Energy, which at one point had more than 2 million customers without power due to Hurricane Beryl, says its foundation has donated to several disaster relief organizations in the region. These include the American Red Cross of Coastal Bend, Catholic Charities of the Archdiocese of Galveston-Houston, Combined Arms, and the 4B Disaster Response Network in Brazoria and Galveston counties.

As of July 11, the company had also provided:

More than 30,000 bottles of water to cooling centers and distribution centers in the Houston area.
Meals to local first responders.
Mobile power generation at cooling centers, hospitals, senior living centers, and water treatment plants.

CenterPoint didn’t assign a dollar value to its contributions.

“Our first priority is getting the lights back on. At the same time, we have seen firsthand the devastation our neighbors are facing, and our commitment to the community goes beyond restoration efforts,” says Lynnae Wilson, senior vice president of CenterPoint’s electric business.

ConocoPhillips

Houston-based ConocoPhillips contributed $200,000 to relief efforts for Hurricane Beryl. The company also is matching donations from U.S. employees of ConocoPhillips.

The money is being split among the Houston Food Bank, Salvation Army and American Red Cross.

“Houston is our hometown, and many of our employees and neighbors have been impacted by Hurricane Beryl,” says Ryan Lance, chairman and CEO of ConocoPhillip.

Entergy Texas

Entergy Texas, based in The Woodlands, donated $125,000 to the American Red Cross for Hurricane Beryl relief efforts. The money will go toward emergency needs such as food, shelter, and medical care.

“Our commitment to helping communities in distress remains unwavering, and we are hopeful that our contribution will offer relief and comfort to those facing hardships in the storm’s aftermath,” says Eliecer Viamontes, president and CEO of Entergy Texas.

Entergy Texas supplies electricity to about 512,000 customers in 27 counties. It’s a subsidiary of New Orleans-based Entergy Corp.

Houston energy data SaaS co. expands to new platform

making moves

In an effort to consolidate and improve energy data and forecasting, a Houston software company has expanded to a new platform.

Amperon announced that it has expanded its AI-powered energy forecaststoSnowflake Marketplace, an AI data cloud company. With the collaboration, joint customers can seamlessly integrate accurate energy forecasts into power market trading. The technology that Amperon provides its customers — a comprehensive, AI-backed data analytics platform — is key to the energy industry and the transition of the sector.

“As Amperon continues to modernize energy data and AI infrastructure, we’re excited to partner with Snowflake to bring the most accurate energy forecasts into a single data experience that spans multiple clouds and geographies," Alex Robart, chief revenue officer at Amperon, says in a news release. "By doing so, we’re bringing energy forecasts to where they will be accessible to more energy companies looking to increase performance and reliability."

Together, the combined technology can move the needle on enhanced accuracy in forecasting that strengthens grid reliability, manages monetary risk, and advances decarbonization.

“This partnership signifies Amperon’s commitment to deliver world-class data-driven energy management solutions," Titiaan Palazzi, head of power and Utilities at Snowflake, adds. "Together, we are helping organizations to easily and securely access the necessary insights to manage risk and maximize profitability in the energy transition."

With Amperon's integrated short-term demand and renewables forecasts, Snowflake users can optimize power markets trading activity and manage load risk.

"Amperon on Snowflake enables us to easily integrate our different data streams into a single unified view," Jack Wang, senior power trader and head of US Power Analysis at Axpo, says. "We value having complete access and control over our analytics and visualization tools. Snowflake allows us to quickly track and analyze the evolution of every forecast Amperon generates, which ultimately leads to better insights into our trading strategy."

Amperon, which recently expanded operations to Europe, closed a $20 million series B round last fall led by Energize Capital and tripled its team in the past year and a half.

In March, Amperon announced that it replatformed its AI-powered energy analytics technology onto Microsoft Azure.

Learn more about the company on the Houston Innovators Podcast episode with Sean Kelly, co-founder and CEO of Amperon.

Houston logistics company works toward software solutions to energy transition challenges

offshore shipping

For several years now, Matthew Costello has been navigating the maritime shipping industry looking for problems to solve for customers with his company, Voyager Portal.

Initially, that meant designing a software platform to enhance communications and organization of the many massive and intricate global shipments happening every day. Founded in 2018 by Costello and COO Bret Smart, Voyager Portal became a integral tool for the industry that helps users manage the full lifecycle of their voyages — from planning to delivery.

"The software landscape has changed tremendously in the maritime space. Back in 2018, we were one of a small handful of technology startups in this space," Costello, who serves as CEO of Voyager, says on the Houston Innovators Podcast. "Now that's changed. ... There's really a huge wave of innovation happening in maritime right now."

And, predictably, some of those waves are caused by new momentum within the energy transition.

"The energy transition has thrown up a lot of questions for everyone in the maritime industry," Costello says. "The regulations create a lot of questions around cost primarily. ... And that has created a huge number of opportunities for technology."

Fuel as a primary cost for the maritime industry. These cargo ships are traversing the world 24/7 and burning fuel at all times. Costello says there's an increased focus on the fuel process — "all with a goal of essentially reducing carbon intensity usage."

One of the ways to move the needle on reducing the carbon footprint of these ships is optimizing the time spent in port, and specifically the delays associated. Demurrage are charges associated with delays in loading and unloading cargo within maritime shipping, and Costello estimates that the total paid globally in demurrage fees is around $10 billion to $20 billion a year.

"These fees can be huge," Costello says. "What technology has really enabled with this problem of demurrage is helping companies drill down to the true root cause of what something is happening."

All this progress is thanks to the enhancement — and wider range of acceptance — of data analysis and artificial intelligence.

Costello, who says Voyager has been improving its profitability every quarter for the last year, has grown the business to around 40 employees in its headquarters of Houston and three remote offices in Brazil, London, and Singapore. The company's last round of funding was a series A in 2021. Costello says the next round, if needed, would be next year.

In the meantime, Voyager is laser focused on providing optimized, cost-saving, and sustainable solutions for its customers — around half of which are headquartered or have a significant presence in Houston. For Costello, that's all about putting the control back into the hands of his customers.

"If we think back to the real problems the industry faces, a lot of them are controlled by different groups and parties. The fact that a ship cannot get in and out of a port quickly is not necessarily a function of one party's issue — it's a multitude of issues, and there's no one factor," Costello says on the show. "To really make the whole process efficient end-to-end you need to provide the customer to access and options for different means of getting cargo from A to B — and you need to have a sense of control in that process."

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