A New Way to Cool Buildings | Daniel Betts, CEO & Founder @ Blue Frontier
Daniel Betts ties liquid desiccant cooling to energy storage, claiming Blue Frontier can beat conventional AC efficiency by more than 3x.
Blue Frontier Treats Air Conditioning as a Grid Sizing Problem
Daniel Betts does not frame air conditioning as only a comfort appliance. He treats it as one of the main reasons the electricity system must be oversized. His logic starts with the hottest day of the year. If every building asks for cooling at the same time, the grid needs generation, transmission, distribution, and storage capacity sized for that rare peak.
That is the core problem Blue Frontier is built around. Betts said, "if you can make air conditioning go away as a peak load, you can reduce you you move from having constrained grids to having abundant grids." The claim matters because it changes the target. The objective is not just a better coefficient of performance inside a building. The objective is to remove a synchronized demand spike from the grid.
The framework is simple. First, identify the load that sizes the system. Second, redesign that load so it can shift demand in time. Third, make the building owner better off without asking the grid to serve the worst hour directly. Blue Frontier merges air conditioning with energy storage so cooling can draw less power during high demand periods and use stored potential created when power is cheaper or less grid constrained.
Liquid Desiccant as Both Cooling Engine and Storage Medium
Blue Frontier's technical foundation comes from work Betts encountered through the National Lab of the Rockies. The technology uses a liquid desiccant, a liquid that absorbs humidity from air. In conventional AC, humidity removal and temperature reduction are linked in a way that wastes energy. Betts saw a different architecture, one where humidity control could become part of a more efficient cooling process and part of a storage cycle.
He described the lab's progress as a way to create "the full stream of air conditioning both dehumidification and temperature reduction at the same time" and said it reached "at efficiencies that were more than three times higher than that of conventional air conditioning." That numeric claim is the episode's technical anchor. Blue Frontier is not selling only a control strategy or a software wrapper. It is changing the physics package inside the cooling system.
The timeline also shapes the commercialization story. Betts said the concept was first invented around 2008, came into play around 2013 and 2014, and by 2017 was ready to begin the trip from science to engineering. He founded Blue Frontier on December 4th, 2017. That date matters because it marks the moment he judged the science mature enough for company formation, but still early enough that product design, cost reduction, and market fit had to be created.
Betts' Research-to-Company Filter: When Science Is Ready for Engineering
Betts' background is unusually technical for a founder. He has a PhD in mechanical engineering with a concentration in thermal sciences, and earlier work covered fuel cells, hydrogen, lithium-ion batteries, and power systems for grid, telecom, and building uses. That training informs how he screens technology.
His filter has three parts. The first is physics significance. He looks for a change in the core mechanism, not a small gain at the margin. He said Blue Frontier offered "the first time that air conditioning would change fundamentally from like the physics of how we do air conditioning." The second is system value. The technology must solve a problem larger than the device itself, in this case peak grid load. The third is readiness. Betts waited until the lab work had cleared enough risk that the company could focus on productization rather than pure discovery.
That filter came from a painful earlier lesson. Before Blue Frontier, Betts founded B Power Tech, a company working on solid oxide fuel cells that produced power and generated cooling as a byproduct. The idea worked, but it required heavy capital, long time horizons, and favorable financing conditions. When conditions shifted, the company could not raise the funding needed for the risk profile.
Betts did not describe that experience as a failure of imagination. He described it as a reality check on capital intensity, timing, and market conditions. For climate hardware founders, the lesson is direct. Scientific validity is necessary, but it is not enough. A company needs a sequence where technical risk, capital needs, and customer value can all be carried by the market at the same time.
Commercial Buildings First Because Each Customer Can Create Unit Volume
Blue Frontier's first market is commercial buildings. Betts' reasoning is go-to-market math, not only engineering. Commercial building owners often own multiple buildings, and each building often has multiple air conditioners. That means one converted customer can become many deployed units.
Betts put it plainly: "every commercial building owner has multiple buildings and every commercial building has multiple air conditioners." He then tied that to customer economics: "the lifetime value of every customer that you have is very high." This is a specific commercialization framework for climate hardware. Start where a standard product can repeat across many sites under one buyer relationship.
That choice helps a hardware company in two ways. First, small sales counts can still create meaningful production volume. Second, repeated deployments simplify operations, service, feedback, and cost reduction. For Blue Frontier, volume is not a vanity metric. It is the mechanism for bringing down product cost and proving the system outside the lab.
The episode shows Betts thinking across three linked systems: the thermodynamic system inside the AC unit, the electrical system serving peak load, and the commercial system needed to get units into buildings. Blue Frontier's strategy works only if all three reinforce each other. The cooling machine must be more efficient, the storage function must matter to the grid, and the first customers must have enough repeat demand to carry the company from invention to scaled product.
Frameworks from this conversation
- Air Conditioning as the Grid-Sizing Load
- Liquid Desiccant Cooling as Built-In Storage
- The Research-to-Engineering Readiness Filter
- Commercial Buildings as the Unit-Volume Wedge
Full transcript Click any timestamp to jump to that moment in the video.
-
Today on the show we have Daniel Betts. Daniel is a co-founder of a company called Blue Frontier that merges AC technology with battery storage technology. You go like this. And the reason is because when electricity is in high demand or in other words when it's really hot and a lot of AC units are
-
running for example electricity can be expensive and it puts a lot of load on the grid. And so Daniel's solution is says, why don't we charge up this battery at times when the electricity is not so expensive and when there's not so much activity happening on the grid and during these periods of high demand, why
-
don't we use the energy from this battery inside of the AC unit instead of pulling directly from the grid. Very elegant. It's much more complicated than that as far as how it actually works. But what I got to talk to Daniel about was how he got to where he is. He actually comes from an extremely
-
academic background. So was an academic turned entrepreneur which I love to hear those perspectives. He also fully scaled a company that he had to shut down. Didn't think he was going to go back into entrepreneurship, ended up doing it and now is finding a lot of success with this. So a lot of uh really beautiful
-
lessons that Daniel was able to give in this episode. So it was good for me. I know it will be for you as well. Thank you as always to our sponsors. Clean Tech Growth Lab. If you're looking to grow in clean tech, they are the people to do it with. And as always, the
-
producers of this podcast, Crazy Friends. And with that, I give you Daniel. Oh, welcome to another episode of The Grove. Shout out to our sponsors mentioned just before this, but without them, it would not be possible to interview awesome people doing awesome things like Daniel. Welcome.
-
>> Oh, it's a pleasure being here, Blake. Thank you for inviting me. >> Oh, yeah. Yeah. But we got we got a long uh a long journey to detail to get through, a lot to learn um from what you've been building. So before we get into it, if you give a brief introduction of yourself and what you
-
>> Yeah. So I'm I'm I'm Daniel Bats. I'm the CEO of Blue Frontier. Um and Bluef Frontier is a technology company in the air conditioning and energy storage space. And so, um, I started this company, uh, back in in December 4th, uh 2017 [laughter] um after um, working with the National Lab of the
-
Rockies on a technology on air conditioning, but also had the potential to do energy storage and, um, fell in love with it and believe that um, we have, you know, we we had in our hands the first time that air conditioning would change fundamentally from like the physics of how we do air conditioning
-
>> uh in a way that that would create a jump in efficiency but also jump in the impact of the entire way that we create and store electricity and so it it led me to to become brave and and start and start Blue Frontier. [snorts] >> Did you always >> Yeah. Well, just just from that point,
-
had you always been uh oriented towards starting a business or did something >> actually not not really like it uh entrepreneurship sort of um fell in my lap a little bit. Uh so so my the beginning portion of my career um was aligned to becoming a scientist, right? So I I I have a PhD in mechanical
-
engineering, concentration in thermal sciences and sort of like the first half of my career was primarily around um the development of technology or analysis of technology or taking technology from a fundamental state all the way to a product or pre-product um mostly in the power generation side of things. So um I worked on fuel cells, hydrogen, uh
-
lithium-ion batteries etc. that that and their application inside you know grids scale telecommunications or building systems. >> Okay. >> And and uh I became an entrepreneur because I ended up having the opportunity to um create a new division of a company called NR1 that was investing heavily in lithium-ion batteries but wanted also to invest in
-
sort of the future of power generation um in the fuel cell space where I had been an expert. So I I I ended up taking that job and and eventually I helped create and spin out sort of became an entrepreneur first.
-
>> Okay. >> A division of of and eventually a wholly own subsidiary of u of NR1 called inner fuel. And um later on in my career, I realized that uh I love the freedom of being able to create things and uh you know and and and sort of move uh into the wilderness of
-
entrepreneurship uh pushing the envelope on the edge of knowledge uh rather than being inside the protected cocoon of a company or protected cocoon. >> Right. Right. And so that that led me to start the process of of starting a next company and then the next company and now this is the second one that I've
-
started. >> Okay. So so then at um so I I do want to ask you about the first one the I'm curious at the stage you know you said you were deep in research you said you were on your way to being a scientist at these in these circle and now you have
-
the the perspective of being on the outside. >> Uhhuh. in these circles, you know, from these perspectives of the scientists uh doing this research and things. what um what is the exciting stuff, you know, like what is that what is on the cutting edge of of of of energy and and fuel like like on uh on
-
the show we've had a lot of uh talk about like novel chemistries for batteries, you know, no and uh and then beyond you know novel chemistries for batteries like taking standard batteries and then deploying them in interesting ways or designing them in interesting ways to get more out of them or different use cases or you know these
-
are the types of things that people are doing um you know as as far as businesses go but when you're on the research side you know what uh what does it look like um so it it's from the research side um we are living probably in the most exciting time in the history
-
of humanity um in terms of innovation understanding fundamental understanding of scientific processes >> and and and an a new age of discovery >> and with a glo global collaboration that is extraordinary on the science side. Which which means that um almost everything that we have today is possibly going to be dramatically improved in in the next 20 years as
-
these technologies sort of move from the lab um into becoming companies or becoming portions of a company are adopted. uh into almost everything from um how we build buildings, how we do concrete, how we do um uh um batteries, uh chemistry, materials. Um we live in an age where we we can manipulate
-
um and uh with precision molecules and biology and and uh and in which we have created a manufacturing base that is highly hyper specialized on a global scale which means that you can you can order quality materials that are highly specific from at a very low cost um on a global scale and that that opens up
-
opportunities to do extraordinary things and in fact the creation of Blue Frontier itself is only possible because we live in this age of discovery where um I I can I can do things today that would be actually a dream to be able to do just >> just 20 30 years ago in terms of
-
>> interesting >> mechanical design analysis um material science and uh controls. >> Yeah. Okay. So remind me what the name of the company before Blue Frontier. >> So um I was the CEO and and founder of a company called B Power Tech.
-
>> Okay. So what was the experience there? How long did you do it? What ended up >> it? So so um once someone said that if you if you're going to if you're going to if you're going to go do something difficult do it big, right? And so, uh, big power tech was a a company that, um,
-
had developed or was in the process of developing a, um, a power generation device using solid oxide fuel cells that would take the heat from the solid oxide fuel cell that needs to be maintained cool and it would generate a a cooling process that would create air conditioning as a byproduct. So that was
-
my first foray of sort of marrying the idea of uh air conditioning as a peak load event and and a and a sort of an high energy consuming device >> into something that um instead produces power and becomes a solution to a power gener localized power generation.
-
>> Wow. >> And so that that technology actually was proven and it it works pretty well. Um but it is definitely uh a high-risisk highreward um uh set of technologies. So a lot of things have to go right for in terms of risk profile of a company for that company to be able to
-
be successful and I understood that right at the beginning. uh but I felt that uh it was important to sort of move move the ball forward and the and the financing conditions at the time seemed to favor you know technologies in the energy space that could push the envelope um because we were having we're
-
in the middle of a revolution in electric vehicles uh uh revolution in the in in the way that we we were manufacturing batteries and also there were there was a lot of talk and incentive around the decarbonization of buildings but also making power accessible on a global scale.
-
>> And this would enable people to have not only very lowcost power but also have the capacity to get air conditioning as a byproduct or buy an air conditioner that would produce power as a byproduct like what however you want to think about it. Um but it is difficult. it would have been um very capital
-
intensive and um and and uh and and the political winds sort of changed on me and and a capital intensive company that requires you know patient long-term capital to do something that you know it's like that gamechanging >> um once the political the legal climate changed um I found myself unable to to
-
get the company funded to the level that is necessary to be for it to be successful. >> Sure. >> And so and so unfortunately um I knew the risk going in. So it it was okay but but it it it it still like was was very a very painful uh process of of learning
-
how to >> you know like >> uh that you cannot get everything all the time whenever you want it. Right? So no matter how good your idea is, um it's still bound by the reality of of the world.
-
>> So how how long in between the end of that of that company and the next month? >> Like um a year and a half or so. And so >> did you did you think you said I'm going back into this somehow or were you like I don't know? I I I I was already um uh
-
thinking about, you know, either going into academia or going into um you know, working for for another company, right? Like just like there's because there's a there's a there's a point in which when you become you you have that experience as an entrepreneur, um it it really is it really is a painful experience. Um I I have um a lot
-
of respect for for the fact that you know um innovative companies you know they they go through their process and and technology goes sometimes through one or two companies before it it makes it and and uh and so so yeah it was a it's so painful that you you don't want to go through it again.
-
>> Yeah. And um but >> until you do >> until you do and and what happens is you you're still in the circle of innovation, right? And and um and you realize that there's a better way of doing something and um and and and and in my mindset, I have I I feel like I have the
-
responsibility of knowledge. So um who I am you know I I've been given the gift of an enormous amount of knowledge education and capabilities >> that >> that need to be used in my mind >> um to do something for for people right for us >> because everybody else has not been as
-
lucky as I am and it really is a question of luck like I was born in the right place at the right time with the right family and being in the right place at the right time throughout that has led to me being who I am and in most cases I'm taking up the space from other
-
people that probably are better and more smarter than me and and I need to give them back right and so if you have knowledge of a technology that you uniquely have capabilities to take it from where it is to where it could be I felt like you know what I have to do
-
this right yeah um and so >> um >> well so then so then that that's a Great segue because it brings us into blue frontier. So if you could talk about >> so if you're you're uh Daniel Bett's uniquely positioned to pioneer this technology, what is the technology we're talking about and how has it changed
-
since uh 2017 to to now? >> Yeah. So so the the the technology is um informed by my experiences in the power generation side. So it just turns out that if you ever design a power generation device or if you're trying to generate power and provide electricity to people, most of the time the largest
-
power the maximum power that you must provide which sizes everything from your transmission distribution and power generation equipment um even the batteries right um is tied to the worst hottest day of the year because it's air conditioning that drives the size of everything. And so if you can make air conditioning go away as a peak load, you
-
can reduce you you move from having constrained grids to having abundant grids. So we would have plenty of power to be able to provide to everyone at a much lower cost if air conditioning was not there pulling the majority of this power in the hottest days of the year.
-
which means that everything needs to be ready to provide that power at any time when that is required. So that's the that's being informed about a problem. Um and then the solution came about by the National Lab of the Rockies where where they were working on something called a liquid desicant uh type of air conditioner. And
-
a liquid desicant is a liquid that will absorb humidity right out of the air. And they had figured out a way to to transform that capability of the liquid desicant into creating the full stream of air conditioning both dehumidification and temperature reduction at the same time um at at efficiencies that were more than three times higher than that
-
of conventional air conditioning. >> Around 2015 I guess this is happening. they the the technology was first invented around 20 2008 like as a concept. >> Um but the technology really comes to play in like 2013 2014. >> Okay.
-
>> And then by 2017 it's at a point where where it's unable this is mine I need to take. >> Yeah. Like this is too good. Yeah. It it it has it has overcome um all the elements associated that that are necessary for you to say yeah this is ready to start the journey from being
-
understood from a fundamental standpoint to being productized and be brought to market um and transform into from science to engineering. So at at the beginning though was there did you guys have to find a I guess at the beginning when you're talking about deploying this technology for the first time what was the scale at which you guys were looking
-
to deploy like was it a big commercial building that you wanted to to sell into for the first couple years was it residential >> commercial commercial buildings uh first and there's a there's a good reason so on the market side um one commercial commercial buildings um are good places to start. Um because every commercial
-
building owner has multiple buildings and every commercial building has multiple air conditioners >> and so the lifetime value of every customer that you have is very high. Okay, >> which means that it allows you to um with very little wins, it starts moving you into volume quickly and volume is very important of volume on a on a on a
-
standard product is very important to bring down the cost of it, >> right? >> Um and also simplify the operations of your company if you're in particular you're a startup. So that's why commercial buildings is initially >> Yeah. Yeah. Yeah. Did it matter what kind of commercial buildings? So the key is hit the majority of commercial
-
buildings. And so um and that and the opportunity is that most commercial buildings use a you know a very uh defined set of types of air conditioners >> buildings mostly. >> Yeah. So office buildings um so the majority so 76% of all commercial buildings um are less than 200 square ft and um and almost all of them are c are
-
cooled using rooftop units and dedicated outdoor air systems in their roofs and so since they all have the same sort of phenotype of how this is done there's a standard process there's a standard like everybody does the same thing it allows you to enter a market that is enormous um with a with with with your innovative
-
product. And so the the key thing, one of the ways that I analyze uh innovation is to identify what areas of the innovation create new value and what are the areas of the innovation that are that provide equivalent value to what already exists and has a deep market. Um and and so if you have
-
innovation that doesn't cross-hatch with existing market and market dynamics and processes, you have to recreate them all from scratch. And that that is, you know, that could become a fool's eron. But in the air conditioning space, commercial air conditioning space, things are very well defined. It's a huge market. It's growing fast. So if
-
you can plug in your innovation into that market then the v the value the new value that you can create is anchored on economics and processes that you don't have to reinvent right so you go faster that way. So that's why the commercial building space was was the first place.
-
>> So how did you find the first commercial building that said yes we'll do it. Um so um through the IN2 um uh u uh Wells Fargo IN2 program that is supported by national level of the Rockies, we started the process of identifying um uh buildings um that that would would become brave enough to to be the first
-
ones to start deploying. But before that we had also done a lot of testing in labs. So we went through multiple programs. So um in New York the NAERTA uh innovation program um which allowed us to prototype and test and have third-party validation of the performance of the unit. In California, they have um what is called the the uh
-
Cal test bed program in which you test units in in a a national lab of or or a state lab of California and that allows for you to have baseline performance of the unit and therefore it it allows for someone to say like yeah I understand how this works and then you move to the
-
next step which is the cal test bed program in which you actually identify a building and you install units. Um and then we also work with large building owners that were interested in either having um uh you know reduce overall cost of operations or have overall better indoor air quality or are looking
-
to decarbonize buildings to meet uh either ESG requirements and they also became early adopters of the technology and in most cases the utilities were also supporting these early deployments and so yeah it it was was sort of like a process so In fact, the first building was um uh um the Waffle House a Waffle
-
House in Georgia, which I absolutely love. >> That's so funny. [laughter] >> Yeah. >> Is it still I Well, is is [snorts] just I have no idea what how this works, but like how often are uh AC units replaced like do they still have your equipment there or is it like a five a
-
fiveyear life cycle or something? Also, our our equipment is still there um running. It's got more than two years now um of running the first units and >> Wow. >> Um yeah. And and uh yeah, AC equipment is supposed to have a lifetime of around 15 to 20 years.
-
>> Okay. >> Um the the first prototypes of our unit um uh we we we learned that no, they they they probably don't don't have those lifetimes. The ones that we're selling now, yes. Um but back back the first units that were coming out of handbuilt factories. Um um yeah uh we we
-
were putting our technology for the first time into the wild I would say. Um and you learn details of how people are going to use it the environment. >> What year was that? >> I'm sorry. >> What year? What year was that?
-
>> Yeah. So the first implementation was in um yeah 2024. >> Nice. >> Yeah. >> Okay. So then so then the if if technically the the the company started 2017 and the first deployment was was uh 2024 were those were those years before 2024 all of what you described as far as uh lab testing different programs and
-
and scaling up. >> Yeah. So we we took the technology that that we um licensed from the national labs, the national lab of the Rockies um was quite incipient, right? Like right at the beginning there were a lot of engineering and science elements that needed to be overcome for it to get to
-
where we needed to be and those needed to be proven out um both from a science standpoint but also in a lab standpoint. was there was a lot of deep science >> associated with Blue Frontier >> and we did it um to you know through grants and and uh um got it >> that were given to the national labs but
-
also um through through the grants that we got from some of the state uh actors >> and also funded by the by the founders of the company uh and myself. So we with the first Yeah. It the the first um investment that we got into the company happened uh in 2021.
-
>> Oh wow. >> From an outside >> SP. So So one of my favorite questions, what has changed? What have you learned? You know, you said learning all the details and [laughter] >> you know what what are some of your favorite things that have directed the development of the product and the commercial strategy?
-
So we we directed the the the product principally towards um towards you you have to you have to pick a product like you have to pick that entry point, right? Um and one of the most exciting but painful parts of any startup is um at the beginning of the startup you're in for the science
-
and the technology side and the technology has application across a wide range of of implementations. Right? So you you talk about um global impact and you talk about how air conditioning in general is um is you know um would have an hu you could have a huge effect if all technology were changed to your
-
technology. Um but as you go through the company there's a point in which all the potential large things that you're doing narrow down to a single thing that you must do right which is your present initial product needs to be correct and it has to have market fit. It has to have market traction. It has to be
-
producible highly competitive. Um and so the nature of the company changes from being one that is exploring every potential possibility of of um improving the overall technology towards the narrowness of creating and improving a single product and and and that's a bet you have to make. And so the bet was for us the we call it a 20 ton dedicated
-
outdoor air system which is a gasler uh standard gasler of the air conditioning space for commercial building. uh they provide the ventilation, humidity control and pressure control of buildings and and uh we we we made the decision to go after it because it was a highly applied market with standard product that um that um would enter into
-
buildings that had complex air conditioning requirements and all of those things we could do better than with a than the competition, the standard competition. Um but that's a bet. You don't know if you're making the right bets. Um and so you you enter it and you narrow and you concentrate.
-
>> Something that is fascinating to me is that at the beginning you described yourself as uh deeply on the research side uh you know heading into academia even after your first um uh journey with entrepreneurship you know you were still talking about academia. A lot of what inspired the beginning of this show and the beginning of of my
-
company was people that were coming from academia that had these revolutionary technologies and were bringing them to market without any understanding of or any interest even of uh of understanding a a commercial need or customers or competitiveness or all these things that you just laid out masterfully. I mean you're talking about you know
-
identifying a beach head market that you know has very sustainable or repeatable processes going at all these things you're talking about are like set yourself up very much for success. So at what point have you always had a a a perspective for business and if not how did you learn it and uh you know how has
-
it developed I guess you know these things. >> Yeah. So um so my my my background is my family was my my parents are doctors but my my grandfather and my grandmother were entrepreneurs. Um, I grew up in Panama >> and and they were they were entrepreneurs out of necessity due to the the the fact that they were, you
-
know, it's a they were they were black people living in in a in a in a country that was that that had a a a very strong racist uh component. Um, that came about due to the fact that the United States had implemented Jim Crow type laws in in Panama during the time that they were
-
there. um when they grew up and they were building their businesses and so but they build businesses anyway. they found a way and and uh um and I always respected and had great conversations about how do you think the astuteness that is required to to sort of hack the market or how fragile the things that
-
look strong and monolithic like standard large businesses and how in reality they're fragile because they're leaving behind portions of the market that um that in which you can grow and you can you can overcome uh the limitations of the existing businesses um and in fact create enormous value and so I had that
-
mindset already coming in even into the entrepreneurial or in the in the science space >> in which I'm always looking for the thing that will that will jiujitsu our way into solving one of the biggest you know systemic problems that we may have either on energy production or even on fundamental technology like what are the
-
things that the buttons that you press and the steps that you take in order to make the whole thing unravel. And so I brought sort of that system level thinking into my entrepreneurial journey and not you know going through lessons throughout it but applying the same type of rigor and thought to how do you how
-
do you build a business? What are the steps that you need to take? How do you um organize a team so that it's successful, innovative enough to be able to solve problems? They have the freedom, but the level of responsibility also for the things to get done in time and and have discipline like the
-
balances between this aspects of creating a business um are things that I've learned to love and and and study and I study it with the same type of rigor of a scientist. In fact, I >> well if if if there's if there's a and maybe you do this already, but if there's a group of uh academics or uh
-
scientists that are interested in going into entrepreneurship, what are the main things, you know, what are the main misconceptions that they have or main things that you would suggest to them? >> Yeah, I would say that the suspense.
-
>> Wait, hold on. Uh something happened on my side. Um uh my my computer Okay, it went blank. My computer on my side like it went blank. >> So, we're gonna do it again. So, you're gonna have to This is one of the other thing.
-
>> Sorry about that. [laughter] >> Okay. Um I'll ask you the question again and I'll go into it. >> Yeah. So, if there was a room of academics or scientists and they were interested in entrepreneurship, what would you tell them?
-
Um yeah, I would say that um one realize that they have the superpower of deep understanding um and and therefore they should not um they they should they should lean on that. But the language of business is something that you have to learn, right?
-
Um as a as a scientist. And so I I actually had this experience when um in in the inner fuel inner one example. Um I had the opportunity to create the entire strategic path for the creation of inner fuel. But when I got to the point where I had all my approvals and I had started the process
-
of creating of the team and putting together the technology pathway and the business pathway, >> I was told um okay so part of your job is that you have to you know go hire a president and you can become chief engineer or something like that. And um and I I was annoyed by that because I
-
was like look this is my baby. I did this right? Um, but I decided to go out and and and do an MBA. And the first two classes of the MBA, I immediately realized that even though I had a PhD and I knew, you know, I could [laughter] do complex math, I was missing
-
fundamental knowledge of finance, accounting, um, economics, marketing and and in some cases it was the language barrier between this is how you communicate value and these are the motivations of other people associated with what you're doing. And therefore, this is a way that you you transcend you you go from from here talking about
-
efficiencies and rates of reactions to here talking about money >> and and um that translation um is definitely a superpower if you can if you can obtain it. Uh >> so for so with so with aware beautiful by the way and thank you. Um so with where uh Blue Frontier is at the moment
-
um again the the the core technology do I understand this correctly? It's also it's energy storage plus uh air conditioning so that it stores the energy and then deploys energy like it it smooths out peaks. So it's so so it's not only drawing immediately when when it's required to do so.
-
>> Correct. Yes. So it's basically a battery disguised as an air conditioner to speak. So or a thermal battery disguised as an air conditioner. So the the um the way that it works is that it it it uses electricity um to generate heat to change the concentration of a salt solution such that it's ready to transform itself into
-
something that will create air conditioning later. and and so that salt solution can be stored and therefore the rate of electricity usage and the time of when you use that electricity can be different than the time that you're deploying the salt solution >> to create air conditioning into a space and that separation is really important
-
because it eliminates that peak load. So now air conditioning is no longer participating in it. >> But it also generates um uh an efficiency because it's a heat-driven process. You used heat to regenerate the liquid desicant or the salt solution which means that the hotter it is outside the less electricity you consume
-
which is exactly aligned with what you want to see >> in the air conditioning space. And so you get this like massive efficiency gain plus the flexib a flexible load uh uh device. >> So we say the the first deployment is 2024. Um we we did not go over what has happened in the last two years but with
-
where things are at at the moment where is Blue Frontier going? >> Where are we going? >> Yeah. So we we are in the middle of massive commercialization. So we um released the latest version of the product um at the beginning of the year at at the largest um sort of air conditioning, refrigeration and heating
-
show in the world called the AHR Expo. >> Uh and we were selected as uh best product of the year. Uh it surprised us because this is not a not just an innovation thing. is is like we we are um we're being selected around peers that are giants, right? Carrier, train, dykin, etc. Um and and here is small
-
blue frontier uh being recognized like that and our product is not just our companies. Our product is being recognized. >> Yeah. >> And um and yeah, it's it's amazing. But and and we're selling it, right? So we are we have a massive inbound of people wanting to buy Blue Frontier air conditioning systems. And so we we are
-
now in that um in in in another you know sort of like there they're this happy problems [laughter] called happy problems of the entrepreneurial journey >> in which demand is outstripping our capacity to produce >> and and we're trying to manage that uh that demand by being very selective with our customers while at the same time um
-
building out the manufacturing capacity with our partners to be able to meet to be able to meet the the level of demand that we're seeing. >> Yeah, >> that that is that is that's a great problem to have. Well, >> it's a great problem to have. It's still a problem to [laughter] put it right
-
here. >> Well, with all this work to be done and everything that you have done, I'm curious what inspires you. Um I I am inspired by by innovation that is directly aligned to maintaining overall multi-dimensional sustainability and by by what I mean by that is we are at a time where we have
-
fundamental problems both from an economic standpoint right where where things seem to be fraying um um you know the disparity of wealth um there's unfairness, lack of opportunity on the on the economic side that um um that that is making us all feel a little bit uncomfortable. Well, at the same time, we have a sustainability an
-
environmental sustainability problem that is just getting worse and we're all living through it. And those that are on the bottom rungs of the economic system are the ones that are the least creating the problem or the ones most impacted by it. And so and and and less capable of reacting to it. And at the same time all
-
of that is conspiring to create problems on the culture that binds us together >> um on a glo as as human beings and and sort of the the trust that holds and the stories that hold everybody together into saying yeah you have my best interest at heart and therefore I trust that I need to I I I will I will adapt
-
and work in this environment. All of that is under enormous pressure by multiple forces and some of those forces are innovations that can create enormous value for people like the AI AI infrastructure innovation. I am inspired by innovations that when they become real, they sanitize the whole thing, right?
-
>> Like the problem that makes everything go be frayed, suddenly boom, everything converges and it's fine and you forget about it. >> Wow. Um, and and there there are a lot of those out there. I I hope and I and I try to align Blue Frontier to be able to create that that point of of um union
-
among all things. A technology that is um competitive because it's lower cost and provides savings. a technology that eliminates peak demand which means that the electricity systems that is under an inflationary pressure and for for and and and and that requires more and more investment suddenly become sufficient because I've taken it out taken out the
-
thing that is creating the biggest problem by eliminating the air conditioning pool um and by giving people air conditioning they can live more fulfilling comfortable lives in particular if I the cost of and at the same time reduce the cost of electricity as a byproduct. Um and and that that opens up the opportunity for
-
people to also go to places that create the culture, right? Places of contact. That's why I like commercial buildings because that's the mall, that's the the theater, that's the ice skating rink that I love that it's a waffle house.
-
Our first demonstration. >> Yeah. Right. [laughter] That's the place you take your kids after the baseball game, right? And I'm making that place be a place of comfort and and and and unity, right? You're not going to be sweating here no matter what's going on outside. Very comfortable and it's going to be low
-
cost and um that inspires me. I love the idea of bringing everything together. >> Incredible, Daniel. That was a wonderful answer. I appreciate that. [laughter] That's uh well for anyone else that was inspired um you know by the story by your journey what's the best way to follow along?
-
>> Yeah so we we post uh in our website and and on LinkedIn um uh follow us on LinkedIn that there's there's you know we try to to say what's going on with the company there. Um and uh um and yeah, if anybody wants to reach out because they're interested in any part
-
of what we're doing, uh yeah, uh we we're always open to describe talk about what we're doing. We we we love it. It's our favorite subject. And [laughter] and so yeah, um uh and uh um and those that need air conditioning, um we're selling air conditioners, so >> Yes, that's right. Give us a call.
-
[laughter] Yeah. >> Well, Daniel, this has been wonderful. I'm looking forward to the next one uh to see how um how much impact you guys have by then. And maybe it'll be uh down in a nice airond conditioned room and uh in sunny Florida where you're at. So, >> I'm looking for the next one.
-
>> Thank you, Blake. [laughter] It's it's such a pleasure.