The global demand for air conditioning will only increase as temperatures continue to rise.
The problem is, traditional air conditioning systems consume huge amounts of electricity to cool spaces, producing greenhouse gas emissions that warm the planet even more.
West Palm Beach-based Blue Frontier aims to lessen the carbon impact of air conditioning by dramatically reducing its electrical consumption. The startup is one step closer to meeting that goal after raising $20 million this week in a series A equity investment led by Bill Gates-founded investment firm Breakthrough Energy Ventures along with the 2150 Urban Tech Sustainability Fund and VoLo Earth Ventures. Modern Niagra, a Canadian HVAC company and Blue Frontier's commercialization partner, also participated in the funding round.
CEO Daniel Betts said the investors share Blue Frontier's "vision of driving decarbonization both in the power grid and beyond, into the buildings where we live and work."
Three-quarters of all U.S. homes have air conditioners, which consume about 6% of all electricity produced in the country, the U.S. Department of Energy reports. That results in about 117 million metric tons of carbon dioxide released into the air every year.
Globally, air conditioners and electric fans account for 20% of all electricity used in buildings, according to the International Energy Agency. By 2050, about two-thirds of of the world's households could have an air conditioner, with China, India and Indonesia accounting for half of that total.
Blue Frontier reports its air conditioning system is a replacement for packaged rooftop units that dominate the commercial building air conditioning market. It can reduce electrical consumption by up to 90% while still cooling buildings efficiently.
The company's technology and energy storage system "enables new opportunities to flatten large afternoon grid peaks in cooling demand, saving money for consumers and utilities," said VoLo Earth Ventures co-founder and managing partner Kareem Dabbagh.
Pilot installations of Blue Frontier's rooftop units will begin later this year. The product will be commercially launched in 2025, VP of Operations John Hingley told the Business Journal. The startup has 13 employees, and is currently hiring for engineering, science and manufacturing, and operations roles. Blue Frontier will relocate to a new headquarters office near the Boca Raton Tri-Rail station in September to accommodate its growing team.
"We expect this will give us access to a greater number of quality candidates within commuting range along the Miami-Fort Lauderdale-West Palm Beach metropolitan area," Hingley said.
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