A Chinese air conditioner tycoon

A singing workforce, Mongolian millionaires in Porsches, and saving the planet—inside the empire of a Chinese tycoon with more than money on his mind

Zhang has never wavered from this technology, even when, in the early 2000s, market conditions temporarily turned against it and his sales force begged him to add normal, electric-powered air conditioners to Broad’s offerings. Its advantages all involve energy savings. Compared with typical compression systems, nonelectric air-conditioning as Broad makes it will always require less energy per unit of cooling, because when energy is converted from one form to another, some of it is lost. Electric-compression cooling requires more stages of conversion—fossil fuel to electricity at the power plant, electricity to mechanical power at the compressor, both stages very wasteful—than does using natural gas to boil liquid. Nonelectric cooling will also always be more adaptable to other sources of energy, since it is easier to apply a variety of heat sources, including solar power and biomass burning, to do the boiling than to use them to generate electricity in a remote plant and transmit it to the air-conditioning site. And this method of cooling helps reduce the costly peak loads imposed on the power grid, because natural gas is cheapest and most abundant in the summer, exactly when the demand for air- conditioning goes up. Indeed, since storing natural gas is expensive and difficult, in many countries the available gas is simply burned off—wasted—during the summer, when no one needs it for heating. In China, air-conditioning accounts for as much as 50 percent of the electric load during peak times in the summer. Zhang pointed out to me—as he has noted in countless speeches, and as is emphasized by the Harvard Business School case study—that with all of these advantages, his kind of air-conditioning can make both the electric and the natural-gas networks less wasteful while still keeping people cool in the summer. And while we’re at it: the nonelectric systems use a relatively benign natural salt (lithium bromide) rather than using—and inevitably releasing—Freon and other chlorine-based products that erode the Earth’s ozone layer.