Mojave is a company that produces novel liquid desiccant systems designed to change the nature of air conditioning by dramatically increasing energy efficiency and reducing the climate impact of AC. Pulse 2.0 interviewed Mojave CEO Phil Farese to learn more about the company.
Phil Farese’s Background
What is Phil Farese’s background? Farese said:
“Each stage of my career has included fascinating experiences that led me to my current role of running Mojave Energy Systems, a business that is manufacturing a modern-day commercial air conditioner that cuts energy use in half.”
“I started out in academia, earning my Ph.D. in Physics and completing a postdoctoral fellowship at Princeton, and from there, transitioned to the management consulting world with McKinsey & Company. While there, I led a major project on U.S. energy efficiency, which fueled my passion for energy transition and energy efficiency. Then, while at National Renewable Energy Laboratory (NREL), when I was supporting energy efficiency programs, I learned about liquid desiccant technology for air conditioning. I joined a liquid desiccant startup in Florida, eventually becoming its CTO. After that, I served as Chief Strategy Officer of Enphase Energy, the company that pioneered micro inverters in solar. I then joined the asset management firm Point72, where I gained insights into both venture capital and public sector investing. I joined Mojave as CEO in 2022.”
Formation Of The Company
How did the idea for the company come together? Farese shared:
“Mojave’s story began almost 10 years ago, when Xerox’s Palo Alto Research Center (PARC), was doing some research around climate tech for the government. At the time, PARC was looking into energy storage and came up with a clever way to store electricity by concentrating salt water. Since the product for the original application didn’t fit the storage market, PARC began looking at other uses. They discovered that they could use this concentrated saltwater approach as a liquid desiccant in a novel way for air conditioning. It made a lot of sense, and a team was assembled. Aaron Meles was a product expert who came from the HVAC industry and had worked with liquid desiccant and conventional HVAC before. Rachel Ellman joined as head of engineering. She’s an amazing engineer who had previously been working for SpaceX on the life support system for the Dragon space capsule. Together, the team set out to come up with an engineering product that would resolve some issues that had surfaced in earlier liquid desiccant products, and the result was a product that can effectively manage both temperature and humidity using less energy.”
“Once a prototype of the new commercial air conditioner was created, PARC began considering spinning it out and reached out to me about leading the business. I had been through several important stages of my career and, like Aaron, had worked with liquid desiccants before. I knew that this team and this product were a winning combination, so I decided to take the helm. With some initial capital, a handful of pending patents, and a dozen dedicated team members, we spun out from the lab and were off to the races.”
Favorite Memory
What has been your favorite memory working for the company so far? Farese reflected:
“There have been so many great memories to recall from our startup days. This is just one example. It was February of 2024, and we were in Chicago in the dead of winter, probably the coldest weekend of the year, for a big industry trade show called AHR Expo. This was an important event for Mojave because this is where we were officially launching our product. We had several pilot units installed around the country, but this would be the first big opportunity to show off a demo unit to a large crowd of potential customers. There was the usual tradeshow whirlwind getting ready for the show.”
“While we were in the convention center setting up the booth, these massive dock doors were open, and it was 10 degrees outside. We were all freezing, wearing our heavy coats inside, admittedly having some anxious thoughts, “Is anybody going to show up at our booth?” When the show floor officially opened, our fears were quickly dispelled. Within about 15 to 30 minutes, we were absolutely swamped with interest from the industry professionals attending the show. We had many hundreds of people come by to learn about Mojave and see our new unit. The level of excitement around our product was exhilarating. It was a proud moment, and very validating for the team that had worked so hard to make this launch such a tremendous success. From this moment, Mojave was set to take off.”
Core Products
What are the company’s core products and features? Farese explained:
“Mojave’s ArctiDry is a patented, easy-to-install, liquid desiccant commercial HVAC system that meets critical needs for energy savings and humidity control. Its unparalleled ISMRE2 efficiency rating of up to 11 lbs/kWh dramatically lowers electricity consumption by up to 50 percent. ArctiDry’s ability to efficiently dehumidify the air without overcooling makes it ideal for many commercial building applications such as schools and universities, hotels, grocery/retail, healthcare, manufacturing, and more.”
“Recently Mojave added an optional heat pump feature to ArctiDry for year-round, energy-efficient cooling and heating. Mojave is the first company to integrate liquid desiccant with a reversible heat pump. By incorporating a reversible heat pump, our innovative system is now a year-round electrification and decarbonization solution.”
Challenges Faced
What challenges has Farese and the team faced in building the company? Farese acknowledged:
“All HVAC and air conditioning manufacturers must demonstrate that their products are safe for installation and operation in a building. To do so, manufacturers must present the proper safety certification from an Environmental Testing Laboratory (ETL). The certifications are very valuable to both manufacturers and customers as they ensure that unsafe units do not make their way into commercial spaces.”
“For Mojave, and many in the industry, a recent challenge arose during the certification process. Our timing to seek certification coincided with a shift happening across the entire HVAC industry; the transition to low-Global Warming Potential (GWP) refrigerants that reduce environmental impact. As a result, new certifications are needed by virtually everyone in the industry, from small shops to giant corporations, creating a significant bottleneck for many companies to get their products out this year.”
“About the middle of last year, we came to realize that the process, which we expected to take six months, was now expected to take a year or more. To address this, Mojave worked closely with an ETL to upgrade our testing capabilities to the level they needed to perform the necessary tests. The Mojave team spent many late nights and engaged in long conversations to work through all aspects of the requirements. In the end we were able to get our safety certification just in time to start shipping product. Plus, we learned a lot about testing and were able to improve our facilities and procedures. In fact, we’ve been able now to complete third-party performance testing as well.”
Evolution Of The Company’s Technology
How has the company’s technology evolved since its launch? Farese noted:
“Initially, our focus was on optimizing our core product, the ArctiDry, to compete in a product class known as DOAS (Dedicated Outdoor Air Systems) as the world’s most energy-efficient commercial air conditioner. We made sure that it is a practical, easy-to-install and maintain package. However, recognizing that one product isn’t enough to cater to the unique demands of every building, we have expanded our offerings.”
“Our initial target was focused on comfort, cooling, and ventilation, particularly in handling outdoor air and delivering it at an optimal 50 to 55° dew point. As our technology has advanced, we’ve significantly expanded the capabilities of ArctiDry. We can now deliver air as low as a 35-degree dew point, allowing us to address the needs of industries with more demanding conditions. We are actively working to extend this range even further, opening up opportunities in additional applications such as ice rinks, cold storage, food and beverage industries, commercial and industrial facilities, and hospitals.”
“We have also introduced a range of features and configurations to provide customizable solutions for customers with specific needs. Some of our key advancements include the integration of larger compressors that deliver greater capacity, allowing for drier conditions and more effective dehumidification in highly humid areas. Additionally, we recently announced our new heat pump feature. Mojave is the first to pair a liquid desiccant system with a reversible heat pump, enabling ArctiDry to both cool in the summer and heat in the winter. This evolution not only solves immediate needs but also positions the company for future growth in a dynamic market.”
“By evolving from a ‘one-size-fits-all’ approach to developing specialized product lines, we are positioning Mojave to better serve each sector’s specific needs. This continuous innovation is ensuring that we remain ahead of the curve in an ever-evolving market. And there is more to come from our top-notch engineering team.”
Significant Milestones
What have been some of the company’s most significant milestones? Farese cited:
“Mojave Energy Systems has hit several key milestones since our founding. We spun out of Xerox PARC in October of 2022, and the following year completed our seed round, co-led by Fifth Wall and At One Ventures with participation from Xerox Ventures (now Myriad Venture Partners). Also in 2023, we launched our Sales Partner Program, which has now grown to nearly 30 partners across the entire U.S. and began manufacturing operations in South Carolina. Early in 2024, we debuted ArctiDry at the AHR Expo, showcasing our energy-efficient commercial air conditioner. By the end of 2024, our initial field campaign reached our goal over 30,000 hours of runtime and demonstrated field reliability on par or exceeding typical products. In Q3 of 2024, we closed a $9.5M Series A to fuel the adoption of ArctiDry.”
“Most recently, in 2025, we expanded into Latin America with our HVAC solutions and became the first manufacturer to pair a liquid desiccant system with a reversible heat pump, enabling ArctiDry to both cool in the summer and heat in the winter. These milestones have been critical in shaping our growth and positioning Mojave as a leader in the industry.”
Customer Success Stories
When asking Farese about customer success stories, he highlighted:
“One of our most exciting success stories is with the University of Central Florida. We just celebrated our first anniversary of working with them on a lab space that had some very demanding environmental requirements. UCF was dealing with an old, failing unit, and replaced it with our ArctiDry system. Not only were we able to meet the tough conditions they needed, but we also helped them save a significant amount of energy. It’s been a great partnership and an excellent example of how our technology can solve real-world problems and deliver tangible benefits to our customers.”
Funding
When asking Farese about the company’s funding, he revealed:
“In Q3 of 2024, we raised a $9.5 million Series A to fuel the adoption of our most energy-efficient commercial air conditioner, ArctiDry. The Series A round was led by existing investors Fifth Wall and At One Ventures, with participation from returning investors Myriad Venture Partners, Starshot Capital, and Alumni Ventures Group, as well as new investor Earth Venture Capital. This latest round brings Mojave’s total funding to $25.6 million. This funding has put us in a strong financial position to scale our operations and expand our product offerings. We anticipate raising a Series B round in the second half of this year.”
Total Addressable Market
What total addressable market (TAM) size is the company pursuing? Farese assessed:
“Mojave is pursuing a multi-horizon approach when it comes to our total addressable market (TAM). Initially, we’re focusing on the dedicated outdoor air system market, which represents a $4 to $5 billion annual TAM, where our product is particularly well-positioned. From there, we plan to expand into other applications, such as industrial dehumidification, cold storage, swimming pools, ice rinks, and more. This broader market could grow our TAM to $10 to $12 billion.”
“Looking even further ahead, we have some advanced ideas that could potentially tap into the entire $100 billion HVAC equipment and services market, allowing us to address a much larger opportunity in the industry.”
Differentiation From The Competition
What differentiates the company from its competition? Farese affirmed:
“What sets Mojave apart from its competition is how we’ve made a product that feels and acts almost exactly like the traditional HVAC systems that customers are already familiar with, while still delivering significant benefits like cleaner, drier air and reduced energy consumption. This approach helps avoid “technology shock”—the hesitation or resistance that comes with adopting new, unfamiliar technology. Our product requires similar maintenance and is close in size and weight to existing systems, so there’s no need for major upgrades during installation.”
“It installs just like any other HVAC unit, with a single-point electrical connection, making it easy for installers and reducing complexity. Importantly, our pricing is on par with existing equipment, so customers don’t face a huge financial decision when switching. This has enabled us to sell through traditional channels, getting manufacturers’ reps on board without needing to involve exotic financing, third-party financing, or incentives.”
“This approach has allowed us to quickly ramp up and manufacture our own equipment at solid margins, while also attracting some of the most impressive manufacturers’ reps to join our team of sales partners. We simply offer a better solution for customers who want improved indoor air quality and energy savings without the hassle of major changes or costs.”
Future Company Goals
What are some of the company’s future company goals? Farese emphasized:
“Mojave is focused on achieving key milestones that will put the company in a strong financial position. At the same time, we are continuing to work on our product line. As we pursue a larger addressable market, we have a clear vision for each new product and how we plan to roll them out. We’re also looking to expand beyond the U.S. We’ve already begun this process in parts of Latin America, and we see great potential in markets like Asia, Brazil, and the Middle East. These regions present both market opportunities and potential partnerships that could accelerate our growth. We have a goal to capture about 10% of the market share in the dedicated outdoor air market, as this would position us as a significant player in the industry.”
Additional Thoughts
Any other topics you would like to discuss? Farese concluded:
“One topic I often bring up when talking about startups is that they really come down to two things: ideas and people. And ultimately, all of the great ideas come from the people. That’s why one of our greatest challenges—and opportunities—is finding, hiring, developing, and incentivizing great talent.”
“We’re always looking for talented engineers, finance professionals, salespeople, and manufacturing production associates. If you want to get in on the first floor and share our passion for transforming the HVAC industry, we’d love to hear from you. It’s an exciting journey, and we’re focused on delivering tremendous economic value through energy savings while also helping to make a positive impact on the climate.”
