U.S. DOE announces $169 million for nine projects to accelerate electric heat pump manufacturing

Date: 21 November 2023
U.S. DOE announces $169 million for nine projects to accelerate electric heat pump manufacturing
As part of the Biden-Harris Administration’s Investing in America agenda, the U.S. Department of Energy (DOE) announced a historic $169 million for nine projects to accelerate electric heat pump manufacturing at 15 sites across the country. The selected projects are the first awards from DOE’s authorization, invoked by President Biden using emergency authority on the basis of climate change, to utilize the Defense Production Act (DPA) to increase domestic production of five key clean energy technologies, including electric heat pumps.

“Getting more American-made electric heat pumps on the market will help families and businesses save money with efficient heating and cooling technology,” said U.S. Secretary of Energy Jennifer M. Granholm. “Thanks to President Biden’s Investing in America agenda, these investments will create thousands of high-quality, good-paying manufacturing jobs and strengthen America’s energy supply chain, while creating healthier indoor spaces through home-grown clean energy technologies.”

Heating and cooling buildings, homes, offices, schools, hospitals, military bases, and other critical facilities drive more than 35% of all U.S. energy consumption. Heat pumps efficiently provides comfortable temperatures for heating and cooling homes and businesses in all climates, especially when homes are well insulated, and can also provide more efficient water heating. When compared to gas boilers, heat pumps reduce greenhouse gas emissions by up to 50%. Electric heat pumps enable more American families and businesses to benefit from lower energy costs through American-made clean energy technologies, while supporting good jobs, reinvigorating American manufacturing, improving public health, tackling climate change. Additional savings are currently available through IRA Energy Efficient Tax Credit 25C tax credits to help consumers afford heat pumps. To learn more about savings and how heat pumps work, visit Pump Up Your Savings with Heat Pumps.

Heat pumps are critical to reducing the nation’s reliance on fossil fuels, bolstering national security, and boosting energy independence to strengthen national defense, lowering consumer energy costs, improving energy efficiency, and mitigating the climate crisis. This portfolio of selections will boost manufacturing of electric heat pump (air-to-air, geothermal, and air-to-water) and key components (compressors and refrigerants) This portfolio will lead to manufacturing in 13 states. The lead organizations are listed below along with their proposed project locations and technologies.

  • Armstrong International, Inc – Three Rivers, Michigan – industrial heat pumps.
  • Bard Manufacturing Company – Madison, Georgia – single package vertical unit air conditioning and heat pumps.
  • Copeland LP – Sidney, Ohio; Ava, Missouri; Lebanon, Missouri; and Cudahy, Wisconsin – compressors (heat pump component).
  • Honeywell International – in Geismar, Louisiana – refrigerant (heat pump component).
  • Hydro Temp Corporation – Pocahontas, Arkansas; and Albany, New York – geothermal heat pumps.
  • Ice Air, LLC – Spartanburg, South Carolina – cold climate heat pumps and geothermal heat pumps.
  • Mitsubishi Electric U.S. Inc – Kentucky – compressors (heat pump component).
  • Gradient – Michigan – easy-to-install room heat pumps.
  • York International Corporation – Wichita, Kansas; Waynesboro, Pennsylvania; and San Antonio, Texas – residential and commercial heat pumps.

Learn more about the nine projects selected for award negotiations here.

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