The Biden-Harris Administration has announced a groundbreaking $169 million investment in nine projects aimed at boosting electric heat pump manufacturing across the United States. These projects, funded by the Inflation Reduction Act and authorized under the Defense Production Act (DPA), will support the production of clean energy technologies and help create manufacturing jobs while reducing energy costs for families.
The selected projects, which are covered under President Biden’s Justice40 initiative, will be funded by the largest climate investment in history. They will contribute to the development of a clean energy economy, improve air quality, and enhance national security by reducing dependency on foreign energy sources. Additionally, these projects will create over 1,700 high-paying jobs in disadvantaged communities, aligning with President Biden’s goal of achieving economic growth and equitable clean energy benefits for all.
U.S. Secretary of Energy Jennifer M. Granholm emphasized the impact of American-made electric heat pumps on cost savings for families and businesses, as well as the creation of manufacturing jobs and the strengthening of the country’s energy supply chain. John Podesta, Senior Advisor to the President for Clean Energy Innovation and Implementation, commended President Biden’s use of the DPA to accelerate domestic manufacturing and promote American competitiveness in future industries.
Ali Zaidi, President Biden’s National Climate Advisor, highlighted the importance of electric heat pump manufacturing in advancing American innovation, reducing energy bills, and addressing the climate crisis. Heat pumps play a significant role in heating and cooling buildings, homes, and critical facilities, accounting for more than 35% of U.S. energy consumption. Compared to gas boilers, heat pumps can reduce greenhouse gas emissions by up to 50%. They also contribute to energy independence, national security, and lower energy costs for consumers.
The nine projects awarded funding will focus on the manufacturing of electric heat pumps, including air-to-air, geothermal, and air-to-water heat pumps, as well as key components such as compressors and refrigerants. These projects will take place in 13 states, with organizations like Armstrong International, Bard Manufacturing Company, Copeland LP, Honeywell International, Hydro Temp Corporation, Ice Air LLC, Mitsubishi Electric U.S. Inc, Gradient, and York International Corporation leading the efforts.
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The Department of Energy (DOE) plans to continue investing in domestic manufacturing supply chains in the coming years. The DOE’s Office of Manufacturing and Energy Supply Chains (MESC) will spearhead these investments, with a focus on heat pump programs authorized under the DPA. It is important to note that the selection for award negotiations does not guarantee funding, as DOE and the applicants will undergo a negotiation process before final decisions are made.
This investment program aligns with the Biden-Harris Administration’s Justice40 Initiative, aiming to ensure that 40% of the overall benefits of federal climate and clean energy investments reach disadvantaged communities that have historically faced underinvestment and pollution burdens.
With this significant investment, the Biden-Harris Administration is taking bold steps towards accelerating the manufacturing of electric heat pumps and driving the transition to a cleaner, more sustainable energy future.