DOE selects nine projects for heat pump manufacturing

The U.S. Department of Energy (DOE) has allocated $169 million for nine projects to accelerate electric heat pump manufacturing.

The selected projects are the first awards from DOE’s authorization to utilize the Defense Production Act (DPA) to increase domestic production of five key clean energy technologies, including electric heat pumps. The selected projects, funded by the Inflation Reduction Act, will collectively create over 1,700 jobs in disadvantaged communities.

“Getting more American-made electric heat pumps on the market will help families and businesses save money with efficient heating and cooling technology,” U.S. Secretary of Energy Jennifer Granholm said. “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 account for more than 35 percent of all U.S. energy consumption.
Heat pumps are critical to reducing the nation’s reliance on fossil fuels, bolstering national security, boosting energy independence, lowering consumer energy costs, improving energy efficiency, and mitigating the climate crisis.

The nine selected projects will boost manufacturing of electric heat pump and key components in 13 states. They include:

• Armstrong International, Three Rivers, Mich. – industrial heat pumps;
• Bard Manufacturing Company. Madison, Ga. – single package vertical unit air conditioning and heat pumps;
• Copeland, Sidney, Ohio; Ava, Mo.; Lebanon, Mo.; and Cudahy, Wisc. – compressors (heat pump component);
• Honeywell International, Geismar, La. – refrigerant (heat pump component);
• Hydro Temp, Pocahontas, Ark.; and Albany, N.Y. – geothermal heat pumps;
• Ice Air, Spartanburg, S.C. – cold climate heat pumps and geothermal heat pumps;
• Mitsubishi Electric, Kentucky – compressors (heat pump component);
• Gradient, Michigan – easy-to-install room heat pumps; and
• York International, Wichita, Kan.; Waynesboro, Pa.; and San Antonio, Texas – residential and commercial heat pumps.

“Today’s Defense Production Act funds for heat pump manufacturing show that President Biden is treating climate change as the crisis it is,” John Podesta, senior advisor to the President for Clean Energy Innovation and Implementation, said. “These awards will grow domestic manufacturing, create good-paying jobs, and boost American competitiveness in industries of the future.”

The DOE anticipates moving quickly on another round of DPA investments in early 2024 to secure domestic manufacturing supply chains.

“The President is using his wartime emergency powers under the Defense Production Act to turbocharge U.S. manufacturing of clean technologies and strengthen our energy security,” President Biden’s National Climate Advisor Ali Zaidi said. “This acceleration of electric heat pump manufacturing also shows how President Biden’s Investing in America agenda is advancing American innovation, cutting energy bills for hardworking families, and tackling the climate crisis – a win, win for our economy, our workers, and our planet.”