Biden-Harris Administration Allocates $169 Million to Accelerate Electric Heat Pump Manufacturing
ICARO Media Group
In a significant move towards advancing clean energy and combating climate change, the Biden-Harris Administration has announced the allocation of $169 million for nine projects aimed at accelerating electric heat pump manufacturing across the United States. The funding, derived from the Inflation Reduction Act and authorized under the Defense Production Act (DPA), will not only bolster domestic manufacturing but also contribute to the growth of the clean energy workforce and reduce energy costs for families.
These selected projects mark the first awards under the DPA that were invoked by President Biden, citing climate change as a national concern. The DPA will be utilized to enhance domestic production of five key clean energy technologies, including electric heat pumps, thus aligning with President Biden's Justice40 initiative. The funding, which is part of the largest climate investment in history, will support the construction of a clean energy economy, generate high-quality manufacturing jobs, improve air quality, and drive energy savings for families and businesses.
The nine projects will be implemented across 15 sites throughout the country. They are estimated to create over 1,700 high-quality jobs, particularly in disadvantaged communities, thus furthering President Biden's objective of promoting economic growth and ensuring equitable access to the benefits of clean energy technologies.
U.S. Secretary of Energy Jennifer M. Granholm emphasized the significance of American-made electric heat pumps, stating that they will contribute to cost savings and provide more efficient heating and cooling options for homes and businesses. Granholm also highlighted the positive impact of these investments in strengthening America's energy supply chain and creating healthier indoor environments through home-grown clean energy technologies.
The Senior Advisor to the President for Clean Energy Innovation and Implementation, John Podesta, hailed the Defense Production Act funds for heat pump manufacturing as evidence of President Biden's proactive approach to climate change. Podesta emphasized that these awards will not only stimulate domestic manufacturing but also enable the creation of well-paying jobs while enhancing American competitiveness in future industries.
Ali Zaidi, President Biden's National Climate Advisor, lauded the President's initiative in utilizing emergency powers under the Defense Production Act to accelerate the manufacturing of clean technologies. Zaidi noted that this investment in electric heat pump manufacturing is in line with the President's Investing in America agenda, promoting American innovation, reducing energy costs for families, and addressing the climate crisis.
Heat pumps play a crucial role in reducing the nation's reliance on fossil fuels, enhancing national security, and bolstering energy independence. By improving energy efficiency and mitigating climate change, the manufacturing of electric heat pumps will contribute to lower consumer energy costs and a more sustainable future.
The selected organizations that will lead these projects include Armstrong International, Inc; Bard Manufacturing Company; Copeland LP; Honeywell International; Hydro Temp Corporation; Ice Air, LLC; Mitsubishi Electric U.S. Inc; Gradient, and York International Corporation. These organizations will undertake various manufacturing activities across multiple states, ranging from industrial heat pumps and compressors to refrigerants and geothermal heat pumps.
It is anticipated that another round of DPA investments will take place in early 2024 to further secure domestic manufacturing supply chains. The Department of Energy's Office of Manufacturing and Energy Supply Chains (MESC) will lead these investments, with the focus on the heat pump program under the Defense Production Act.
While the announced selection of projects does not guarantee funding, it reflects the Biden-Harris Administration's commitment to promoting clean energy manufacturing and strengthening the nation's clean energy sector. As negotiations proceed, these investments present an opportunity to drive economic growth, reduce greenhouse gas emissions, and pave the way towards a sustainable future.
With the Biden-Harris Administration's continued focus on clean energy, the acceleration of electric heat pump manufacturing reinforces their dedication to combatting climate change, creating jobs, and building a resilient and sustainable energy infrastructure for the future.