US DOE announces $85 million to boost heat pump production

The US Department of Energy announced approximately $85 million for heat pump manufacturers to ramp up the production of electric heat pumps, heat pump water heaters, and components for these systems.

The investment will be diverted to five factories located in New York, Tennessee, Texas, and Rhode Island.

This announcement represents the second round of funding from the DOE’s initiative, authorized under the Defense Production Act (DPA) due to climate change, to boost domestic manufacturing of key clean energy technologies.

Managed by the DOE’s Office of Manufacturing and Energy Supply Chains (MESC), these projects are expected to generate over 500 high-quality jobs, including 220 in disadvantaged communities.

This aligns with President Biden’s objectives of driving economic growth and ensuring the benefits of clean energy reach all communities.

“Extreme weather events are harming our grid and serving as a primary driver of higher electricity bills, underscoring the need to increase access to energy-efficient technologies,” said U.S. Secretary of Energy Jennifer M. Granholm.

She added, “The Biden-Harris Administration’s Investing in America agenda is manufacturing hundreds of thousands of energy-saving heat pumps here in the USA, helping American households and businesses keep money in their pockets all while strengthening our national security and creating good-paying jobs.”

The selected projects will advance the administration's efforts to build a clean energy economy, aligning with President Biden’s Justice40 Initiative and supported by the Inflation Reduction Act—the largest climate investment in U.S. history.

These initiatives are intended to create high-quality manufacturing jobs, help families and businesses lower their energy costs, and enhance national security by decreasing reliance on fossil fuels and foreign sources.