$250 Mln Funding To Accelerate Electric Heat Pump Manufacturing Across US

The U.S. Department of Energy has announced a $250 million funding opportunity to accelerate electric heat pump manufacturing in the country.

This is the first funding announcement under DOE’s new authorization, invoked by President Joe Biden last summer, to utilize the Defense Production Act (DPA) to increase domestic production of five key clean energy technologies, including electric heat pumps.

This funding, provided by the Inflation Reduction Act, will be used to building a clean energy economy, creating good-paying manufacturing jobs, and helping families save money on their energy bills. Increased use of electric heat pumps, for heating and cooling, will help lower energy costs for more American families and businesses and create healthier indoor spaces through American-made clean energy technologies.

“Electric heat pumps offer a cheaper, more reliable option for heating and cooling that isn’t prone to dramatic price swings and helps to strengthen the nation’s energy independence.,” said U.S. Secretary of Energy Jennifer M. Granholm.

It is estimated that heating and cooling buildings, homes, offices, schools, hospitals, military bases, and other critical facilities drive more than 40 percent of all U.S. energy consumption. Because heat pumps transfer heat rather than generate heat, this technology 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.

DOE said it is extending applications to manufacturers that are interested in creating new facilities or expanding existing production capacity to efficiently develop more electric heat pump systems, components, and materials in the United States.

DOE is seeking projects that will construct new commercial-scale facilities or expand existing facilities to create new or additional domestic production capability; retool or retrofit existing commercial-scale facilities to?transition manufacturing from non-heat pump HVAC systems and/or water heating equipment to produce electric heat pump materials, heat pump components, and heat pump systems?; and invest in the United States’ clean energy manufacturing workforce by providing good-paying, union jobs.

Concept papers, which are required for all applicants, are due on May 19 at 5 p.m. ET. Full applications are due on August 1 at 5 p.m. ET.

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