Government awards $169 million for heat pump manufacturing

The DOE announced $169 million in funding to accelerate heat pump manufacturing at fifteen sites across the country. Nine companies will receive the funds, including York, Honeywell, and Armstrong.

Details: Last June, Biden authorized the DOE to utilize the Defense Production Act (DPA) — a law that allows the President to make economic decisions for national security purposes — to accelerate the manufacturing of clean energy technologies (heat pumps) on the basis of climate change.

• These awards mark the first time the DOE is exercising this authority.

“Today’s Defense Production Act funds for heat pump manufacturing show that President Biden is treating climate change as the crisis it is,” said John Podesta, Senior Advisor to the President.

The move has drawn criticism, however. Karen Harbert, head of the American Gas Association (AGA) said, “We are deeply disappointed to see the Defense Production Act, which is intended as a vital tool for advancing national security against serious outside threats, being used as an instrument to advance a policy agenda contradictory to our nation’s strong energy position.”

Looking ahead: Despite the conflicting opinions, it’s hard to ignore that heat pumps are a key part of the industry’s future. They make up a big chunk of the IRA’s $9 billion in homeowner incentives, and shipments have grown 150%+ over the past decade.