USA: Biden-Harris Administration Announces $63 Million to Accelerate Electric Heat Pump Manufacturing Across America as Part of Investing in America Agenda
The U.S. Department of Energy (DOE) announced today that $63 million is available to promote the expansion of American production of home heat pumps, heat pump water heaters, and other heat pump systems and components. This announcement is part of President Biden's Investing in America strategy. Utilising the Defence manufacturing Act (DPA), this investment from President Biden's Inflation Reduction Act—invoked by President Biden's use of emergency authority based on climate change—aims to enhance domestic manufacturing of essential clean energy technology, such as electric heat pumps. This financing opportunity expands upon the $169 million initial round of funding awarded to heat pump and component makers in November 2023, which proved to be successful. In order to combat the climate problem, cut family energy expenses, lessen the country's dependency on fossil fuels, and improve national security, electric heat pumps are essential.
"These Defence Production Act dollars will further amp up domestic heat pump manufacturing to meet increasing consumer excitement, reduce emissions, and create clean energy jobs across the country as part of the Biden-Harris Administration's commitment to address the climate crisis,” stated U.S. Secretary of Energy Jennifer M. Granholm. "President Biden's Investing in America agenda is working—it's helping to supercharge America's clean energy economy and expanding high-quality job options for workers in underserved communities, in addition to making heating and cooling technology more accessible.
"Our homes and buildings may effectively receive heating, cooling, and hot water via heat pumps. Heat pumps effectively offer acceptable temperatures for heating and cooling homes and businesses in all climates because they transfer heat rather than creating it, especially in well-insulated homes. When compared to the most efficient condensing gas boilers available today, electric heat pumps can cut greenhouse gas emissions by up to 50%; by 2030, this number could reach 75%. Compared to traditional electric water heaters, heat pump water heaters can have an energy efficiency of two to three times higher. A greater number of American homes and businesses will experience reduced energy expenditures and healthier indoor environments with the increased usage of electric heat pumps for water heating and heating (also known as space conditioning).
Educating the workforce to support clean energy technology will be essential as the United States develops its clean energy economy. Acknowledging this necessity, the projects covered by the funding opportunity may suggest allocating a certain percentage of the funds to training personnel to handle the enlarged or new requirements of the facilities.
Additionally, this programme advances the Justice40 Initiative of the Biden-Harris Administration, which aims to transfer forty percent of the total benefits of certain Federal investments in clean energy, climate change mitigation, and other areas to underprivileged communities that are disproportionately burdened by pollution and underinvested in.
President Biden said in 2022 that DOE will be able to use the Defence manufacturing Act of 1950 (DPA) to increase manufacturing of five important clean energy technologies, including electric heat pumps. In order to develop a clean energy economy, provide well-paying manufacturing jobs, and assist people in lowering their energy costs, DOE's Office of Manufacturing and Energy Supply Chains is responsible for overseeing the DPA authority.
Source: Department of Energy