The US Department of Energy (DOE) has allocated USD169m for nine projects to accelerate electric heat pump manufacturing at 15 sites across the country, in a move to promote clean energy innovation and implementation, as reported by Reuters on November 18. Notably, President Biden invoked emergency authority on the basis of climate change to utilize the Defense Production Act (DPA), a Cold War-era law, to increase domestic production of five key clean energy technologies, including electric heat pumps. The USD169m fund marks the first award under this authorization. According to the DOE, the selected projects will boost the production of American-made electric heat pumps and help families and businesses save money with efficient heating and cooling technology.

The heating and cooling of residential and commercial spaces, including critical infrastructure like military bases, account for over 35% of total US energy consumption. A shift towards electric heat pumps could reduce related greenhouse gas emissions by up to 50% compared to traditional boilers fueled by natural gas. The DOE highlighted electric heat pumps’ crucial role in reducing the nation’s reliance on fossil fuels, improving energy efficiency, and combating the climate crisis. Moreover, the DOE unveiled its plan to utilize the DPA for another round of investments in 2024 to secure domestic manufacturing supply chains. Last year, the department considered using the emergency powers granted by the DPA to boost the production of solar panels, transformers, and hydrogen fuel cells.

Sources:

https://www.reuters.com/business/energy/us-aims-speed-heat-pump-manufacturing-using-cold-war-era-law-2023-11-17/

https://www.energy.gov/articles/biden-harris-administration-announces-169-million-accelerate-electric-heat-pump

https://www.bloomberg.com/news/articles/2023-11-17/biden-uses-war-time-law-to-fund-heat-pumps-citing-climate-crisis