In a landmark move to accelerate the transition to clean energy, the U.S. Department of Energy (DOE) has announced a historic investment of $169 million for nine projects, marking the first awards under President Biden's utilization of the Defense Production Act (DPA). The funds are directed toward advancing electric heat pump manufacturing at 15 sites nationwide, aligning with the Biden-Harris Administration's commitment to combat climate change and bolster national security. These initiatives, covered under the Justice40 initiative, are funded by the Inflation Reduction Act—the largest climate investment in history.

The selected projects, funded by the DOE's authorization under the DPA, aim to revolutionize the production of electric heat pumps, addressing over 35% of all U.S. energy consumption related to heating and cooling buildings. Electric heat pumps not only enhance energy efficiency but also contribute to lowering greenhouse gas emissions by up to 50% compared to traditional gas boilers. This strategic investment is expected to create over 1,700 high-quality, good-paying jobs in disadvantaged communities, aligning with President Biden's goal of equitable economic growth.

Secretary of Energy Jennifer M. Granholm expressed the significance of the investment in American-made electric heat pumps, emphasizing the benefits for families and businesses in terms of energy savings and the creation of thousands of manufacturing jobs. John Podesta, Senior Advisor to the President for Clean Energy Innovation and Implementation, highlighted how these funds signal the administration's commitment to addressing climate change as a crisis, fostering domestic manufacturing, and enhancing American competitiveness in emerging industries.

The projects include key components such as compressors, refrigerants, and geothermal heat pumps, contributing to the Justice40 Initiative's goal of ensuring that 40% of the overall benefits of Federal climate investments benefit disadvantaged communities. This transformative initiative is a crucial step in reducing the nation's reliance on fossil fuels, improving energy independence, and mitigating the impacts of the climate crisis.

Source: energy.gov