NEW ORLEANS — As part of the Biden administration’s Investing in America agenda, the U.S. Department of Energy (DOE) has budgeted $169 million for nine projects intended to accelerate the manufacture of heat pumps at 15 sites across the country.

The selected projects, which have not been finalized, would be the first awards coming out of DOE’s use of the Defense Production Act (DPA) to increase domestic production of five clean energy technologies, including electric heat pumps. The use of the DPA is based on President Joe Biden’s invoking emergency authority because of climate change.

Covered under the Justice40 initiative and funded by the Inflation Reduction Act (IRA), the selected projects are designed to help build a clean-energy economy, create good-paying manufacturing jobs, improve air quality, help families and businesses save money on energy bills, and increase national security by reducing the reliance on foreign adversaries for energy resources, a press release from DOE said. The projects together would create more than 1,700 jobs, supporting the president’s goals of spurring economic growth and maximizing the benefits of clean energy to all communities, the press release said.

“Getting more American-made electric heat pumps on the market will help families and businesses save money with efficient heating and cooling technology,” said Energy Secretary Jennifer M. Granholm. “Thanks to President Biden’s Investing in America agenda, these investments will create thousands of high-quality, good-paying manufacturing jobs and strengthen America’s energy supply chain, while creating healthier indoor spaces through home-grown, clean-energy technologies.”

“The President is using his wartime emergency powers under the Defense Production Act to turbocharge U.S. manufacturing of clean technologies and strengthen our energy security,” said Ali Zaidi, Biden’s climate advisor. “This acceleration of electric heat pump manufacturing also shows how President Biden’s Investing in America agenda is advancing American innovation, cutting energy bills for hardworking families, and tackling the climate crisis — a win, win for our economy, our workers, and our planet.”

Heating and cooling buildings accounts for more than 35% of all U.S. energy consumption. Heat pumps can provide comfortable temperatures for homes and businesses in all climates, especially when homes are well insulated, and can also provide efficient water heating, the DOE said. When compared to gas boilers, heat pumps reduce greenhouse gas emissions by up to 50%.

To help consumers afford heat pumps, tax credits are currently available through the IRA’s Energy Efficient Tax Credit program (the 25C credit in the tax code).

Heat pumps are critical to reducing the nation’s reliance on fossil fuels, bolstering national security, boosting energy independence, lowering consumer energy costs, improving energy efficiency, and mitigating the climate crisis, the DOE said.

The nine projects would boost the manufacture of electric heat pumps (air-to-air, geothermal, and air-to-water) and key components across 13 states. The nine companies chosen for the project, their manufacturing locations, and the products expected to be made at those locations are:

• Armstrong International Inc., Three Rivers, Michigan — industrial heat pumps.

• Bard Manufacturing Company, Madison, Georgia — single-package vertical-unit air conditioning and heat pumps.

• Copeland, Sidney, Ohio; Ava, Missouri; Lebanon, Missouri; and Cudahy, Wisconsin — compressors.

• Honeywell International, Geismar, Louisiana — refrigerant.

• Hydro Temp Corp., Pocahontas, Arkansas; and Albany, New York — geothermal heat pumps.

• Ice Air LLC, Spartanburg, South Carolina — cold-climate heat pumps and geothermal heat pumps.

• Mitsubishi Electric U.S. Inc., Kentucky — compressors.

• Treau Inc. (doing business as Gradient), Michigan — room heat pumps.

• York International Corp., Wichita, Kansas; Waynesboro, Pennsylvania; and San Antonio, Texas — residential and commercial heat pumps.

The DOE press release said the department anticipates moving quickly on another round of DPA investments in early 2024 to secure domestic manufacturing supply chains.

DOE’s Office of Manufacturing and Energy Supply Chains (MESC) leads DOE’s DPA investments, including the heat-pump program. Selection for award negotiations is not a commitment by DOE to issue an award or provide funding; before funding is issued, DOE and the applicants will undergo a negotiation process, and DOE may cancel negotiations and rescind the selection for any reason during that time.

The program advances the administration’s Justice40 Initiative, which sets the goal that 40% of the overall benefits of certain federal climate, clean energy, and other investments go to communities that have been marginalized by underinvestment and overburdened by pollution, DOE said.