ACEEE research has found that industrial heat pumps (IHPs) are a key technology for decarbonizing the industrial sector through the electrification of fossil-fuel generated process heat. However, the lack of domestic manufacturing of critical components is among the prominent barriers in the way of greater proliferation and implementation of IHPs. ACEEE believes that Defense Production Act (DPA) funds can help overcome this key barrier by creating a robust IHP market through financial support of domestic manufacturing. DPA funds can build on existing federal legislative momentum, meet the market demand for IHPs that is already growing in the industrial sector, and leverage existing manufacturing infrastructure to stand up a domestic IHP market that will help seize the immediate decarbonization potential, create jobs, and further environmental justice and equity.
