Johnson Controls Awarded DOE Grant to Accelerate U.S. Heat Pump Manufacturing

Rhea-AI Summary

Johnson Controls (NYSE: JCI) receives a $33 million grant from the U.S. Department of Energy to expand production of electric heat pumps at its facilities in San Antonio, Texas, Wichita, Kansas, and Waynesboro, Pennsylvania. The expansion will create approximately 1,000 new U.S. jobs and will increase production by nearly 200%, resulting in an estimated 200,000 electric heat pumps per year. This initiative aims to drive energy affordability, security, and combat climate change. The company estimates that the increased production will cut an estimated 25 million metric tons of CO² per year.

Positive

• The $33 million grant from the U.S. Department of Energy's Office of Manufacturing and Energy Supply Chains will significantly boost Johnson Controls' production capabilities.
• The expansion of production will create approximately 1,000 new U.S. jobs, contributing to the improvement of employment rates in the country.
• The initiative will increase the production of electric heat pumps by nearly 200%, resulting in an estimated 200,000 electric heat pumps per year.
• The increased production aims to drive energy affordability, security, and combat climate change, which aligns with the current global focus on sustainability.

Negative

• None.

• Facilities in San Antonio, Texas, Wichita, Kansas, and Waynesboro, Pennsylvania, will expand to scale production, creating approximately 1,000 new U.S. jobs
  
  
• Updated plants will produce an estimated 200,000 residential, commercial and industrial heat pumps combined – a production increase of 200%
  
  
• Increased production will cut an estimated 25 million metric tons of CO_² per year

MILWAUKEE, Nov. 20, 2023 /PRNewswire/ -- Johnson Controls (NYSE: JCI), the global leader for smart, healthy and sustainable buildings, has been awarded a $33 million grant from the U.S. Department of Energy's (DOE) Office of Manufacturing and Energy Supply Chains to help increase domestic production of electric heat pumps by expanding three U.S.-based manufacturing sites. Combined, these facilities will be able to produce approximately 200,000 electric heat pumps per year, representing a nearly 200% production increase. This substantial volume will help drive energy affordability and energy security, while helping combat climate change and creating new jobs.  

"We are thrilled to participate in this program and help drive the enormous impact it will have on energy security, reliability and affordability while achieving unprecedented progress in slashing carbon. We also are excited to create 1,000 new family sustaining jobs – a great boost for the communities we call home," said Katie McGinty, vice president and chief sustainability and external relations officer, Johnson Controls.

The grant is part of the first award from DOE's authorization by the Biden Administration to utilize the Defense Production Act (DPA) to increase domestic production of five key clean energy technologies, including heat pumps. The Johnson Controls' project expands production of its York product line at its plants in San Antonio, Texas, Wichita, Kansas, and Waynesboro, Pennsylvania. Within these communities, Johnson Controls is partnering with local unions, economic development groups, and community colleges to expand internship, apprenticeship and long-term full time job opportunities.  

Upon completion, Johnson Controls estimates the initiative will save 1.63 million metric tons of CO_² emissions from residential heating and 25 million metric tons from commercial and industrial heating per year – the equivalent to greenhouse gas emissions from more than 5.5 million gasoline-powered vehicles driven for one year. The investment also will highlight the versatility of heat pump applications, which, in North America, have historically been concentrated in the residential sector.

"As we move toward achieving nation-wide reductions in greenhouse gas emissions, it is critical that our commercial, institutional and industrial sectors have the technologies necessary for effective decarbonization," McGinty added. "Some of our heat pumps will help homeowners cut their energy bills, while others can play a major role in commercial industries. For example, we already are working with large scale institutions on heat pump deployments that will cut emissions by more than 70% and costs by more than 60%."

Johnson Controls' heat pump customers have seen incredible results and are making immense progress toward their sustainability goals, not just in terms of carbon emissions, but also in reducing water use. Johnson Controls' heat pumps use electricity to efficiently move heat, rather than burn fuel. This makes heat pumps, which transfer three to eight times more working energy than they consume, a critical tool for reducing greenhouse gas emissions and cutting costs. Johnson Controls offers the world's most comprehensive range of heat pumps across residential, commercial, and industrial applications, and was recently recognized on Fortune's 2023 Change the World list for innovative and transformative heat pump technology.

Additionally, Johnson Controls' ongoing workforce development programs across the country are helping inspire and prepare tomorrow's talent for these high-demand and critical careers, like electric heat pump production, installation and servicing. This includes the company's largest philanthropic initiative, the Community College Partnership Program, which is investing $15 million in 30 colleges across the United States to graduate students from historically underrepresented groups and support them in preparing for and embarking on career paths in sustainable building practices.

To learn more about Johnson Controls heat pump technology, visit: johnsoncontrols.com/whatisaheatpump. 

About Johnson Controls
At Johnson Controls (NYSE:JCI), we transform the environments where people live, work, learn and play. As the global leader in smart, healthy and sustainable buildings, our mission is to reimagine the performance of buildings to serve people, places and the planet.

Building on a proud history of nearly 140 years of innovation, we deliver the blueprint of the future for industries such as healthcare, schools, data centers, airports, stadiums, manufacturing and beyond through OpenBlue, our comprehensive digital offering.

Today, with a global team of 100,000 experts in more than 150 countries, Johnson Controls offers the world`s largest portfolio of building technology and software as well as service solutions from some of the most trusted names in the industry.

Visit www.johnsoncontrols.com for more information and follow @JohnsonControls on social platforms.

Media contact
media@jci.com

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SOURCE Johnson Controls International plc

What is the purpose of the $33 million grant awarded to Johnson Controls?

The grant aims to help Johnson Controls expand production of electric heat pumps at its facilities in San Antonio, Texas, Wichita, Kansas, and Waynesboro, Pennsylvania, to increase domestic production of electric heat pumps.

How many new jobs will be created as a result of the expansion?

The expansion will create approximately 1,000 new U.S. jobs.

What is the estimated increase in production of electric heat pumps?

The expansion will result in an estimated 200,000 electric heat pumps per year, representing a nearly 200% production increase.

What impact is the increased production expected to have on CO² emissions?

The increased production is estimated to cut an estimated 25 million metric tons of CO² per year.

What technologies are being utilized to achieve the increased production?

The increased production of electric heat pumps will utilize advanced heat pump technology to drive energy affordability, security, and combat climate change.