DOE Awards $250 Million to Deploy Industrial Heat Pumps Across Food and Chemical Manufacturing

WASHINGTON, DC — The United States Department of Energy (DOE) Office of Clean Energy Demonstrations (OCED) announced $250 million in grant awards through the Industrial Demonstrations Program, funding the installation of commercial high-temperature heat pumps across 15 food processing, pulp and paper, and chemical plants in 11 states.

Cutting Industrial Operating Costs with High-Efficiency Thermal Tech

The funding packages provide matching capital to replace legacy fossil fuel steam boilers with advanced industrial heat pumps capable of producing process temperatures up to 300°F (150°C) utilizing clean electricity. Participating facilities include dairy pasteurization plants in Wisconsin, paper mills in Maine, and specialty chemical manufacturers in Ohio, cutting facility thermal energy consumption by 50% and eliminating 400,000 metric tons of direct greenhouse gas emissions annually.

Energy Secretary Jennifer Granholm emphasized that industrial heat pump technology demonstrates that American factories can reduce operating costs and eliminate emissions while remaining globally competitive.

Manufacturing Associations and Energy Engineers Praise

The National Association of Manufacturers (NAM) praised the cost-share grants for de-risking advanced thermal electrification investments.

Industrial energy efficiency engineers highlighted that industrial heat pumps achieve coefficients of performance (COP) exceeding 3.0, generating three units of heat for every unit of electricity consumed.

Equipment Commissioning Timeline

Industrial heat pump engineering installation will begin across all 15 manufacturing sites in spring 2027.