Michigan manufacturers score $22M from Biden’s Inflation Reduction Act

Funding from the US Department of Energy is set to help two Michigan companies expand electric heat pump manufacturing in St. Joseph and Oakland counties. 

MICHIGAN—About $22 million in federal funding made possible through President Joe Biden’s Inflation Reduction Act is headed to Michigan to help two companies expand their manufacturing operations, the Michigan Infrastructure Office announced this month.

Armstrong International in Three Rivers will receive $5.1 million to increase its manufacturing capacity of industrial heat pumps, and Gradient Comfort in Oakland County will receive $17.5 million to expand its manufacturing capacity of easy-install room heat pumps.

The federal investment in heat pumps will create new jobs, lower costs for families and businesses, and create healthier indoor environments, Gov. Gretchen Whitmer said.

“Michigan is bringing home millions of dollars from President Biden’s Inflation Reduction Act to support good-paying jobs manufacturing heat pumps that will drive down utility bills for families,” Whitmer said in a statement. “Michigan is leading and building the future of clean energy, and with federal support, we will supercharge our efforts to create middle-class manufacturing jobs, lower costs for families and small businesses, and improve access to reliable power. ” 

State officials said heating and cooling buildings drive more than 35% of all US energy consumption. Electric heat pumps can provide more efficient heating—saving the average homeowner about $500 per year, depending on the energy efficiency of their home.

Electric heat pumps also don’t burn fuel—which aligns with the state’s goal to serve as a global leader in the development of clean energy technology. Michigan Chief Infrastructure Officer Zachary Kolodin said that electric pumps will also reduce the risk of carbon monoxide leaks.

“This latest funding announcement is a testament to Michigan’s commitment to bringing home these investments and dispersing them in our communities while growing our position as a national and global leader in clean energy,” Kolodin said in a statement. 

Since the passage of Biden’s Inflation Reduction Act, Michigan has punched well above its weight to secure more federal climate funding than nearly every other state in the nation.

According to a study from Atlas Policy, Michigan has collected more than $1.3 billion in federal funding to support at least 99 projects related to infrastructure and clean energy projects since the two laws were signed—more than any other US state or territory except California.

“Getting more American-made electric heat pumps on the market will help families and businesses save money with efficient heating and cooling technology,” US Secretary of Energy and former two-term Michigan Governor Jennifer M. Granholm said in a statement. “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 American-made clean energy technologies.” 

READ MORE: Biden’s hydrogen hub to bring thousands of new energy jobs to Michigan

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