New York Governor Kathy Hochul and New York City Mayor Eric Adams announced an initial investment of $70 million by the New York City Housing Authority, New York Power Authority and New York State Energy Research and Development Authority for the development and production of 30,000 heat pump units for use in New York City Public Housing facilities.
The NYPA Board of Trustees awarded the funding via two seven-year contracts to Midea America and Gradient to develop cold climate packaged window heat pump units. Midea America, a global appliance manufacturer, has been awarded a contract for 20,000 units, while startup Gradient has a contract for 10,000 units. The unit by Gradient will be a cold climate heat pump, capable of operating at low temperatures based on the specifications outlined by the NYCHA. The company plans to manufacture the product in the U.S.
The contracts are the latest milestone in the Clean Heat for All Challenge, which is an initiative led by the NYCHA, NYPA, and NYSERDA to develop an electrification product to better serve the building heating and cooling requirements and transition to fossil-free heating.
“Prioritizing green investments in public housing ensures the State's bold climate agenda is equitable - benefiting all New Yorkers now and for decades to come,” Gov. Hochul said. “All NYCHA residents deserve high quality homes and New York will continue to take aggressive measures to help ensure residents have the safe, livable, and quality affordable housing they deserve."
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Interim NYPA President and CEO Justin E. Driscoll said, "NYPA is excited to progress the Clean Heat for All Challenge through the selection of the initiative's first vendors, which will develop and produce 30,000 heat pump units for the benefit of NYCHA residents. The Decarbonization of buildings—the state's largest carbon emissions source—is critical to achieving the Governor's ambitious climate change goals."
Heat pump technology uses a single unit for efficient cooling and heating by moving heat between indoor and outdoor spaces as per the season. A refrigeration cycle is used in the process that can be four times more efficient that traditional heating systems.
Over the next year, NYPA will work with Midea and Gradient on testing and demonstration of the new product. NYPA and the NYCHA will install 60 of the developed units in designation public housing, monitored and assessed over winter. This will be followed by the widespread installation of the rest of the units.