New York Launches $10 Million Challenge to Develop Cold-Climate Heat Pumps for Large Buildings
New York State is tackling the challenge of decarbonizing its aging buildings with a bold new incentive: a $10 million competition to develop heat pumps specifically designed for large, multifamily structures.
The Clean Heat for All contest, announced last month, aims to spur technological innovation and address the unique heating and cooling needs of New York’s countless pre-war apartment buildings. While heat pumps have become increasingly popular for single-family homes, large, older buildings pose a unique challenge – they often rely on outdated, inefficient systems that are expensive to replace.
“Investing in solutions that can easily replace older, less efficient units will reduce costs for building upgrades and can provide energy savings to consumers while lowering building emissions,” said New York Governor Kathy Hochul.
The contest challenges manufacturers to develop packaged terminal heat pumps – units designed to replace window air conditioners typically found in older multifamily buildings. These new heat pumps must be able to efficiently heat and cool buildings even in sub-zero temperatures, a requirement often missing in current models.
The innovative technology has the potential to significantly reduce building emissions in New York, which currently account for about one-third of statewide greenhouse gas emissions, primarily driven by the burning of fossil fuels for heating. The city’s housing stock is also notably older compared to other states, making decarbonization efforts more complex and costly.
Sweeping Out Old Tech for a Greener Future
Switching out these “notoriously inefficient” air conditioners doesn’t just provide better air conditioning for residents. According to a state report on building electrification, it also renders a building’s gas or electric heating systems unnecessary – eliminating the need for expensive upgrades in the process.
The program not only offers funding for the development of these prototypes but also provides support for yearlong field demonstrations in multifamily buildings and hotels, allowing manufacturers to test and refine their designs in real-world settings.
Applicants have until February 20, 2025, to submit proposals. This latest competition builds upon a series of state-launched initiatives to advance heat pump technology.
In 2021, the state challenged manufacturers to develop cold-climate window-unit heat pumps, and last year, another competition focused on advancing centralized heat pump heating systems for large buildings.
Meeting Ambitious Climate Goals
New York’s ambitious climate goals, particularly its aim to reduce carbon emissions by 40 percent by 2030, require innovative solutions to decarbonize its largest contributors to emissions – its buildings.
Local Law 97 in New York City requires buildings over 25,000 square feet to reduce their greenhouse gas emissions by this year, with heat pumps emerging as a key solution for property owners seeking to comply.
