Grant from the Office of Manufacturing and Energy Supply Chain (MESC) within the Department of Energy (DOE) supports the manufacturing needed to meet anticipated growing demand for electric heat pump HVAC equipment.
“This is a milestone for our company,” said Ric Nadel, Ice Air Founder and CEO. “The advances in heat pump technology enable far greater efficiencies and immediate energy cost-savings. Ice Air is excited to build an American manufacturing resource that will provide customers greater access and will help protect them from supply-chain issues.”
Ice Air designs efficient and durable packaged through-wall systems, Geothermal water source heat pumps for space heating and cooling, and commercial size heat pumps for water heating and cooling. A wide range of markets that rely on this equipment for individual room temperature control include luxury and market-rate rental apartment buildings, affordable housing and hotels and travel lodges. The urgent need for multi-family residences, senior living and healthcare facilities is expected to further increase the booming demand.
Secretary, US Department of Energy
“The existing building demand for replacement, through-the-wall systems in New York City alone, is estimated at over 300,000 units,” Nadel added. There are limited cost-effective, climate-positive options available. Ice Air is uniquely positioned. By developing and enhancing these products, we will be able to offer the widest range of superior solutions for both new construction, replacements and renovations. I believe that is what caught the attention of the Department of Energy.”
“Getting more American-made electric heat pumps on the market will help families and businesses save money with efficient heating and cooling technology,” said U.S. Secretary of Energy Jennifer M. Granholm. 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 home-grown clean energy technologies.”
Secretary Granholm, called out Ice Air specifically in the official grant announcement, noted that heating and cooling homes, offices, schools, hospitals, military bases, and other critical facilities drives more than 35% of all U.S. energy consumption. Heat pump technology now can provide year-round comfortable temperatures in all climates with greater efficiency and cost-savings. It can also provides more efficient water heating.
Ice Air’s selection was invoked by President Biden using emergency authority based on climate change, to utilize the Defense Production Act (DPA) to increase domestic production of key clean energy technologies, including electric heat pumps.
An Important Personal Message from Ric Nadel, Founder & CEO
With sincere gratitude, we want our valued customers to be among the first to know that together we’ve reached an incredible milestone.
Without your support and collaboration this announcement would not be possible.
Ice Air is one of 9 manufacturers chosen by the Department of Energy’s Office of Manufacturing and Energy Supply Chain (MESC) to receive grant funding through the Defense Production Act. This initiative to establish a U.S. manufacturing site to produce Ice Air all-electric cold climate and geothermal heat pump equipment. Other leading manufacturers include Copeland, Honeywell, Mitsubishi Electric and York International, among others.
The goal of the DOE’s authorizations is to increase domestic production of five key clean energy technologies, including electric heat pumps. Funded by President Biden’s Inflation Reduction Act, —selected projects will promote a clean energy economy, create good-paying manufacturing jobs, improve air quality, and help families and businesses save money on their energy bills. And equally as important, this initiative will bolster national security by reducing reliance on foreign sources of energy equipment.
Relationships are the driver of success. Our achievement is your achievement.
When we started Ice Air, we made a commitment to forging powerful customer relationships. We keep your requirements top of mind, instead of just focusing on what we sell. Our defining questions of “What do you really need to succeed? To compete? To make your project easier?” drove us to constantly to serve you better through innovation. That goes beyond efficiency and performance. It extends to access, ease of installation and serviceability, and reliability.
Our achievement is your achievement. Upgrading the Ice Air cold climate heat pump line of products led to this opportunity. We are so proud that together we will help build a clean, efficient future. Ice Air will build a state-of-the-art facility in South Carolina fabricating heat exchangers, sheet metal and performing final assembly. The expected completion of the facility is 1st quarter 2026. It will include a Research & Development Center to further advance the development of all-electric products. With a domestic operation Ice Air will have greater ability to support and protect you from supply chain issues. Ice Air’s corporate headquarters, regional service and distribution facilities will remain in New York State.
The award process was incredibly rigorous, and it took the combined efforts of the entire Ice Air team to compose a winning application. I’m so proud of the team and want to take this opportunity to recognize and thank them as well for their efforts. A special thanks to our pioneering customers who placed their faith and confidence in Ice Air by utilizing our units for their building systems. Nothing happens without an order.
This is a momentous opportunity for our company, the community and the country. It is a historic step in the evolution as a cutting-edge creator of clean energy equipment. As the demand for heat pump technology grows, Ice Air will stand ready to lead the way for our customers.
The Ice Air plan to establish a new manufacturing facility within the United States by relocating production of Ice Air’s current product offerings from China to the United States was accepted and as a result Ice Air has been awarded a grant by the Office of Manufacturing and Energy Supply Chain (MESC) within the Department of Energy (DOE) to support the manufacturing needed to meet the anticipated growing demand for electric heat pump HVAC equipment.
The proposed location is Spartanburg, SC.
Ice Air is a leading supplier of high-efficiency electric heat pump technology for commercial residential buildings, and a leading provider for affordable housing in New York City. Ice Air is based in Mount Vernon, New York, and has been serving the U.S. and Canadian markets for 20 years. Ice Air’s existing product lines represent ALL the product lines this FOA is addressing. These include fully electric: • Cold Climate Air-to-Air Heat Pumps • Cold Climate Air-to-Water Heat Pumps • Geothermal Water-to-Air Heat Pumps. Ice Air has a 20-year history of successfully providing products to developers and contractors in the multifamily, dormitory, and facilities sector.
The objective is to create a manufacturing and assembly center in the U.S. capable of producing 10,000 cold climate air-to-air heat pumps, 5,000 geothermal water-to-air heat pumps, and 100 high-capacity cold climate air-to-water heat pumps annually.
While the entire Ice Air team was involved in this initiative – including key customers – the project was driven by Ric Nadel – Founder & CEO, project lead was George Petre – Corporate Controller, and the technical point of contact was Bill Liu – Director of Engineering.
Ice Air innovation led to the development of these Cold Climate Heat and Geothermal Heat Pumps. Innovation requires proof of concept, and our pioneering customers placed their faith and confidence in Ice Air by utilizing these units for their building systems in advance of full market penetration. Relationships are the driver of success.
The expected completion of the facility is the 1st quarter of 2026. It will include a Research & Development Center to further advance the development of all-electric products. With this domestic operation Ice Air will have greater ability to support and protect from supply chain issues. Ice Air’s corporate headquarters, regional service and distribution facilities will remain in New York State.
The Ice Air team explored numerous locations in several states. The Spartanburg area was selected for the following reasons: existing skill base, access to component suppliers, and a strong transportation infrastructure. This location is near Ice Air’s existing customer base. As most of Ice Air’s products are designed for cold climate environments, this location allows for expansion into future markets. Additionally, this location is zoned for manufacturing and distribution, located in a qualified opportunity zone, and eligible for state and local incentives.
As local initiatives such as New York City’s Local Law 97 become more predominant regionally and nationally, the required demand for comparable products will only continue to increase. Ice Air already has products approved by the Northeast Energy Efficiency Partnership, California Energy Commission, Mass Save and many other regional and local utility vendor incentive programs.
The goal is to establish a manufacturing and assembly facility in the United States that can support the production of 10,000 cold climate air-to-air heat pumps, 5,000 geothermal water-to-air heat pumps, and 100 high-capacity cold climate air-to-water heat pumps annually.
These quantities are based on actual and projected sales from 2022 through 2026. The quantities in the table below reflect actual sales by Ice Air, as well as buildings in design that plan to utilize these systems.
The market segment being addressed through this project is electric heat pump systems for both space heating and cooling, and water heating and cooling. Within those market segments, Ice Air is addressing both new construction equipment and replacement equipment for existing buildings.
Manufacturing in the U.S. will result in improved responsiveness. Lead times would be reduced from 16 weeks to 8 weeks, compared to importing from China. Our facility will give us adjustability to changing customer preferences and market trends. It will reduce shipping distances and proximity to key component suppliers, which will result in faster production and delivery times, including the critical component of an electric heat pump system: the heat exchanger.
Ice Air intends to source additional components from U.S.-based manufacturers, including compressors, fan motors, air moving components, regulating devices, electrical components, copper tubing, refrigerants, and associated accessories including storage tanks, hoses, and pumps. Expected purchases from domestic suppliers are $10 million annually with expected growth of 20% per year.
Ice Air has a long-standing relationship with Local Union Teamsters 1205. Most Ice Air’s union employees have been employed by the company for over 10 years. Ice Air has and continues to underwrite the costs of further education and skill development for employees. Ice Air provides the opportunity to achieve higher occupational designations and increased upward mobility. Ice Air engages with local unions, technical/trade schools, and colleges to enhance the workforce, ensure proper training, and provide opportunities to advance in both responsibility and compensation.
The final count is still being evaluated and will depend on final production capacities. We anticipate that the employee count for our new facility will be in the range of between 50 and 75 team members at startup with expected wages of over $3 million annually. As electric heat pumps become more prevalent, the number of employees and annual wages will continue to increase. However, please note that this estimate is subject to change as we continue our planning and recruitment efforts. Our goal is to ensure that we have the right team in place to meet the demands of the facility and provide excellent service to our clients. As we progress with the facility’s setup and hiring processes, we will provide updates on the actual employee count. We appreciate your understanding and flexibility as we work to finalize these details and build a successful team for the new facility.
A key factor in Ice Air’s location selection was the opportunity to build a facility with a low carbon footprint, which will lead to improved operational efficiency, productivity, and competitiveness, as well as the ability to utilize existing Ice Air products for heating, cooling, and domestic hot water production. Ice Air will invest in sustainable energy sources such as solar panels to produce electricity, minimizing the strain on the existing electrical grid. In keeping with its environmental philosophy, Ice Air’s main objective is to reduce dependence on fossil fuels while minimizing greenhouse gas emissions.