SCHUMER SECURES $5+ MILLION FOR SYRACUSE’S BITZER SCROLL TO INCREASE ELECTRIC HEAT PUMP MANUFACTURING CAPACITY VIA THE DEFENSE PRODUCTION ACT, CREATING 20 NEW GOOD-PAYING CLEAN ENERGY JOBS IN CENTRAL NY

Schumer Helped Deliver Major Clean Energy Rebates In The Inflation Reduction Act To Help Families Lower Costs, Driving Demand For New Domestically Made Heat Pumps Like Syracuse’s BITZER Scroll Supplies, But To Meet That Demand & Sustainability Goals They Needed To Ramp Up Production

After Schumer Personally Advocated To Secretary Of Energy, Senator Delivers Highly Competitive Defense Production Act $$ To Boost BITZER Scroll’s Manufacturing Of Heat Pump Components In Central NY, Add Good-Paying Local Jobs, & Help Secure America’s Supply Chain For This Critical Technology, Reducing Our Reliance On Overseas Producers

Schumer: Feds Are Pumping Major $$ Into Syracuse To Build Future Of America’s Clean Energy Workforce

U.S. Senate Majority Leader Charles E. Schumer announced $5,005,252 in federal funding to help BITZER Scroll increase its production of electric heat pump components at its Syracuse factory, helping to create 20 new good-paying clean energy jobs. The funding, which comes from the U.S. Department of Energy’s Heat Pump Defense Production Act (DPA) Program, will help BITZER Scroll enhance the domestic production capacity of commercial scroll compressors for electric heat pump applications to strengthen the domestic supply of this technology that is surging in demand to help families lower costs thanks to the Inflation Reduction Act.

“The feds are pumping in over $5 million to help Syracuse’s BITZER Scroll ramp up production and create 20 new good-paying jobs building the future of America’s electric heat pump supply chain. We created historic new clean energy rebates in the Inflation Reduction Act to help families lower costs and upgrade their homes with this technology, but as demand increases we also need to ensure the future of this technology is being made in America,” said Senator Schumer. “Investing in Syracuse-made heat pump manufacturing will make America’s energy supply chain more secure by reducing our reliance on overseas manufacturers all while helping families lower energy costs. I pushed for this federal funding and am proud to deliver it because I know this project will be a win for BITZER Scroll, a win for Central NY’s workforce, and a win for American supply chains as we work to make the future of clean energy here on our shores. Together, we are making sure that companies have the federal support they need for Central NY to be a leader in American innovation and manufacturing.”

Schumer said that BITZER, which is one of just four awardees in this highly competitive round of Department of Energy (DOE) funding, plans to use this federal investment to increase the manufacturing capacity of its innovative, high-efficiency 7.5-to-50 -ton scroll compressors by tens of thousands of units annually. More specifically, BITZER will use the funding to bolster facility infrastructure to support greater electrical load, increase capacity by adding new computer numerical control machining centers, and establish a new assembly line to meet anticipated production requirements. BITZER has committed to nearly $6 million of matching investment to realize its manufacturing expansion.

“On behalf of us all at Bitzer, I would like to Senator Schumer for advocating to help us secure this highly competitive $5 million award from the US Department of Energy to add 20 new jobs and expand compressor manufacturing operations in our home of nearly two decades, Syracuse NY. Bitzer is a global company that is built on the talents and loyalties of our employees, a focus on producing in and for local markets, and strong partnerships with leaders like MACNY and Senator Schumer” said John Allcott, VP Operations North America, BITZER SE. “This DOE funding along with BITZER’s own multi-million dollar investment will allow us to expand production of the advanced, high efficiency compressors we are renowned for and are required to manufacture the next-generation of heating and cooling systems in North America. The DOE award supports the wider issues of lowering CO2 emissions using electrical power derived from Green Energy sources and supporting the manufacturing of these products and systems in the USA.”

MACNY President & CEO Randy Wolken said, "MACNY would like to congratulate BITZER Scroll on receiving this critical federal funding to improve infrastructure and production at its Syracuse facility. Heat pumps play a significant role in reducing the nation’s reliance on fossil fuels, bolstering national security, and improving energy efficiency.  We greatly appreciate Senator Schumer's advocacy and his continuous support of manufacturing throughout our region and beyond."

BITZER Scroll aims to support the DOE’s goal of providing affordable solutions to building decarbonization by helping expand the production capacity of commercial and industrial heat pump compressors. The project targets increasing annual production capacity by over 50% to meet projected U.S. customer demand for this product and BITZER plans to add a new assembly line to meet the anticipated production requirements. This funding will directly support U.S. manufacturing output of electric heat pumps by increasing the domestic production volume of one of the primary components. The market availability of reliable, efficient scroll compressors is critical to the supply chain of commercial heat pumps. Schumer emphasized that this funding, delivered through the Defense Production Act, is critical to helping BITZER compete with scroll producers in other countries and boosting American national security by reducing our dependence on foreign competitors.

Schumer’s landmark Inflation Reduction Act provides nearly $400 billion to support clean energy and address climate change, including $8.8 billion for Home Energy Rebates. These rebates lower costs for families and increase demand for heat pumps and their components like those made at Syracuse’s BITZER Scroll. Schumer wrote a letter to Department of Energy Secretary Jennifer Granholm in July explaining that federal funding will help this project meet increased demand while creating 20 new good-paying jobs for Central NY and supporting the growth of America’s vital heat pump supply chain.

Schumer, who visited BITZER Scroll’s local plant in 2011, says the company stands as a key example of Central New York’s proud manufacturing legacy, helping to bring manufacturing and good-paying jobs back to the region after years of offshoring and cuts. In 2009, BITZER officially opened its second U.S. manufacturing plant, investing $20 million in 60,000 square feet of compressor production space at the former General Motors Inland Fisher Guide plant in Salina. A little over two years later, BITZER invested in a $5.5 million move to a larger facility at the former John Deere warehouse in DeWitt, expanding production to include a line of compressors for smaller buildings and adding good-paying jobs to BITZER’s local workforce and boosting sales. BITZER currently has approximately 150 employees in Central New York.

BITZER Scroll manufactures scroll compressors which are primary components in commercial and industrial electric heat pumps and chillers. BITZER, a German-based company, is a global leader in developing compressor technology which is essential to maintaining ideal temperatures in places such as buildings, trains, and buses. BITZER is focused on increasing energy efficiency, and this funding from the Department of Energy will help it meet sustainability goals.

Schumer’s letter to Department of Energy Secretary Granholm can be read below:

Dear Secretary Granholm:

I am pleased to write in support of the application submitted by BITZER Scroll to the Department of Energy’s (DOE) Heat Pump Defense Production Act Program.

With funding, BITZER Scroll will increase its manufacturing capabilities in Syracuse, New York. This initiative represents a significant step in advancing our national energy efficiency and sustainability goals while boosting our local communities' economic resilience.

BITZER Scroll’s expansion project is poised to significantly enhance the domestic production capacity of commercial scroll compressors for electric heat pump applications. This endeavor aligns seamlessly with the federal objectives to promote cleaner and more efficient energy solutions, reducing overall CO2 emissions and paving the way for a greener economy. Specifically, the BITZER Scroll compressors are a state-of-the-art design for heat pump systems to decrease energy consumption and operational costs for end-users nationwide.

Moreover, the project is committed to the Justice40 initiative, ensuring that at least 40% of the benefits, such as high-quality job creation and specialized training programs for the local workforce, are directed toward the disadvantaged communities in Syracuse. The project outcome will equip the local workforce with the necessary skills to thrive in the burgeoning sector of clean technology. Additionally, BITZER Scroll's initiative to partner with community development organizations, such as MACNY and Center for Community Alternatives, promises to invigorate the local economy, providing a multiplier effect that will benefit a wide range of community members. This focused approach addresses environmental justice and supports economic development in the disadvantaged community.

I applaud BITZER Scroll for its foresight and sincerely hope the application is met with your approval. If you have any questions, please do not hesitate to contact me or my grants coordinator in my Washington, DC office at (202) 224-6542. Thank you for your consideration.

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