Rising global temperatures and the deadly heatwaves they spawn are spurring governments worldwide to support new efforts to boost cooling technologies.
Many of these measures have focused on promoting more energy-efficient and environmentally sustainable temperature control methods in the advanced economies of the U.S. and European Union, while developing economies are focusing on expanding access to technology and adopting the most efficient cold chain and refrigeration solutions.
The U.S. Department of Energy (DOE) and various European funding programs are orchestrating opportunities to revolutionize the HVACR, chiller, and data center cooling sectors.
Image Credit: UNEP Global Cooling Watch 2023
Funding Opportunities in the U.S.
In the United States, the DOE has unveiled a comprehensive funding strategy for 2024-2028, targeting the HVACR and cooling technology sectors through various offices and initiatives, promising substantial financial support. The Advanced Manufacturing Office (AMO) spearheads efforts with its Onsite Energy Technical Assistance Partnerships (TAPs), allocating up to $23 million to enhance energy efficiency and resilience within industrial operations. TAPs support the adoption of advanced cooling systems and other energy-saving technologies. Additionally, AMO’s Cross-Sector Technologies Funding addresses innovations spanning multiple industries, including advanced cooling technologies crucial for manufacturing and data centers. While the financial specifics for this initiative were not disclosed, it forms part of broader funding strategies for cross-sectoral technological advancements.
The Building Technologies Office (BTO) drives innovations in building decarbonization through its flagship program, Building Energy Efficiency Frontiers & Innovation Technologies (BENEFIT) 2024. With up to $30 million earmarked, BENEFIT targets advancements in HVAC systems and building resilience technologies. The Advanced Building Construction (ABC) Initiative, another critical component of BTO’s strategy, aims to integrate energy efficiency solutions into U.S. construction practices, supporting technologies that improve energy performance in buildings. Although specific funding amounts for the ABC Initiative were not detailed, its role in facilitating the adoption of high-performance building technologies is clear.
The Industrial Efficiency and Decarbonization Office (IEDO) focuses on energy and emissions-intensive industries. For fiscal year 2024, IEDO has allocated over $100 million to field demonstrations and research aimed at improving efficiency and reducing emissions in industrial processes, including advanced cooling technologies. The Cross-Sector Technologies Funding Opportunity Announcement further supports projects developing technologies applicable across various sectors, emphasizing energy efficiency and greenhouse gas reduction. IEDO’s Technical Assistance Partnerships (TAPs) also play a crucial role, providing support to large energy users transitioning to clean energy technologies, including advanced cooling systems.
Complementing these initiatives, the Title 17 Clean Energy Financing Program, administered by the DOE’s Loan Programs Office (LPO), provides loan guarantees for clean energy projects, including HVACR and cooling technologies. Projects must demonstrate significant greenhouse gas reductions and commercial viability to qualify. This program offers a critical financial backbone for high-risk, high-reward projects, although the exact budget allocation is not specified.
Image Credit: UN Environmental Programme: Strategies for Sustainable Space Cooling
EU Funding for Chilling Out
Across the Atlantic, the European Union complements its member states’ efforts through Horizon Europe and the European Innovation Council (EIC) Accelerator, offering substantial non-dilutive funding for technological advancements. The EIC Accelerator, part of Horizon Europe, provides up to €2.5 million in grants for high-impact innovations, particularly for SMEs and startups. The overall budget for 2024 is €1.2 billion, focusing on deep tech innovations across various fields, including HVACR and data center cooling technologies. Horizon Europe, the EU’s flagship funding program for research and innovation, offers a sprawling budget of €95.5 billion for 2021-2027, with approximately 35% earmarked for climate action, directly benefiting sectors focused on energy-efficient technologies.
Germany’s Central Innovation Programme for SMEs (ZIM) offers grants for a broad spectrum of technological innovations, with a budget exceeding €500 million. The Federal Office for Economic Affairs and Export Control (BAFA) provides energy efficiency grants, particularly for innovative cooling systems in industrial applications. In France, the Agency for Ecological Transition (ADEME) supports projects that drive environmental protection and energy savings, with over €700 million allocated for 2024. Bpifrance complements these efforts by offering innovation grants and loans to SMEs, including those in the HVACR sector.
The Netherlands fosters innovation through the WBSO (R&D Tax Credit), which provides substantial tax incentives for companies engaging in R&D activities, with a budget of around €400 million. The MIT Scheme (SME Innovation Stimulation Top Sectors) supports innovation projects in top sectors, including energy-efficient cooling solutions. In Spain, the Centre for the Development of Industrial Technology (CDTI) and the Institute for the Diversification and Saving of Energy (IDEA) spearhead funding for technological innovations, with a combined budget exceeding €600 million. These programs support energy-efficient projects, crucial for advanced cooling technologies. Italy’s Ministry of Economic Development (MISE) Innovation Fund and the Smart&Start Italia program provide a robust framework for supporting innovative startups and SMEs, with a budget of approximately €500 million.
Image Credit: UNEP Global Cooling Watch 2023
Funding Innovation for Cooling the World
The concerted efforts of the DOE in the U.S. and various European funding bodies underscore a robust commitment to fostering innovation in the HVACR, chiller, and data center cooling sectors. With substantial financial support available, exceeding €3 billion across Europe and significant allocations in the U.S., these initiatives provide a clear pathway for technological advancements.
This funding not only catalyzes technological breakthroughs but also ensures that innovations contribute to a sustainable and equitable energy future. For stakeholders, detailed information on applying and specific criteria for each program can be found on the respective funding agencies’ websites, offering a comprehensive guide to securing support for groundbreaking projects.
As the world pivots towards more sustainable energy solutions, the alignment of governmental support with industry innovation will be crucial. This collaborative effort between public and private sectors could well determine the pace and success of global decarbonization efforts, making these funding programs indispensable tools in the fight against climate change.