US companies are producing heat pumps that work below -20F
Heating and cooling equipment multinational Johnson Controls has developed an air source heat pump prototype that can operate in temperatures below -20F (-29C) as part of the US Department of Energy’s (DOE) Residential Cold Climate Heat Pump Challenge.
DOE launched this challenge because, according to the program’s fact sheet, “additional efforts are needed to address common technical and market barriers to wider adoption by consumers – which include performance at temperatures of 5F and below, installation challenges, and electricity grid impacts during peak demand periods.”
DOE is working with manufacturers to lab test cold climate heat pumps’ performance. Field testing will take place over the next couple years, and DOE is aiming for commercialization in 2024.
Besides Johnson Controls, other manufacturers such as Carrier, Trane, and Bosch are also taking part in the challenge.
Trane successfully completed its lab testing phase required by the heat pump challenge in early November and moved into the field trials phase. Katie Davis, vice president of engineering and technology, Residential HVAC, Trane Technologies, told Contracting Business in December that “there are no products in the market that currently meet the DOE CCHP Challenge performance specifications.” However, Davis said:
When tested at the DOE’s lab, the Oak Ridge National Lab Facility, Trane’s CCHP prototype performed in temperatures as low as -23F, surpassing the mandatory -20F Fahrenheit DOE requirement.
There are already units on the market in the United States that work at low temperatures – just not as low as the Johnson Controls or Trane prototypes. Johnson Controls currently has two residential heat pumps on the US market – the York YZV and York HMH7 – that can operate at temperatures as low as 5F (-15C). (Johnson Controls bought York in August 2005.) And Trane’s Platinum XV20i can operate at temperatures as low as 0F.
Check out this guide from Northeast Energy Efficiency Partnerships to learn more about heat pumps.
Read more: The heat pump market will more than double to $13B in cold climates by 2031
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Environment
Why OPEC+ is accelerating oil production as prices are tanking and tariffs hammer markets
The Phillips 66 Company’s Los Angeles Refinery in California.
Bing Guan | Reuters
The oil price outlook is being hit with more bearish forecasts on the back of U.S. President Donald Trump’s sweeping and market-hammering tariff announcements. Businesses and investors worry that a trade war and lower global growth lies ahead.
Goldman Sachs on Thursday reduced its December 2025 forecasts for global and U.S. benchmarks Brent crude and WTI by $5 to $66 and $62 a barrel, respectively, “because the two key downside risks we have flagged are realizing, namely tariff escalation and somewhat higher OPEC+ supply.”
The bank also cut its forecasts for the oil benchmarks in 2025 and 2026, adding that “we no longer forecast a price range, because price volatility is likely to stay elevated on higher recession risk.” Analysts at S&P Global Market Intelligence predict that in a worst-case scenario, global oil demand growth could be slashed by 500,000 barrels per day.
JPMorgan, for its part, raised its recession odds for the global economy to 60% for this year, up from a previous forecast of 40%.
Markets were therefore stunned when OPEC, which produces about 40% of the world’s crude oil — along with its non-OPEC allies that together comprise OPEC+ — chose not only to go ahead with its previously held plans to increase oil production, but also to nearly triple the expected increase figure.
Eight key OPEC+ producers on Thursday agreed to raise combined crude oil output by 411,000 barrels per day, speeding up the pace of their scheduled hikes and pushing down oil prices. The group — Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria, and Oman — was widely expected to implement an increase of just under 140,000 barrels per day next month.
The news pushed oil prices 6% lower.
OPEC+ bullishness and appeasing Trump
Several factors underpin the oil-producing alliance’s decision. One is that the group is bullish on oil demand later in the year, putting it firmly in the minority as investor outlooks sour and fears of a global slowdown worsen.
The eight OPEC+ members behind the production decision cited “the continuing healthy market fundamentals and the positive market outlook” in their statement Thursday, saying that “this measure will provide an opportunity for the participating countries to accelerate their compensation.”
The statement added that “the gradual increases may be paused or reversed subject to evolving market conditions.”
Another likely reason for the group’s move has to do with another T-word: the man in the White House, who during his first term in office and from the very start of his second, has loudly demanded that the oil producer group pump more crude to help bring down prices for Americans.
“First of all, this is partly about appeasing Trump,” Saul Kavonic, head of energy research at MST Marquee, told CNBC’s Dan Murphy on Friday.
“Trump will be putting pressure on OPEC to reduce oil prices, which reduces global energy prices, to help offset the inflationary impact of his tariffs.”
OPEC officials have denied that the move was made to appease Trump.
Compliance and market share
Meanwhile, as compliance is a major issue for OPEC+ — with countries overproducing crude beyond their quotas, complicating the group’s efforts to control how much supply it allows into the market — the move could be a way to enforce that, according to Helima Croft, head of global commodity strategy and MENA research at RBC Capital Markets.
“We think a desire by the OPEC leadership to send a warning signal to Kazakhstan, Iraq, and even Russia about the cost of continued overproduction underlies the decision.”
Helima Croft
head of global commodity strategy and MENA research at RBC Capital Markets
“We think a desire by the OPEC leadership to send a warning signal to Kazakhstan, Iraq, and even Russia about the cost of continued overproduction underlies the decision,” Croft wrote in a note published Thursday. She referenced the March 2020 oil price war, when Saudi Arabia flooded the market with supply to tank oil prices and forced Russia back into compliance after Moscow initially refused to curb production to help the alliance stabilize prices. The price war caused Brent crude prices to go as low as $15 a barrel.
The production increases are also “an example of OPEC increasing their market share,” Kavonic said, adding that it “ultimately does come at the expense of the United States [shale] patch,” which U.S. producers likely will not be too thrilled about.
What happens next?
OPEC+ appears confident about the market turning a corner in the coming months on the assumption that oil demand will increase in the summer and the tariff wars will be resolved in the coming months, said Nader Itayim, editorial manager at Argus Media.
“These countries are largely comfortable with the $70, $75 per barrel band,” Itayim said.
What comes next depends on the trajectory of the tariffs and a potential trade war. Oil dropping into the $60 range could force pauses or even a reversal in OPEC+ production increase plans, analysts say – although that is likely to be met with resistance from countries like Iraq and Kazakhstan that have long been itching to increase their oil production for their own revenues.
Whatever happens, the group maintains the flexibility to adapt its plans month by month, Itayim noted.
“If things don’t quite go the way they imagine, all it does take, really, is a phone call.”
According to a Tesla Semi customer, the electric truck program is suffering more delays and a price increase that is described as “dramatic.”
Tesla Semi has seen many delays, more than any other vehicle program at Tesla.
It was initially unveiled in 2017, and CEO Elon Musk claimed that it would go into production in 2019.
In late 2022, Tesla held an event where it unveiled the “production version” of the Tesla Semi and delivered the first few units to a “customer-partner”: PepsiCo.
More than 3 years later, the vehicle never went into volume production. Instead, Tesla only ran a very low volume pilot production at a factory in Nevada and only delivered a few dozen trucks to customers as part of test programs.
But Tesla promised that things would finally happen for the Tesla Semi this year.
Tesla has been building a new high-volume production factory specifically for the Tesla Semi program in a new building next to Gigafactory Nevada.
The goal was to start production in 2025, start customer deliveries, and ramp up to 50,000 trucks yearly.
Now, Ryder, a large transportation company and early customer-partner in Tesla’s semi truck program, is talking about further delays. The company also refers to a significant price increase.
California’s Mobile Source Air Pollution Reduction Review Committee (MSRC) awarded Ryder funding for a project to deploy Tesla Semi trucks and Megachargers at two of its facilities in the state.
Ryder had previously asked for extensions amid the delays in the Tesla Semi program.
In a new letter sent to MSRC last week and obtained by Electrek, Ryder asked the agency for another 28-month delay. The letter references delays in “Tesla product design, vehicle production” and it mentions “dramatic changes to the Tesla product economics”:
This extension is needed due to delays in Tesla product design, vehicle production and dramatic changes to the Tesla product economics. These delays have caused us to reevaluate the current Ryder fleet in the area.
The logistics company now says it plans to “deploy 18 Tesla Semi vehicles by June 2026.”
The reference to “dramatic changes to the Tesla product economics” points to a significant price increase for the Tesla Semi, which further communication with MSRC confirms.
In the agenda of a meeting to discuss the extension and changes to the project yesterday, MSRC confirms that the project went from 42 to 18 Tesla Semi trucks while the project commitment is not changing:
Ryder has indicated that their electric tractor manufacturer partner, Tesla, has experienced continued delays in product design and production. There have also been dramatic changes to the product economics. Ryder requests to reduce the number of vehicles from 42 to 18, stating that this would maintain their $7.5 million private match commitment.
In addition to the electric trucks, the project originally involved installing two integrated power centers and four Tesla Megachargers, split between two locations. Ryder is also looking to now install 3 Megachargers per location for a total of 6 instead of 4.
The project changes also mention that “Ryder states that Tesla now requires 600kW chargers rather than the 750kW units originally engineered.”
Tesla Semi Price
When originally unveiling the Tesla Semi in 2017, the automaker mentioned prices of $150,000 for a 300-mile range truck and $180,000 for the 500-mile version. Tesla also took orders for a “Founder’s Series Semi” at $200,000.
However, Tesla didn’t update the prices when launching the “production version” of the truck in late 2023. Price increases have been speculated, but the company has never confirmed them.
New diesel-powered Class 8 semi trucks in the US today often range between $150,000 and $220,000.
The combination of a reasonable purchase price and low operation costs, thanks to cheaper electric rates than diesel, made the Tesla Semi a potentially revolutionary product to reduce the overall costs of operation in trucking while reducing emissions.
However, Ryder now points to a “dramatic” price increase for the Tesla Semi.
What is the cost of a Tesla Semi electric truck now?
Electrek’s Take
As I have often stated, Tesla Semi is the vehicle program I am most excited about at Tesla right now.
If Tesla can produce class 8 trucks capable of moving cargo of similar weight as diesel trucks over 500 miles on a single charge in high volume at a reasonable price point, they have a revolutionary product on their hands.
But the reasonable price part is now being questioned.
After reading the communications between Ryder and MSRC, while not clear, it looks like the program could be interpreted as MSRC covering the costs of installing the charging stations while Ryder committed $7.5 million to buying the trucks.
The math makes sense for the original funding request since $7.5 million divided by 42 trucks results in around $180,000 per truck — what Tesla first quoted for the 500-mile Tesla Semi truck.
Now, with just 18 trucks, it would point to a price of $415,000 per Tesla Semi truck. It’s possible that some of Ryder’s commitment could also go to an increase in Megacharger prices – either per charger or due to the two additional chargers. MSRC said that they don’t give more money when prices go up after an extension.
I wouldn’t be surprised if the 500-mile Tesla Semi ends up costing $350,000 to $400,000.
If that’s the case, Tesla Semi is impressive, but it won’t be the revolutionary product that will change the trucking industry.
It will need to be closer to $250,000-$300,000 to have a significant impact, which is not impossible with higher-volume production but would be difficult.
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