Mitsubishi Electric Invests $143M to Retrofit Heat Pump Compressors Factory

Mitsubishi Electric Co. (MEC) is investing $143 million to retrofit a factory in Maysville, KY, to manufacture variable-speed compressors for high-efficiency heat pumps—the factory currently builds and sells automotive electrical equipment for Mitsubishi Electric Automotive America. Production will begin in October 2027 with an estimated yearly capacity of 1,000,000 compressors, meeting the U.S. demand for low-carbon-impact and energy-efficient heating, ventilation, and air conditioning solutions.

The Department of Energy’s (DOE) Office of Manufacturing and Energy Supply Chains awarded $50 million to MELCO HVAC US for the American production of high-efficiency heat pumps. Over a three-year period, the funding will be used to retrofit MEC’s factory with additional financial assistance from the Commonwealth of Kentucky.

The retrofitted factory represents the first time that variable-speed compressors with twin-rotary technology for ductless heat pumps will be manufactured on American soil, as over 90% of these heat pump compressors are currently manufactured in China and other Asian countries.

Mitsubishi News

In early December, Chevron Phillips Chemical and QatarEnergy’s joint venture, Golden Triangle Polymers Co., received its first turbomachinery shipment from Mitsubishi Heavy Industries Compressor International Corp. (MCO-I): successfully tested steam turbine-driven compressor packages for the project’s 2,080 KTA ethane cracker. The $8.5B Golden Triangle Polymers project—located in Orange County, Texas—integrates an ethane cracker and two polyethylene units in a 1,600-acre space.

Here is the breakdown of MHI Compressor’s equipment scope:

• three main compressor packages for the ethane cracker’s operation; each compressor is driven by special-purpose steam turbines
• cracked gas compressor
• propylene refrigerant compressor
• ethylene refrigerant compressor
• critical auxiliary equipment, such as surface condensers, integrated turbine compressor controls, and lube oil consoles
• three API 612 steam turbines
• four API 617 centrifugal compressors

MCO-I Houston is providing installation services and engineering support onsite during construction. The plant is planned to start up in 2026.

In late November, Aisan Industry, through Obayashi Corp., placed an order with Mitsubishi Heavy Industries Thermal Systems (MHI Thermal Systems) for a large-scale Aquifer Thermal Energy Storage (ATES) system to provide air conditioning at its Anjo Plant. The ETI-Z25.HP centrifugal chiller has a cooling capacity of 234 refrigeration tons (RT)—823 kW per unit—and supplies both hot and cold water. This ATES implementation project will begin in winter 2025 and represents MHI Thermal Systems’ first practical application outside the Kansai region.

Using high-efficiency centrifugal chillers and control technologies, such as automatic switching of optimal operating modes, may reduce yearly CO₂ emissions by approximately 50%. The system uses HFO-1233zd refrigerant, which has the lowest global warming potential to minimize its environmental impact. Overall, the system offers energy-saving performance, optimal control technology, and improved operational performance. Due to these features, Japan’s Ministry of the Environment for the Fiscal 2023 awarded the ATES system under the Subsidy for CO₂ Emission Control Measures Project Expenses.

And in October, MHI Thermal Systems signed an agreement with Empower to supply large-scale centrifugal chillers for district cooling plants in Dubai, United Arab Emirates. Per the agreement, MHI Thermal Systems will deliver 18 advanced chillers, ready for delivery by 2025, with an aggregate cooling capacity of 56,250 RT.