Honeywell to Reduce Energy Costs and Environmental Impact for U.S. Coast Guard

Honeywell (NYSE:HON) today announced it will upgrade building systems, and cut energy costs and greenhouse gas emissions at nine U.S. Coast Guard locations across California, Hawaii, Oregon and Washington. The improvements — which include innovative solar-powered utility metering and hot water technology — are expected to help the Coast Guard reduce its utility bills for these locations by more than 15 percent.

The 11-year, $15.1-million conservation program will impact 2.2 million square feet of space across more than 250 buildings. The work is funded by the energy savings the facility improvements generate. Honeywell guarantees the savings through a performance contract so the work should not increase Coast Guard operating budgets or require additional taxpayer dollars. This is Honeywell's second performance contract with the Coast Guard since 1999.

“This program will allow us to improve facilities and reduce energy costs with no upfront capital investment,” said Commander Tom Hickey with the U.S. Coast Guard. “As a result, we’re able to devote more resources to mission-critical assets, such as boats and aircrafts, which allow the Coast Guard to better perform its duties.”

The program also will deliver environmental benefits along with the cost savings. For example, the conservation measures are expected to reduce annual carbon dioxide emissions by more than 7.5 million pounds. According to figures from the U.S. Environmental Protection Agency, this is equivalent to removing almost 750 cars from the road or saving nearly 400,000 gallons of gasoline per year.

Under the new contact, Honeywell will implement a comprehensive energy management system across most of the Coast Guard's facilities on the West Coast using Honeywell Enterprise Buildings Integrator™ and Honeywell Energy Manager. This will provide centralized building systems control, as well as real-time reports on energy use and cost savings, which will help the Coast Guard drive ongoing operational improvements. The management system will gather the data for the reports from a solar-powered network of wireless utility meters.

Throughout the buildings, Honeywell will put in modern boilers and chillers, high-efficiency motors for heating, ventilation and air condition systems, and almost 1,500 high-efficiency toilets and faucets. In addition, the company will: install more than 170 solar collectors for hot water generation; retrofit the Coast Guard's existing light fixtures and compressed air systems used for buoy maintenance; and add daytime lighting, such as skylights, for improved energy efficiency.

Honeywell also will provide ongoing measurement and verification services, as well as continuous training so rotational Coast Guard staff know how to operate the energy management and metering technology.

The current work builds on projects completed under the initial contract awarded in 1999, which focused on the Coast Guard’s Alameda, Calif. facility. That $1.5-million program exceeded the savings guaranteed in the contract by 12 percent. It also helped capture more than $170,000 in utility incentives and rebates to further lower costs.

“As one of our largest efforts in terms of scope and complexity, the work with the Coast Guard demonstrates how our energy conservation expertise helps customers cut operational costs and reduce their environmental impact,” said Kent Anson, vice president of global energy for Honeywell Building Solutions. “This type of program is an ideal way for organizations to achieve energy savings and upgrade their infrastructure without detracting from their primary focus.”

Honeywell International is a $33 billion diversified technology and manufacturing leader, serving customers worldwide with aerospace products and services; control technologies for buildings, homes and industry; automotive products; turbochargers; and specialty materials. Based in Morris Township, N.J., Honeywell's shares are traded on the New York, London and Chicago Stock Exchanges. It is one of the 30 stocks that make up the Dow Jones Industrial Average and is also a component of the Standard & Poor's 500 Index. For additional information, please visit www.honeywell.com. Honeywell Building Solutions is part of the Honeywell Automation and Control Solutions business group, a global leader in providing product and service solutions that improve efficiency and profitability, support regulatory compliance, and maintain safe, comfortable environments in homes, buildings and industry. For more information about Building Solutions, access www.honeywell.com/buildingsolutions.

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