MINNEAPOLIS, MN /PRNewswire-FirstCall/ -- Honeywell (NYSE:HON) announced that it received a contract from the U.S. Army Corps of Engineers to help the Department of Defense and other agencies increase energy efficiency, leverage renewable energy and save water. The work will be performed under the federal Energy Savings Performance Contracts (ESPCs) program and builds on the Department of Energy contract Honeywell recently secured to implement up to $5 billion of similar projects in government facilities across the globe.
Using ESPCs, federal agencies can pay for facility improvements through the energy and operating savings the upgrades produce over a specified timeframe, which is up to 25 years under the Army Corps of Engineers program. Honeywell obtains the necessary financing and guarantees the savings so the work does not require an upfront investment or impact operating budgets. As a result, the government is able to reduce costs, cut greenhouse gas emissions, and create more efficient and comfortable facilities without additional taxpayer funding.
"Federal agencies are working to meet the aggressive energy and environmental goals outlined by the president and Congress, and Honeywell has a long history of supporting these efforts," said Paul Orzeske, president of Honeywell Building Solutions. "We help find the mix of building retrofits, renewable energy and services that will not only meet these targets, but deliver the greatest return on investment as well."
Honeywell was one of 16 energy services companies to receive a contract for this new program, which could involve as much as $900 million in energy efficiency, renewable energy and water conservation projects over the next 10 years.
Honeywell has provided strategic energy solutions to the federal government—the largest energy user in the United States—for nearly 30 years. It has completed more than 90 ESPC projects for the DOD, including recent improvements at Fort Jackson in Columbia, S.C., which helped the post upgrade its infrastructure and support the Army's commitment to Leadership in Energy and Environmental Design (LEED). Fort Jackson will save an estimated $2 million in annual utility and operating costs as a result of the work, and reduce its energy consumption by more than 10 percent.
Honeywell has also implemented energy conservation measures for the Air Force and Navy. Combined, the company's DOD work will provide around $540 million in guaranteed savings.
Typical improvements include replacing and upgrading heating, ventilation and cooling (HVAC) equipment, installing centralized building automation systems, replacing outdated fixtures with energy-efficient lighting, tightening building envelopes through new windows and doors, and upgrading electrical systems. Renewable energy technology like solar panels and biomass boilers is frequently employed as well.
As a global energy services leader, Honeywell has completed more than 5,000 energy-efficiency projects in facilities across the globe. It also has helped 5 million homeowners decrease their energy use through its work with utilities. These projects are expected to deliver more than $5 billion in energy and operational savings.
Nearly 50 percent of Honeywell's product portfolio company-wide is linked to energy efficiency. The company estimates the global economy could operate on 10 to 25 percent less energy by using today's existing Honeywell technologies.
Honeywell International is a $37 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.
About Honeywell Building Solutions
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.