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3/16/2011 
Honeywell Awarded $213 Million Contract To Expand Energy Infrastructure At FDA Headquarters 

 

New Central Utility Plant and Building Upgrades Will Strengthen Energy Security and Reduce Utility Costs

 

MINNEAPOLIS, March 16, 2011 -- Honeywell (NYSE: HON) today announced a $213-million contract with the U.S. General Services Administration (GSA) to support the continued development of on-site utilities and energy infrastructure at the Food and Drug Administration (FDA) headquarters — the White Oak Federal Research Center in Silver Spring, Md. This is the fifth major energy-conservation contract for Honeywell at the White Oak campus.

 

The new 20-year agreement, among the largest awarded since the Department of Energy introduced the energy savings performance contract (ESPC) program in 1998, will be funded from the downstream energy and operational savings the work produces. Honeywell guarantees the savings so the project will not increase operating budgets or require additional taxpayer dollars.

 

In addition, compared to traditional construction techniques, the project is expected to save almost 48 million kilowatt-hours of electricity per year and reduce carbon dioxide emissions by 24,000 metric tons annually. According to figures from the U.S. Environmental Protection Agency, this is equivalent to removing 4,600 cars from the road.

 

"Through the agreement we're able to invest additional funds at the White Oak campus, creating the best environment for the FDA and surrounding community," said Shapour Ebadi, director, Office of Campus Development for GSA, which manages government assets including more than 9,600 buildings. "And we're guaranteed to recoup that investment, which demonstrates the benefits of this type of public-private cooperation."

 

The centerpiece of the project is the construction of a central utility plant that will meet the heating, cooling and energy requirements of a 1.2-million-square-foot expansion for the FDA's Center for Biological Evaluation and Research. Honeywell will integrate the new central plant with the existing plant at White Oak, optimizing the efficient delivery of utilities to the entire campus, and strengthening energy security by reducing reliance on the traditional electrical grid.

 

The new central plant will include two 7.5 megawatt (MW) dual-fuel turbine generators, a 4.5 MW natural gas turbine generator, two 2.25 MW diesel standby generators and a 5 MW steam turbine generator. It will also include three 2,500-ton chillers and a 2-million gallon thermal energy storage tank, which can act as a backup for the campus if municipal water services are temporarily lost. In total, the plant will be capable of producing up to 250,000 MW-hours of electricity each year — enough energy to power more than 23,000 homes.

 

By leveraging the plant's on-site generation capabilities, the government can avoid utility costs and generate revenue through incentives from PJM Interconnection, the independent system operator that controls the region's electrical systems, for running on self-generated power during hot summer days when increased demand strains the grid.

 

Under the agreement, Honeywell will also upgrade lighting systems in parking garages with high-efficiency light-emitting diode fixtures and occupancy sensors.

 

GSA expects to complete the new section of the White Oak campus in late 2013. Honeywell will provide ongoing operations and maintenance services when the research center and central plant are fully commissioned in 2014.

 

The current work will add to the benefits from four previous projects:

 

      • In 2002, GSA selected Honeywell to construct the current central plant and install photovoltaic solar panels to provide three buildings with a renewable energy source. The completed project won a Federal Energy and Water Management Award from the Federal Energy Management Program (FEMP).
      • Honeywell was awarded an ESPC in 2005 to install a turbine generator, chiller and additional solar panels, work that is expected to save the government more than $70 million during the 23-year term of the contract.
      • In 2006, Honeywell received a contract to expand the capacity of the central plant, helping the government cut energy-related costs by more than $5 million per year.
      • GSA awarded Honeywell a contract in 2009 to install an additional turbine generator to meet the campus' peak electric demand.


"Honeywell has been a part of White Oak since its groundbreaking, and we see the continued relationship as a testament to our ability to drive cost savings, and make the campus more efficient and secure," said Paul Orzeske, president of Honeywell Building Solutions. "The savings from the latest contract — along with the millions the prior work is generating each year — will allow the FDA to maintain focus on its research and regulatory missions."

 

Honeywell International (www.honeywell.com) is a Fortune 100 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. For more news and information on Honeywell, please visit www.honeywellnow.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: www.honeywell.com/buildingsolutions.

 

This release contains certain statements that may be deemed "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical fact, that address activities, events or developments that we or our management intends, expects, projects, believes or anticipates will or may occur in the future are forward-looking statements. Such statements are based upon certain assumptions and assessments made by our management in light of their experience and their perception of historical trends, current economic and industry conditions, expected future developments and other factors they believe to be appropriate. The forward-looking statements included in this release are also subject to a number of material risks and uncertainties, including but not limited to economic, competitive, governmental, and technological factors affecting our operations, markets, products, services and prices. Such forward-looking statements are not guarantees of future performance, and actual results, developments and business decisions may differ from those envisaged by such forward-looking statements.

 

Media Contact:
Aaron Parker
+1-763-954-4257
aaron.parker@honeywell.com

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