Honeywell and U.S. Army Turn Recycled Energy into $1.8 Million in Annual Savings at Fort Bragg; New Cooling, Heating and Power Generation System Represents the Latest in Energy Efficiency

Business Wire, Sept 7, 2005

MINNEAPOLIS -- Honeywell (NYSE:HON) today announced the completion of a prototype cooling, heating and power (CHP) generation system at Fort Bragg in Fayetteville, N.C., designed to improve energy infrastructure, reduce energy consumption and increase energy security.

Initiated by the Directorate of Public Works (DPW) at Fort Bragg and developed with the Department of Energy (DOE) through Oak Ridge National Laboratory, the new system uses energy recycling to achieve an estimated 70 percent overall energy efficiency -- a considerable improvement over the 35 to 40 percent efficiency typical with centrally generated electricity sources. The installation represents a significant advance in energy management and is projected to reduce Fort Bragg energy costs by $1.8 million per year.

The prototype is the latest phase in an energy partnership between Honeywell and the Fort Bragg DPW, which is responsible for almost 30 million square feet of facilities at the 84-year-old Army post. Formed under an Energy Savings Performance Contract (ESPC), the partnership has cut total energy costs at Fort Bragg by more than 25 percent over the last seven years. ESPCs allow the federal government to use private financing to upgrade buildings and make them more energy efficient. Contractors like Honeywell are paid from the cost savings and are required to guarantee that the government will save more money than it spends.

"This has been an extremely productive relationship," said Joe Puishys, president of Honeywell Building Solutions. "Together, the U.S. Army and Honeywell have saved more than $57 million at Fort Bragg to date. And over the entire course of the ESPC, Fort Bragg will be able to make $66 million in capital investments at no additional operating cost to the government and taxpayers."

"Our success shows what can be accomplished when government and service providers share a vision," says Gregory Bean, DPW director, Fort Bragg. "This type of partnership can achieve tremendous energy savings, reduce pollution and improve energy security."

The new, $11-million CHP system is an integrated system built around a five-megawatt gas turbine generator coupled with an innovative heat recovery steam generator and absorption chiller. Waste heat produced during combustion of natural gas fuel, which drives the turbine generator, is directed to either the heat recovery steam generator or absorption chiller. The steam generator uses waste heat to produce steam for heating and hot water, and the chiller converts the waste heat to chilled water used for air conditioning. The ultra-efficient design is the first of its kind.

Advanced control software developed by Honeywell optimizes individual component operation and system interaction, further reducing overall energy consumption and cost. The heat, hot water and cooling is supplied to barracks and other buildings in the area, resulting in better living and working conditions at significant cost savings. The upgrade also increases energy security. Onsite generation supports a major hospital facility and other critical base loads, reducing vulnerability to disruptions on the electric grid.

The Fort Bragg prototype is modular, which means that engineers assembled pre-defined components into packaged systems appropriate for applications from large building complexes to single building facilities. Modularity is expected to benefit the Army further by reducing capital requirements and installation costs associated with future projects.

The CHP system was developed by a Honeywell-led team, which included Broad Air Conditioning Co. Ltd., I.C. Thomasson Associates, Inc. and Chelsea Group, Ltd. Development was supported under a DOE contract administered through the Distributed Energy Program by Oak Ridge National Laboratory. Installation at Fort Bragg was supported by the Federal Energy Management Program Office -- which will gather and disseminate information about the new system throughout the federal buildings arena -- and Honeywell Energy Services, the contract energy partner at Fort Bragg.

Honeywell International is a $26 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, Chicago and Pacific 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.>