Market Overview

Honeywell And Tinker Air Force Base Launch Landmark Efficiency Project


- $80.6-million Retrofit Project Largest for U.S. Air Force

- Upgrades Help Tinker Meet 30 Percent Energy Reduction Goal, Drop Designation as Air Force's Most Energy-Intensive Base

- Improvements Help Create, Sustain Local Jobs

MINNEAPOLIS, Oct. 30, 2012 /PRNewswire/ -- Honeywell (NYSE: HON) today announced an $80.6-million energy efficiency project for the U.S. Air Force that will improve operations and cut utility costs at Tinker Air Force Base (AFB) near Oklahoma City, Okla. The project is the Air Force's largest domestic energy retrofit funded through guaranteed savings to date. And, combined with previous Honeywell-led improvements and other on-base initiatives, it will help Tinker meet the mandated 30 percent energy reduction goal defined by Presidential Executive Order 13514. It should also remove Tinker from atop the list of the most energy-intensive Air Force bases.


The upgrades are expected to save $6.4 million the first year after the work is complete and more than $170 million over 20 years, guaranteed by Honeywell through an energy savings performance contract. The Air Force plans to use the reduction in utility and operating expenses to pay for the project and ongoing maintenance, which Honeywell will also provide. As a result, Tinker AFB should not have to increase its budgets or request additional taxpayer dollars.

The improvements will have a significant impact on energy and water consumption as well, trimming the use of natural gas by almost 27 percent and fresh water by approximately 20 million gallons per year. Annual carbon dioxide emissions are also estimated to decrease by more than 60 million pounds, equivalent to removing 6,100 cars from the road.

In addition, the project will help create and sustain local jobs, with more than 500 Honeywell workers and supporting tradespeople expected on site during peak construction.

"The extraordinary efforts and teamwork between the AFSC Tinker Operational Contracting Branch and the 72nd Civil Engineer Directorate resulted in this seminal contract award, and will ultimately help Tinker gain energy efficiencies by significantly reducing our energy consumption in the winter time," said Colonel Steven J. Bleymaier, 72nd Air Base Wing and Installation Commander, Tinker Air Force Base. "This is exciting and a big milestone towards the many energy challenges and opportunities ahead, especially in the area of industrial processes, which account for 70 percent of Tinker's energy consumption."

Under the contract, Honeywell will oversee hundreds of energy- and water-saving upgrades, and will help maintain and repair the equipment it installs. The company's technicians will decommission three central steam plants and downsize a fourth, removing 56 buildings from the base's steam heat grid. The plants will be replaced by high-efficiency heating equipment at each building, which requires putting in more than four miles of natural gas piping, approximately 130 packaged hot-water and steam boilers, and a variety of infrared and direct-fired gas heaters.

Honeywell will operate the new boilers and manage the water treatment program for the equipment. And it will enhance 15 other facilities that will remain on the steam grid. Overall, the company will leverage its project management experience to help complete the work while minimizing the impact on day-to-day activity at Tinker AFB.

"This project will touch more than half the base, almost 9.5 million square feet of space," said Paul Orzeske, president of Honeywell Building Solutions. "To make the improvements while the base maintains its core operations requires close coordination and collaboration. Together, the Air Force and Honeywell are committed to cutting energy costs and environmental impact. And that provides benefits from the local community to the nation at large."

To measure and verify the energy savings, Honeywell will install an advanced metering system, which will include submeters from E-Mon, its subsidiary. Metering data will be tied into Honeywell Energy Manager and displayed on an energy dashboard, which will provide a granular view of how and where natural gas and electricity are being consumed. Tinker AFB will also use its existing Honeywell Enterprise Buildings Integrator (EBI) for overall control of heating, cooling and metering equipment.

Along with the technology, Honeywell will provide a Technical Resource Manager (TRM) for the life of the contract. The TRM will ensure project continuity, manage measurement and verification, monitor operations and maintenance, and act as the primary liaison for base personnel.

The construction phase of the project is expected to be complete in 2015.

Honeywell ( is a Fortune 100 diversified technology and manufacturing leader, serving customers worldwide with aerospace products and services; control technologies for buildings, homes and industry; turbochargers; and performance 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

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.

SOURCE Honeywell

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