Honeywell announced that the company’s smart grid project with Custom Building Products won the “Energy Project of the Year” award from the Southern California Chapter of the Association of Energy Engineers (AEE). The Honeywell project provides Custom Building Products with precise control over how its Bell, Calif., manufacturing facility uses energy, enabling it to automatically respond to changing peak electricity prices and trim utility bills.

The award recognizes the project for its high level of substantiated savings, which will enable the work to pay for itself within an estimated five months. Custom Building Products, a manufacturer of supplies for the construction industry, offset the $80,000 total project cost with rebates from Southern California Edison (SCE) and support from a Smart Grid Investment Grant Honeywell received from the Department of Energy in late 2009. Those funds lowered the out-of-pocket expenses to less than $3,000. And Custom Building Products expects to realize $6,000 in annual energy savings due to the upgrades and the resulting enhanced control.

For the project, Custom Building Products enrolled its 142,000-square-foot building in an automated demand response program, managed by Honeywell, to control how facility equipment responds to SCE’s dynamic pricing structure. The structure bases electricity rates for commercial and industrial customers on consumption levels and generation costs, meaning prices rise significantly during periods of peak demand. 

Read more about Honeywell’s smart grid-focused work.

Porter Airlines has successfully conducted the first biofuel-powered revenue flight in Canada using aviation biofuel made by Honeywell’s UOP.  The Green Jet Fuel, which was made from the plants camelina and brassica carinata and then blended in a 50/50 ratio with petroleum-based fuel, powered one engine of the Bombardier Q400 turboprop aircraft as it flew from its base at Billy Bishop Toronto City Airport to Ottawa. 

To date, Honeywell’s Green Jet Fuel has been used flawlessly in almost 30 commercial and military flights.  The fuel was approved for use in commercial flight on July 1, 2011, and, since that time, Honeywell’s biofuel has been used on a number of commercial, passenger-bearing flights including an Aeromexico weekly route from Mexico City to Costa Rica, and a United flight from Houston, Texas to Chicago, Ill.  The fuel meets all specifications for flight and has shown improved energy efficiency, allowing aircraft to fly further on less fuel. 

Learn more about Honeywell Green Jet Fuel

Honeywell has successfully reduced greenhouse gas emissions by more than 30% and increased energy efficiency by more than 20% compared to its 2004 benchmark year.  This effort was part of a five-year plan focused on internal operational improvements across the company.  Honeywell has also reduced its hazardous waste generated per dollar of revenue by more than 15% between 2007 and 2012.

Going forward, Honeywell will continue to establish annual goals for further greenhouse gas emissions reductions and energy efficiency enhancements and monitor its progress.  Additionally, Honeywell has developed a global inventory of water usage in its manufacturing operations and is developing conservation targets at sites in areas that are experiencing “water stress” as defined by the World Resources Institute. Implementation of conservation targets will begin in 2013.

Honeywell’s commitment to sustainability extends to its customers through the continued development of products that help customers address key challenges, including energy efficiency and clean energy generation.  Today, nearly 50 percent of Honeywell’s product portfolio is linked to energy efficiency. The United States could reduce its energy consumption 20 to 25 percent by immediately and comprehensively adopting existing Honeywell technologies.

Learn more about Honeywell's commitment to sustainability.

Honeywell introduced its new Attune^™ Advisory Services, a suite of professional services that combines cloud-based tools and analytics with a global network of operations centers, and energy and facility experts to provide enhancements that can reduce utility bills and operating expenses up to 20 percent.  

Attune Advisory Services will help building managers and owners, wherever they are on the energy- and operational-efficiency spectrum, providing technology and support to gain baseline awareness of building performance, make improvements to reduce energy and operations costs, and define an ongoing strategy to manage and optimize a facility.

“We’ve gone to great lengths to reduce energy costs while keeping occupants safe and comfortable,” said Tom Damsell, technical services supervisor for Brookfield Office Properties, which owns and manages One Liberty Plaza in lower Manhattan. “Working with Honeywell, we’ve already cut annual electricity use at One Liberty Plaza by approximately 7 percent. Now, we’re looking for the support to help uncover the next level of savings — to find the improvements that are less obvious but highly impactful.”

To learn more about Attune, visit the website or watch the overview video.

As part of its nation-wide Dream Tour, the Boeing-787 Dreamliner arrived at Phoenix’s Sky Harbor Airport on Friday, March 9, giving Honeywell Aerospace workers an opportunity to see their innovative solutions at work.  

The aircraft is outfitted with several Honeywell technologies designed to increase reliability and improve equipment performance, including highly integrated flight controls for improved efficiency in flight, and a crew information and maintenance system that monitors and communicates in real time the performance and condition of the airplane’s systems for improved safety and reduced maintenance time.  The 787 also includes a Honeywell navigation package comprised of communications, flight management, inertial reference, and air data systems.

For almost a decade, Honeywell and Fort Bragg, one of the largest military installations in the world, and home to more than 40,000 U.S. soldiers and their families, have worked to reduce campus-wide energy use and mitigate operating costs. In February, the U.S. Environmental Protection Agency (EPA) recognized the organizations for their efforts with the Energy Star Combined Heat and Power (CHP) award. Fort Bragg was one of two Department of Defense installations to receive this honor.

The Fayetteville, N.C plant is powered by a combustion turbine-generator that produces up to 5 megawatts of electricity. Waste heat from the turbine is recovered to create nearly 27,000 pounds of steam per hour, which is then used to meet the post’s heating and hot-water needs.  This has helped to significantly increase energy efficiency at Fort Bragg and reduced reliance on the local utility grid, consuming 18 percent less fuel than a conventional system and an estimated 12,300 metric tons of carbon dioxide emissions per year, which is equivalent to removing 2,400 cars from the road, according to figures from the EPA. It has also reduced the post’s energy costs by an estimated $1 million annually.

The company reported full-year 2011 results including:
• 2011 sales of $36.5 billion, up approximately 13% over 2010
   – 8% organic sales growth, again reflecting strong end markets, successful new product launches, and continued expansion in high growth regions
• 2011 proforma earnings (excluding the impact of pension mark-to-market adjustments)  of $4.05 per share, up 35% over $3.00 in 2010; Reported EPS of $2.61 in 2011 versus $2.59 in the prior year
   – Pension mark-to-market adjustment of $1.44 per share calculated using 791.6 million weighted average shares outstanding assuming dilution
• 2011 cash flow from operations of $2.8 billion, includes $1.7 billion cash pension contribution in the year
   – 2011 free cash flow of approximately $3.7 billion, prior to $1.7 billion cash pension contribution

“Honeywell had a terrific 2011,” said Honeywell Chairman and CEO Dave Cote. “We executed across the portfolio with record organic sales growth and segment margins. Our 2011 performance reflects the operational and financial disciplines that underpin the transformation that has taken place at the company over the last 10 years. We deployed the Honeywell 5 Initiatives – Growth, Productivity, Cash, People, and our Enablers, and created a common One Honeywell culture committed to continuous improvement. As a result, we built a better set of businesses with Great Positions in Good Industries, a terrific performance track record, a great leadership team with a truly global focus, a very full pipeline of new products and technologies, and our key process initiatives that are gaining momentum. We’ve come a long way, and we feel even better about our future.”

“While we expect a more challenging macro environment ahead in 2012, primarily driven by softness in Europe impacting the short-cycle businesses, we’re confident that Honeywell is well positioned to continue to outperform,” continued Cote.  “Our long-cycle businesses are accelerating, with Commercial Aerospace OE, UOP, Building Solutions & Distribution, and Process Solutions all having substantial backlog, in total just under $16 billion. While we expect growth to moderate in the first half of 2012, we’re confident that we can drive strong sales conversion leading to higher segment margins over the course of the year.  The investments we’ve made, coupled with our execution track record and disciplined playbook, will be key to our continued outperformance in 2012 and beyond.”

For more information, read the press release or listen to a replay of the Investor Conference Call.

Aldous Wong, HBS Vice President & General Manager, North Asia, shakes hands with Ai Yamin, Deputy Director of TEDA at the signing ceremony.

Honeywell signed an agreement with the Tianjin Economic-Technological Development Area (TEDA) to implement China’s first Smart Grid Demand Response project.  State Grid Electric Power Research Institute selected Honeywell to develop the project in February. The signing also represents the official launch of the Demand Response System Pilot jointly sponsored by the Chinese and United States governments through the U.S.-China Energy Cooperation Program (ECP), which aims to develop a nationwide set of smart grid industry standards and regulations in China.

Under the Honeywell-TEDA agreement, Honeywell will conduct a demonstration project using its automated demand response (Auto DR) technology at select facilities within the TEDA development area, including office buildings, government and commercial facilities, and industrial plants.

As the world’s largest energy user, China seeks to develop a “smarter” electrical grid to better manage the country’s growing demand for energy and improve the reliability and efficiency of the nation’s utility infrastructure.  Honeywell’s smart grid technology and expertise connects the utility and its customers so they can automatically adjust energy consumption to reduce demands on the energy grid.

For more information, read the press release.

• 3Q11 sales were up 14% to $9.3 billion versus $8.1 billion in 3Q10
    – 8% organic growth reflects continued strength in end markets
• 3Q11 earnings of $1.10 per share, an increase of 45% over $0.76 in 3Q10
    – Segment profit growth and margin expansion in all segments
    – Includes $0.04 benefit from lower tax rate; tax rate favorability expected to be offset in 4Q11
    – Includes $0.33 repositioning and other actions funded by the gain on sale of the divested Consumer Products Group (CPG) business ($0.23, discontinued operations) and OPEB curtailment ($0.10) in the quarter, which will better position the company for 2012 and beyond
• 3Q11 cash flow from operations of $0.7 billion, includes $400 million cash pension contribution
    – 3Q11 free cash flow (cash flow from operations less capital expenditures) of $884 million, excludes $400 million cash pension contribution

The company is raising its 2011 sales and EPS outlook and now expects:
• 2011 sales of $36.5 – 36.7 billion, up approximately 13% over 2010
    – Excludes the divested CPG business, treated as discontinued operations
• 2011 proforma earnings per share of $4.00 – 4.05, up 33 – 35% over 2010
    – Mark-to-market pension adjustments in both periods excluded
• 2011 free cash flow guidance of approximately $3.5 billion, prior to any cash pension contribution

“Honeywell’s strong third quarter results are a continuation of the momentum we’ve seen across our businesses in 2011,” said Honeywell Chairman and CEO Dave Cote.  “Our third quarter sales growth reflects a particularly robust Commercial Aerospace upcycle, with growth in both original equipment and aftermarket sales. It also highlights the company’s extensive innovation pipeline and increasing presence in high growth regions in all our businesses. Our long-cycle backlog continues at near record levels, with sustained strong orders growth particularly at UOP, ACS Solutions, and Commercial Aerospace. Further, our short-cycle businesses, such as Turbo Technologies, Advanced Materials, and ACS Products are performing well overall.” 

“Despite signals of slower economic growth, we expect positive organic growth to continue the rest of this year and into 2012,” concluded Cote. “The repositioning actions we took in the third quarter, funded by non-operational gains, better position our businesses for 2012 and beyond. These repositioning tailwinds, combined with our great positions in good industries, execution track record, and disciplined playbook, will be keys to our continued outperformance.”

For more information, read the press release, watch Chairman and CEO Dave Cote discuss the company’s financial performance on CNBC, or listen to a replay of the Investor Conference Call.

Eastern Illinois University (EIU) and Honeywell unveiled the school’s Renewable Energy Center (REC), one of the largest university biomass installations in the country, as part of a grand opening ceremony held on campus for students, faculty and the broader Charleston, Ill., community.

The REC is a 19,000-square-foot steam plant that will provide heat for buildings and classrooms across the university grounds. It is driven by two large biomass gasifiers — the first application of this technology in Illinois and the surrounding region — that use wood chips from forest residue for fuel. By switching to a renewable energy source, EIU will reduce annual carbon dioxide emissions by an estimated 20,000 metric tons, which is equivalent to removing more than 3,600 cars from the road, according to figures from the U.S. Environmental Protection Agency.

The new plant is one piece of a comprehensive energy- and environmental-conservation program that also includes a variety of upgrades to other university facilities and infrastructure. The product of close collaboration between EIU and Honeywell, the program is expected to cut energy use on campus in half and carbon dioxide emissions by 80 percent. All the improvements will more than pay for the work through a projected $140 million in energy savings over the next two decades — savings that are guaranteed through a performance contract with Honeywell.

For more information, watch a video about the project or read the press release.