Honeywell receives Department of Energy contract to reduce energy consumption
This contract builds on Honeywell's experience providing strategic, effective energy solutions for the federal government, the largest energy user in the United States.
Minneapolis – Honeywell has received an Indefinite Delivery Indefinite Quantity (IDIQ) Energy Savings Performance Contract (ESPC) from the Department of Energy. The contract allows Honeywell to implement up to $5 billion of energy-efficiency, renewable-energy and water-conservation projects at federally ownedbuildings and facilities, nationally and internationally, over the next 10 years.
Honeywell received one of 16 new IDIQ ESPCs. Using ESPCs, federal agencies can pay for facility improvements through the energy savings they generate. Honeywell obtains the necessary financing and guarantees the customer savings so the work does not require an upfront investment or effect operating budgets. As a result, government agencies are able to reduce costs, cut greenhouse gas emissions, and create more efficient and comfortable facilities without additional taxpayer funding.
The contract builds on Honeywell's nearly 30 years of experience providing strategic, effective energy solutions for the federal government, the largest energy user in the United States. This includes more than 150 ESPC projects at federal sites, which are expected to deliver $1.6 billion in guaranteed savings. These projects have also helped the DOE meet the aggressive energy and environmental goals outlined in Executive Order 13423, the Energy Policy Act of 2005, and the Energy Independence and Security Act of 2007.
Recent examples of these projects include:
Honeywell’s collaboration with the DOE to replace a 1950s vintage coal-powered steam plant at Savannah River Site (SRS) in South Carolina with a clean, renewable plant powered by waste-wood biomass. The project is expected to save about $1.5 million per year.
Luke Air Force Base in Glendale, AZ, saving an estimated $21.8 million in energy and operational costs. The work was funded through a $13.8-million ESPC and includes a 375- kilowatt solar installation that produces enough energy to power about 100 homes per year.
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