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Posted On: 09/14/2005

New service from Honeywell helps cut energy costs

Honeywell (NYSE: HON) has introduced Honeywell MiniRetrofit Service, a new facility-optimization program that allows building managers to tackle energy-savings projects without an upfront capital investment. Through a multi-year service agreement, the MiniRetrofit program helps businesses replace aging infrastructure with high-efficiency equipment and systems, thereby decreasing energy use, increasing equipment reliability and improving comfort. The projects, such as lighting, HVAC and insulation upgrades, have little or no impact on the operating budget because they are funded by the energy and operational savings they generate.
 
Part of Honeywell's energy portfolio, MiniRetrofit projects are similar to energy savings performance contracts (ESPCs), but have a more limited size and scope. As a result, they offer a rapid financial payback - from six months to six years — and are ideal for the commercial and industrial sector. The payback on a comprehensive ESPC is 10 or more years, typically.
 
According to Frost & Sullivan, a growth consulting company that tracks energy management markets, a major driver for a product or service in the energy management space is a timely return on investment. "Many commercial or industrial end users face a considerable up-front investment when they look at upgrading their facility and equipment in order to gain long-term energy savings," said Roberta Gamble, research manager for Energy Markets at Frost & Sullivan. "An offering that allows a company to easily finance or otherwise mitigate those initial costs and also see a quick return on that investment would help make the upgrades more feasible."
 
To design MiniRetrofit programs that meet each customer's unique needs, Honeywell conducts an engineering site analysis that identifies the facility-optimization improvements that will fund the project. Building upgrades and energy conservation measures that offer opportunities for quick payback include: 

• Efficient lighting systems
• Energy-efficient motors
• Variable frequency drives
• Steam systems upgrades
• Control systems
• Power factor correction
• Compressor upgrades
• Boiler and chiller upgrades

By replacing aging infrastructure, these projects not only increase facility efficiency, they enable customers to better forecast future expenses, and avoid untimely and unpleasant surprises related to equipment breakdowns.
 
This is especially important for high-traffic commercial facilities like casinos, hotels and convention centers that have to maintain consistent comfort for occupants. It is equally important for industrial customers, such as paper mills or consumer electronic manufacturers, where equipment runtime is constant and reliability is critical.
 
"Energy is one of the largest operational costs for any business," said Laura Schultz, vice president of Global Marketing for Honeywell Building Solutions. "MiniRetrofit Service helps take the guesswork out of managing these costs, while giving customers a way to generate savings that fund needed building improvements."