Honeywell Forms Smart Grid Solutions Business To Address Growing Energy Demand

MINNEAPOLIS, June 11, 2012 /PRNewswire/ -- Honeywell (NYSE: HON) today announced the formation of Smart Grid Solutions, a global enterprise that centralizes the company's existing smart grid resources and expertise to respond to the growing needs of both energy providers and users.

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Part of Honeywell's Building Solutions business unit, Smart Grid Solutions will bring innovative offerings to market faster, and deliver end-to-end programs that connect utilities and their customers to solve a variety of energy challenges, such as relieving stress and congestion on aging electrical infrastructure, leveraging intermittent renewable resources, and better managing the increased demand for energy, which is expected to grow 40 percent by 2035.

The creation of Smart Grid Solutions is a strategic reflection of the anticipated rise in worldwide energy consumption and the corresponding need for demand-side-management services. According to a recent report from Pike Research, revenue for demand response services in particular will grow from nearly $1.3 billion last year to $6.1 billion by 2016, with load-curtailment services representing nearly two-thirds of the total opportunity.

"Honeywell has a long history helping balance supply and demand through turnkey programs that provide benefits for utilities and end users," said Jeremy Eaton, vice president and general manager of Honeywell Smart Grid Solutions. "However, the scope and applicability of our work is expanding. Countries across the world are making significant investments to build a smarter, more robust grid. And we have the technology, services and relationships to help those investments pay dividends."

Honeywell's decades-long experience designing and implementing demand response and energy efficiency programs for utilities will serve as the foundation for Smart Grid Solutions. The team will draw from these capabilities as it works to address global energy concerns.

China, for example, is expected to spend RMB$1.5 trillion on its energy infrastructure during the 12th Five-Year Guideline period ending in 2015, with the long-term goal of having a dynamic smart grid throughout the country by 2020.

Honeywell is currently working with the Tianjin Economic-Technological Development Area (TEDA) to implement China's first smart grid demand response project. As part of the project, Honeywell is installing its automated demand response (Auto DR) technology at select buildings within Tianjin, including government, commercial and industrial facilities. This will allow TEDA and network operator State Grid Corp. of China to automatically adjust energy use to reduce demand on the electrical grid, helping avoid potential brownouts and blackouts. Similar projects are underway in Australia, India, United Kingdom and United States.

Honeywell has also assisted utilities in gaining combined control of more than 1 gigawatt of peak electrical use through its residential demand response efforts — equivalent to the generation capacity of approximately 20 gas-fired peaking plants. Honeywell UtilityPRO is the fastest-selling thermostat for utility-sponsored demand response programs, having been selected by more than 20 power providers and installed in nearly 620,000 homes since 2008. The company recently added to its utility-focused residential portfolio by announcing plans for a cloud-connected thermostat with energy-analytics-expert Opower that will help utilities boost their energy efficiency programs and drive deeper saving in the home.

"The grid won't be smart until it allows utilities and users to work together to reduce consumption and boost stability," said Paul Orzeske, president of Honeywell Building Solutions. "Honeywell is providing the applications and services that will make energy infrastructure smarter and enable it to deliver benefits from the power plant to the consumer."

Honeywell has a legacy of working with utilities and their customers, giving it a unique perspective on how to quickly realize the benefits of the evolving grid. With controls in more than 150 million homes, 10 million buildings and thousands of industrial sites, and experience managing demand response and energy efficiency programs for more than 100 utilities, Honeywell has the offerings and experience to empower smart energy users.

For more information:

• Honeywell Smart Grid on Twitter
• Honeywell Smart Grid website

Honeywell (www.honeywell.com) 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 www.honeywellnow.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: www.honeywell.com/buildingsolutions.

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