Honeywell on January 14 announced that it 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 owned buildings 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.
"This set of awards will ensure that federal agencies have access to powerful tools for alternative financing at a scale that is needed to meet our challenge of reducing energy intensity, increasing the use of renewable energy, and decreasing water consumption," said U.S. DOE Secretary Samuel W. Bodman.
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.
"We're helping the U.S. government and other organizations address the growing demand for innovative solutions that reduce energy consumption and increase efficiency," said Paul Orzeske, president of Honeywell Building Solutions. "Honeywell has already implemented numerous federal ESPC projects that comply with the cost, delivery and savings requirements outlined by the DOE. The new contract allows us to continue this work."
For example, Honeywell recently collaborated 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.
In addition, Luke Air Force Base in Glendale, Ariz., will save an estimated $21.8 million in energy and operational costs thanks to a Honeywell-led project. 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. The program has increased energy security and reliability, and improved comfort for the 8,000 troops and civilians at the base.
Along with tapping renewable resources, typical improvements include replacing and upgrading heating, ventilation and cooling (HVAC) equipment, installing centralized building automation systems, replacing outdated fixtures with energy-efficient lighting, tightening building envelopes through new windows and doors, and upgrading electrical systems.
As a global energy services leader, Honeywell has completed more than 5,000 energy-efficiency projects in facilities across the globe. It also has helped 5 million homeowners decrease their energy use through its work with utilities. These projects are expected to deliver more than $5 billion in energy and operational savings.