Honeywell and Arnot Ogden Medical Center Turn Wood Chips Into Energy Savings
More than 60 Percent of Energy Use to Shift to Renewable Source, Program to Reduce Emissions, Stabilize Operating Costs
MINNEAPOLIS, Dec. 5 -- Honeywell (NYSE:HON) today announced it has been awarded a $4-million contract with Arnot Ogden Medical Center in Elmira, N.Y., to implement a renewable energy technology and infrastructure upgrade program to help the medical center cut greenhouse gas emissions and insulate its operating budget from fluctuations in energy costs. The performance contract, guaranteed to save Arnot Ogden more than $535,000 in annual energy and operational costs, includes the installation of a wood chip-fired boiler that will handle most of the heating load for the Main Medical Center. As a result, nearly 60 percent of the energy consumed by the building will come from a renewable energy source.
The new boiler alone is expected to reduce carbon dioxide emissions by more than 9.5 million pounds per year. According to figures from the U.S. Environmental Protection Agency, this is equivalent to removing 970 cars from the road.
"Using wood chips from a local supplier allows us to lock-in costs in a volatile energy environment," said Wes Blauvelt, vice president of Planning and Marketing for Arnot Ogden Medical Center, a 256-bed community hospital specializing in diagnostic, ambulatory and acute care services. "This performance contract gives us one of the most economically feasible ways to implement a green solution to address our energy needs."
Honeywell and Arnot Ogden have had a successful relationship for more that 10 years, and have implemented a variety of other energy conservation measures. The savings that result from the latest upgrades, which are guaranteed by Honeywell for 10 years, are expected to pay for the work. Therefore, the improvements should not affect the medical center's operating budget.
The focal point of the program is the biomass boiler, which will be fueled each year by more than 7,000 tons of wood chips from a local mill. This happens through a process called biomass gasification where the wood chips are heated in an airtight, oxygen-deprived chamber until they break down to create a synthetic gas that burns similar to natural gas. The gas is combusted to fire the boiler, giving the medical center a carbon-neutral solution for heating its facilities.
In addition, Honeywell will seal and weather strip buildings to reduce the loss of hot and cool air; install high-efficiency motors on building system equipment; and upgrade steam traps to increase the overall efficiency of the medical center's heating, ventilation and air-conditioning (HVAC) equipment. Arnot Ogden also will participate in the load curtailment program from the New York Independent System Operator (NYISO), which manages the state's electricity transmission grid. The program allows the medical center to create additional savings by switching to backup generators at specific times of the year and reducing the load on the grid.
Honeywell will provide ongoing maintenance, and performance measurement and verification contract as part of the contract. The company expects to complete the boiler installation and other upgrades by February 2008. "Using renewable energy has an obvious environmental benefit, but it can have a positive impact on the bottom line as well," said Kent Anson, vice president of Global Energy for Honeywell Building Solutions. "Working with Arnot Ogden, we identified the green technology that would meet their energy needs, provide the greatest return on investment and deliver guaranteed savings."
Honeywell International is a $34 billion diversified technology and manufacturing leader, serving customers worldwide with aerospace products and services; control technologies for buildings, homes and industry; automotive products; turbochargers; and specialty materials. Based in Morris Township, N.J., Honeywell's shares are traded on the New York, London and Chicago Stock Exchanges. It is one of the 30 stocks that make up the Dow Jones Industrial Average and is also a component of the Standard & Poor's 500 Index. For additional information, please visit http://www.honeywell.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 about Building Solutions, access http://www.honeywell.com/buildingsolutions.
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