Performance Contract Enables the University to Finance Upgrades through
$1.5 Million in Guaranteed Savings on Annual Energy Expenses
ST. JOHN'S, NL, March 13 /CNW/ - Officials from Honeywell (NYSE: HON) and
Memorial University of Newfoundland today signed a contract for a
$13.2-million energy savings and facility renewal project. The provincial
cabinet provided their approval for the financing arrangement, as required by
law. The project will enable Memorial University, Atlantic Canada's largest
university, to offset the impact of rising energy costs while reducing
maintenance costs and improving comfort for its more than 20,000 students,
faculty and staff.
The work will be focused on eight buildings on the university's 250-acre
campus in St. John's. It will include infrastructure upgrades, such as new
lighting and heating, ventilation and cooling (HVAC) equipment; improvements
to mechanical systems; and upgrades to building automation systems to optimize
energy management. Wherever practicable, energy-efficient technologies will
replace older, less-efficient systems - reducing electricity, fuel consumption
and related costs.
The project will also have significant environmental benefits. For
example, it is expected to decrease carbon dioxide emissions by an estimated
15 percent or 7,300 tonnes per year. This is equivalent to removing 1,150 cars
from the road, using Environment Canada indices.
"We are taking action to reduce energy consumption and thereby achieve
savings that can eventually be directed towards educational and research
purposes," said Dr. Axel Meisen, president of Memorial University. "By
reducing our energy demand, we are also helping the environment."
Memorial University will finance the work from the energy and operational
savings the improvements will generate. Honeywell guarantees those savings -
projected to be approximately $1.5 million per year over the next 14 years -
under a performance contract with the university. This ensures the project
will be self-funded and will not place a burden on the university's budgets.
"Colleges and universities across the country are caught in a vicious
operating cost squeeze, caused in large part by soaring energy prices," said
Joe Puishys, president of Honeywell Building Solutions. "Energy performance
contracts help them cut energy use sharply, and improve the comfort and
efficiency of their buildings, all without having to tap current budgets."
Honeywell began its involvement in the project by identifying areas where
upgrades would have a significant effect on energy efficiency and building
improvements. Once the engineering audit and report was complete, Honeywell
and Memorial University jointly planned the project, choosing the measures
with the greatest impact.
Specifically, Honeywell will install new lighting that will decrease
energy consumption while providing better illumination. The company also will
implement new lighting control strategies. In addition, an existing chiller
dating back to the 1970s will be replaced with a high-efficiency,
environmentally friendly chiller. And Honeywell experts will oversee
modifications to the fume hood exhaust system in the Department of Chemistry
that will help improve the removal of noxious gases from laboratories. A
variety of other HVAC, humidification and mechanical equipment will be
upgraded as well.
The project will commence this month and Honeywell expects to complete
the work over the next two years.
About Memorial University of Newfoundland
Memorial University of Newfoundland is the only university in the
province of Newfoundland and Labrador and the largest university in Atlantic
Canada. With its largest campus in St. John's, the Marine Institute in
St. John's and the Sir Wilfred Grenfell College campus in Corner Brook,
Memorial has a student population of approximately 18,000, a faculty
complement of 900 and 1,500 staff in six faculties (Arts, Science, Education,
Medicine, Engineering and Applied Science, and Business Administration) and
seven schools (Graduate Studies, Nursing, Physical Education, Recreation and
Athletics; Social Work, Continuing Education, Music and Pharmacy).
Programs are also offered as on an international campus in Harlow,
England. As well, there are a number of special divisions offering support to
the university's primary mandates of research and education, and providing
services to urban and rural communities in the Province of Newfoundland and
Labrador, as well as nationally and internationally.
Honeywell International is a $31 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 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
This release contains "forward-looking statements" within the meaning of
Section 21E of the Securities Exchange Act of 1934. All statements, other than
statements of fact, that address activities, events or developments that we or
our management intend, expect, project, believe or anticipate will or may
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For further information:
For further information: Ivan Muzychka, Memorial University, (709)
737-8665, email@example.com; Aaron Parker, Honeywell, (952) 656-1721,