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Honeywell International Highlights Start Of Next Phase Of Infrastructure Modernization Project To 'Improve Energy Resiliency' At Kunsan Air Base; Says Project Worth $23M

Honeywell (NYSE:HON) announced today it is starting the next phase of an infrastructure modernization project to improve energy resiliency at Kunsan Air Base, a U.S. Air Force Base in Gunsan, South Korea.

05/10/2021 08:51

Honeywell (NYSE:HON) announced today it is starting the next phase of an infrastructure modernization project to improve energy resiliency at Kunsan Air Base, a U.S. Air Force Base in Gunsan, South Korea. The $23 million project will improve fuel supply reliability through the installation of natural gas service on the base. The installation will increase security by reducing the need for frequent fuel oil deliveries and will help improve the quality of life for airmen by providing more easily maintained heating systems.

$23 million project will improve fuel supply reliability through the installation of natural gas service on the base

The work is projected to reduce the base's energy consumption by 11 percent and 58,714 MMBtus annually. The energy and operational savings achieved by the new measures are guaranteed by Honeywell and will self-fund the project, eliminating the need for up front capital investment. When complete, the upgrades will also benefit the base's host nation, South Korea, by reducing annual emissions of carbon dioxide, nitrogen oxide and sulfur dioxide by 3,447 tons, the equivalent to removing 728 cars from the road. The project will also lessen the risk of groundwater and soil contamination from fuel oil.

Honeywell will modernize heating systems in 25 buildings on Kunsan Air Base, including the living quarters, by converting boilers from fuel oil to natural gas to create a better airman experience. A distribution network will be installed to deliver natural gas. Over time, the base plans to expand its use of natural gas to additional buildings.

"Kunsan Air Base is home to more than 2,900 U.S. airmen, soldiers, civilians, and South Korean nationals," said Major Mike Kelly. "We are pleased to increase their level of comfort through infrastructure updates, while simultaneously supporting greater sustainability goals. We have records dating back 17 years showing efforts to bring natural gas onto the installation. With this project, we can finally execute this goal to create a more secure fuel source on base, reducing the need to open gates and provide escorts for fuel oil deliveries."

"This modernization project will bring a number of benefits to Kunsan Air Base and its Host Nation," said Jose Simon, vice president and general manager of projects for Honeywell Building Technologies. "It will help improve airman quality of life, reduce security and reliability concerns associated with use of fuel oil, cut environmental impact and even decrease maintenance needs. With locally sourced and serviced equipment and materials, maintenance can be completed more quickly, allowing service personnel to focus their time and attention on their mission."

Other elements of the project will modernize and enhance building monitoring and control systems and increase cybersecurity. Building management will be centralized creating a single point of control that will enable real-time decision making and help operators quickly identify potential operational issues. This will also allow building operators to schedule equipment use throughout the day, which can increase efficiency and optimize demand.

Honeywell first began working with Kunsan Air Base in 2017 when it provided upgrades to LED lighting, installation of advanced building control systems, building envelope improvements and water efficiency measures. The current project is the next phase of a 25-year energy savings performance contract (ESPC) awarded to Honeywell in 2018 by Kunsan Air Base and the Air Force Civil Engineer Center and Defense Logistics Agency-Energy, with a total project value of $52 million.

Honeywell has successfully executed similar projects at a variety of other Department of Defense sites, including Tinker Air Force BaseLetterkenny Army DepotTobyhanna Army Depot and Rock Island Arsenal and other locations. Learn more about Honeywell's performance contracting for military facilities.

Honeywell recently committed to achieve carbon neutrality in its operations and facilities by 2035. This commitment builds on the company's track record of sharply reducing the greenhouse gas intensity of its operations and facilities as well as its decades-long history of innovation to help its customers meet their environmental and social goals. About half of Honeywell's new product introduction research and development investment is directed toward products that improve environmental and social outcomes for customers.