Based on its recent analysis of the energy service company (ESCO) industry, Frost & Sullivan is pleased to recognize Honeywell with the 2008 North American Frost & Sullivan Award for Green Innovation of the Year. With its renewable energy profiling model, Honeywell is marking its path as a participant in innovation by helping its customers identify and implement renewable energy solutions that are not only environmentally sound, but also fiscally responsible.
“Honeywell is the first organization to introduce an all-encompassing renewable energy profiling model that allows it to isolate where the markets are for specific renewable energy technologies that provide strong economic drivers for its customers,” explains Frost & Sullivan consulting analyst Devin Castleton. “This provides an optimum advantage for customers who are not only motivated by environmental stewardship but also by economic value.”
The general concept behind the profiling model is the benchmarking of the variables of a renewable energy project for every location in North America, thus calculating which renewable technologies are most viable and provide the quickest payback. Honeywell can then offer a number of ways to finance the suggested projects, including performance contracts and power purchase agreements, in which Honeywell owns the asset and sells the power to the client.
The different variables Honeywell considers for its customers include renewable fuel availability, local electricity, gas prices, heating and cooling degree days, rebates and incentives, and deal structures. After examining all of these variables, Honeywell models them against a collected database of more than 55,000 potential customers—colleges and universities, hospitals, and federal and state governments, and other organizations—across North America.
The database gives Honeywell an accurate vision and analysis of any energy project, with any customer, at any location. Honeywell can provide not only guidance on which renewable technology a customer should use given a set of unique variables, but also a financial forecast derived from the intricate details the profiling model calculates.
Honeywell uses the data in the profiling model to create a renewable energy scorecard for each customer. This tool illustrates and evaluates the impact of several technologies and provides the customer with a full range look at the different types of renewable energy resources available, along with financial modeling parameters for each technology.
“The renewable energy scorecard is a data driven solution to a complex issue,” says Kent Anson, vice president of global energy for Honeywell Building Solutions. “It’s important that environmental stewardship makes good business sense too. Our profiling model and the scorecard take the guesswork out of the equation.”
The renewable energy scorecard is part of an ongoing effort at Honeywell to help its customers maximize the use of renewable technologies and cut energy costs. Over the past three years, the company has helped a variety of customers install biomass, solar, and geothermal technology.
These projects are expected to reduce annual carbon emissions by 21 million pounds and nitrous oxide emissions by 187,000 pounds, which is equivalent to removing more than 6,500 cars from the road. The switch to a renewable energy source also is expected to help these customers trim millions from their utility bills.
Honeywell’s commitment to further developing and utilizing green energy, and helping its customers apply it feasibly, demonstrates a set of best practices that have been recognized by Frost & Sullivan research. Frost & Sullivan presented Honeywell with the 2008 Green Innovation of the Year Award, and expects the company to further its role as an innovative market leader in the long term.
“Ultimately, the model does exactly what it was designed to do—identify renewable energy technologies that will contribute to the preservation of the environment and the reduction of energy resources that pollute the air and emit harmful greenhouse gases,” continues Castleton. “Honeywell’s model helps initiate projects that will have a lasting, positive impact on the next generation of residents.”
Each year, Frost & Sullivan presents this award to the company that has demonstrated unique product design and development initiatives, aligned with a sustainable and environmentally conscious objective within its industry sector. The award signifies the company’s identification of a unique and revolutionary solution with significant environmental benefits, while presenting tremendous market potential simultaneously. It also signifies that the company’s overall business strategy is sound and poised for success.
Frost & Sullivan Best Practices Awards recognize companies in a variety of regional and global markets for demonstrating outstanding achievement and superior performance in areas such as leadership, technological innovation, customer service, and strategic product development. Industry analysts compare market participants and measure performance through in-depth interviews, analysis, and extensive secondary research in order to identify best practices.