Honeywell To Increase Production Of Low-Global-Warming Materials, Reduce Hydrofluorocarbon (HFC) Production By Nearly Half Over Five Years

Honeywell News Release:

9/16/2014

Honeywell To Increase Production Of Low-Global-Warming Materials, Reduce Hydrofluorocarbon (HFC) Production By Nearly Half Over Five Years

Expanded capacity to produce new low-global-warming materials driving reductions, with support from proposed regulations; announcement made at White House event MORRIS TOWNSHIP, N.J., Sept. 16, 2014 – Honeywell (NYSE: HON) announced today that it will increase production of its low-global-warming-potential (GWP) refrigerants, insulation materials, aerosols and solvents, and, prior to 2020, will drive a 50 percent reduction in its annual production of high-GWP hydrofluorocarbons (HFCs) on a CO2 equivalent basis. The company projects that use of its low-GWP Solstice® HFC replacements will eliminate more than 350 million metric tons in CO2 equivalents by 2025, equivalent to removing 70 million cars from the road for one year. The company and its suppliers anticipate spending nearly $900 million in R&D and new capacity, mainly in the U.S., in the coming years to produce next-generation refrigerants, insulation materials, aerosols and solvents, which have global warming potentials equal to or better than carbon dioxide and at least 99 percent lower than most technologies used today. Honeywell has invested nearly $350 million to date and today announced that it and its suppliers plan to spend approximately $550 million more to support the new products. Honeywell has already reduced its CO2-equivalent fluorocarbon production by 30 percent since 2007 by converting legacy production assets to low-global-warming technologies. The company plans to reduce CO2-equivalent production of HFCs by an additional 50 percent over the next five years as customers throughout the world adopt new LGWP products to reduce greenhouse gas emissions, increase energy efficiency and meet proposed tighter U.S. Environmental Protection Agency (EPA) regulations. Honeywell made the announcement at a White House event where John Podesta, Counselor to U.S. President Barack Obama; Gina McCarthy, U.S. Environmental Protection Agency administrator; Dr. Ernest Moniz, U.S. Secretary of Energy; and Todd Stern, U.S. Special Envoy for Climate Change announced the administration’s support for reductions in HFCs. As part of the Climate Action Plan President Obama launched last year, the Administration is partnering with industry leaders like Honeywell that are investing in the next generation of safer HFC alternatives and incorporating climate-friendly technologies into their products and services. “Regulators around the world are taking steps to address climate change, and Honeywell is an industry leader in this area with technologies that significantly reduce greenhouse gas emissions and an array of technologies that promote energy efficiency and cleaner energy production,” said Darius Adamczyk, president and chief executive officer of Honeywell Performance Materials and Technologies. Honeywell has developed a range of hydrofluoro-olefin (HFO) products with extremely low global warming potentials – either equal to or less than carbon dioxide – that are safe, available today and capable of making a significant positive environmental impact. These products are alternatives to HFCs that are energy-efficient, safe to use, non-ozone-depleting and have a minimal global warming profile. Honeywell’s Solstice® line of HFOs include Solstice yf for automobile air conditioning, Solstice Propellant for aerosol applications, Solstice Liquid Blowing Agent and Gas Blowing Agent for foam applications and Solstice Performance Fluid for use as an industrial solvent. Each of these products has been approved under the EPA’s Significant New Alternatives Policy (SNAP) program. Solstice yf is already being used in more than 1 million vehicles, a number that is expected to double this year. Widespread adoption of Solstice yf would yield the equivalent environmental benefit of removing 30 million automobiles from the roads worldwide. In addition to its industry-leading line of low-global-warming-potential HFOs, Honeywell’s Fluorine Products business manufactures and supplies non-ozone-depleting refrigerants used by top air-conditioning and refrigeration makers worldwide, blowing agents for energy-efficient foam insulation, and hydrofluoric acid and precursors for nuclear fuel. Nearly 50 percent of Honeywell’s portfolio is dedicated to energy-efficient products and services. In addition to developing and producing low-global-warming materials, Honeywell manufactures programmable thermostats and energy management systems, turbochargers, green fuels, industrial controls and lighter aircraft components. The use of Honeywell technologies could reduce energy demand in the United States by 20 to 25 percent if they were immediately and comprehensively adopted across the residential, commercial, industrial, and transportation sectors.             Material Atmospheric Lifetime Global Warming Potential Hydrofluoro-olefins (HFOs) HFO-1234yf 10.5 days Less than 1 HFO-1234ze 16.4 days Less than 1 HFO-1233zd 26 days Equal to 1 Hydrofluorocarbons (HFCs) HFC-134a 13.4 years 1,300 HFC-152a 1.5 years 138 HFC-245fa 7.7 years 858 HFC-125 28.2 years 3,170 Carbon dioxide CO2 Ranges from 5 to 200 years 1 Honeywell Performance Materials and Technologies (PMT) is a global leader in developing advanced materials, process technologies and automation solutions. PMT’s Advanced Materials businesses manufacture a wide variety of high-performance products, including environmentally friendlier refrigerants and materials used to manufacture end products such as bullet-resistant armor, nylon, computer chips and pharmaceutical packaging. Process technologies developed by PMT’s UOP business (www.uop.com) form the foundation for most of the world’s refiners, efficiently producing gasoline, diesel, jet fuel, petrochemicals and renewable fuels. PMT’s Process Solutions business (www.honeywellprocess.com) is a pioneer in automation control, instrumentation and services for the oil and gas, refining, pulp and paper, industrial power generation, chemicals and petrochemicals, biofuels, life sciences, and metals, minerals and mining industries. Honeywell (www.honeywell.com) is a Fortune 100 diversified technology and manufacturing leader, serving customers worldwide with aerospace products and services; control technologies for buildings, homes, and industry; turbochargers; and  performance materials.  For more news and information on Honeywell, please visit www.honeywellnow.com. This release contains certain statements that may be deemed “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical fact, that address activities, events or developments that we or our management intends, expects, projects, believes or anticipates will or may occur in the future are forward-looking statements. Such statements are based upon certain assumptions and assessments made by our management in light of their experience and their perception of historical trends, current economic and industry conditions, expected future developments and other factors they believe to be appropriate. The forward-looking statements included in this release are also subject to a number of material risks and uncertainties, including but not limited to economic, competitive, governmental, and technological factors affecting our operations, markets, products, services and prices. Such forward-looking statements are not guarantees of future performance, and actual results, developments and business decisions may differ from those envisaged by such forward-looking statements. We identify the principal risks and uncertainties that affect our performance in our Form 10-K and other filings with the Securities and Exchange Commission.