Partnering with MGM Innova to sell resulting greenhouse gas credits for California's cap-and-trade program; sale of credits to offset costs of destroying refrigerants
MORRIS TOWNSHIP, NJ, April 2, 2012 Honeywell
announced today that it has begun destroying inventories of certain ozone-depleting refrigerants and selling the resulting emission reduction credits for use in California's greenhouse gas cap-and-trade program.The company has already destroyed more than 27,000 pounds of CFC-11, a chlorofluorocarbon refrigerant with one of the highest ozone-depleting potentials. It plans to destroy its remaining inventory of ozone-depleting CFC-11, CFC-12 and R-500 refrigerants this year. Honeywell's destruction of these CFCs is equivalent to eliminating over 125,000 metric tons of carbon dioxide emissions, or more than 22,000 passenger vehicles from the road for a year."Honeywell chose to destroy this inventory, rather than sell the refrigerants for use by others, as part of its commitment to environmental leadership," said Jeffrey Ballew, strategic marketing director for Honeywell Fluorine Products. "Honeywell has been at the forefront in developing today's non-ozone-depleting refrigerants and next-generation low-global-warming-potential refrigerants."The refrigerants were destroyed following protocols developed by the Climate Action Reserve, a national offsets program that sets standards for greenhouse gas emissions reduction projects. Honeywell expects to generate more than 125,000 Climate Reserve Tonnes (CRTs), which are credits it can sell to third parties who need credits for California's greenhouse gas cap-and-trade program. The sale of credits will offset the cost of destroying the refrigerants.Honeywell partnered with MGM Innova Consulting, which provides companies with low carbon solutions and services, to ensure the materials were destroyed in compliance with the Climate Action Reserve's U.S. ODS Project Protocol. The results were verified by TUV-SUD, a third-party auditing firm."MGM Innova is proud to support Honeywell for this project as it demonstrates leadership in this emerging area," said Marco G. Monroy, CEO of MGM Innova.The Climate Action Reserve establishes regulatory-quality standards for the development, quantification and verification of greenhouse gas (GHG) emissions reduction projects in North America. It issues CRT credits generated from such projects and tracks the transaction of credits over time in a transparent, publicly-accessible system.California's cap-and-trade program was established by the California Air Resources Board under California's Global Warming Solutions Act. Under the plan, emissions from the state's largest industrial facilities will be capped in 2013 and then gradually decreased over eight years as part of an effort to reduce greenhouse gas emissions and encourage energy efficiency and renewable energy.Under California's program, certain companies are granted allowances for each metric ton of greenhouse gas they emit. They can trade unused allowances or purchase eligible emission reduction credits as needed to stay under the cap.Honeywell Performance Materials and Technologies is a global leader in developing and manufacturing advanced materials and process technologies. These materials and technologies are used by people every day in a wide range of industries and applications, from petroleum refining to environmentally friendlier refrigerants to bullet-resistant vests. Our advanced materials are critical in the manufacture of products ranging from nylon to computer chips to pharmaceutical packaging. Process technologies developed by our UOP business form the foundation for most of the world's refiners, efficiently producing gasoline, diesel, jet fuel and petrochemicals. UOP is now pioneering technology to produce real fuels from renewable energy sources.Honeywell (
) 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 specialty materials. Based in Morris Township, N.J., Honeywell's shares are traded on the New York, London, and Chicago Stock Exchanges. For more news and information on Honeywell, please visit
.This report 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 occur in the future are forward-looking statements. Forward-looking statements are based on management's assumptions and assessments in light of past experience and trends, current conditions, expected future developments and other relevant factors. They are not guarantees of future performance, and actual results, developments and business decisions may differ from those envisaged by our forward-looking statements. Our forward-looking statements are also subject to risks and uncertainties, which can affect our performance in both the near- and long-term. 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.
# # #