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Honeywell And Stor Generation Connect With Building Owners To Stabilise Electrical Grid, Help Avoid Outages

-- Stor Generation Will Use Honeywell Technology to Aggregate Energy Reduction
for National Grid - a First in the UK

-- Managing Consumption Across Multiple Buildings Helps Keep Power Flowing

-- Participating Companies Gain Revenue While Balancing Supply and Demand

-- Helps Address Carbon Reduction, Renewable Energy Goals

BRACKNELL, England, Jan. 30, 2014 /PRNewswire/ -- Honeywell (NYSE: HON) and power management company Stor Generation Ltd. have launched a new, first-of-its-kind smart grid programme in the U.K. The companies will use Honeywell technology to temporarily trim energy use in commercial and industrial facilities, combining the excess power to help stabilise the electrical grid, and address country-wide carbon reduction and renewable energy commitments.

Under the programme, Stor Generation will pay facility owners to lower consumption when the call for electricity starts to outpace what power plants and renewable resources are able to produce. Honeywell will work with these organisations to identify, implement and automate short-term changes to heating and cooling equipment, lighting and other building systems — a concept known as automated demand response (ADR).

Stor Generation will use Honeywell's Akuacom software as a service (SaaS) offering to connect with the participating facilities and communicate when it is necessary to reduce energy use. Stor Generation will then aggregate and provide the resulting reserves to National Grid for its Short Term Operating Reserve (STOR) initiative. STOR and similar programmes help ensure grid stability to compensate for spikes in consumption, and times when intermittent renewable energy sources such as wind and solar, an increasing part of the generation mix, are unable to supply power.

This will be the debut of ADR technology in National Grid's U.K. and European territories. And Stor Generation is the first energy aggregator in the region to use ADR to reduce grid stress rather than calling on customers to switch over to back-up diesel generators.

"The technology required to avoid a megawatt of consumption costs a fraction of that needed to pump out an additional megawatt," said Jeremy Eaton, vice president of Honeywell Smart Grid Solutions. "From a cost-benefit standpoint, ADR is the most prudent option for reducing energy use and is the most clean, sustainable path to energy reliability."

"Honeywell's solution enables us to offer clients a new source of revenue, with little or no impact on a building's operation or occupants," said Stor Generation chief executive officer Dr. Azad Camyab. "It also provides clients with near real-time visualisation of energy consumption and gives them the ability to reduce costs by offering site load flexibility. We're delighted with the partnership and look forward to working with Honeywell to maximise value for our clients."

As Stor Generation signs up companies for the programme, Honeywell will conduct site audits to design load-shed strategies for the building, provide testing and training, and connect each facility to the automated system. Building owners will select and approve the specific energy-reduction measures before they are registered with Stor Generation's programme.

In addition, the hardware and software installed can help each organisation better manage electricity use every day and boost long-term energy efficiency.

Honeywell is a pioneer and leader in ADR technology with 20 programmes underway in the United States and around the world, including groundbreaking projects in Australia, China, India and the U.K. In addition, Honeywell has managed demand response and energy efficiency projects for more than 100 utilities. With controls in 150 million homes, 10 million buildings and thousands of industrial sites across the globe, Honeywell has the technology and expertise to empower smart energy producers and users.

Visit honeywellsmartgrid.com or follow HoneywellGrid on Twitter for more information on the company's smart grid technology and services.

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. 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 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.

Aaron Parker

Mark Hamel

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