Business Perspectives on Energy Efficiency from UTC

September 17, 2009
Kelly Romano
President
Building Systems and Services
Carrier Corporation

UNITED TECHNOLOGIES$58.7B revenues; seven business units
Heating, ventilating, cooling & refrigeration systems
Clean power, cooling / heating solutions
Aircraft engines, gas turbines & space propulsion systems
Helicopters
Industrial & aerospace systems
Security & fire protection services
Elevators, escalators, moving walkways, people movers & horizontal transportation systems
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EVOLUTION OF UTC EH&S GOALS
2011-2020
Eliminate adverse impacts
2007 – 2010
Value Chain
Focus
1997 – 2006
Compliance +
Conservation
1991 – 1996
Compliance
+ Key Suppliers
+ UTC Products
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ENVIRONMENT, HEALTH & SAFETY 1997-2006 results
Waste (lbs.)
Air
Emissions (lbs.)
Water (gal.)
Recycled
Non-Recycled
Energy (BTUs)
Normalized
69%
44%
56%
19%
72%
49%
52%
13%
66%
39%
Absolute
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Materials of Concern
Energy Efficiency
Packaging
100%
10%
10%
eliminated in new products
from product baseline
in product packaging
ENVIRONMENT, HEALTH & SAFETY GOALS2010 goals for internal operations and products
Factory & operations metrics
NonGreenhouse GasEmissions
GreenhouseGases(CO2 e)
Waste
Water
Industrial Process
Non-Recycled
Consumption
Chemicals Discharged
20%
12%
10%
30%
10%
10%
Product metrics

UTC SUSTAINABILITY ACTIVITIES
Supplier EH&S
Expectations
Materials
Of Concern
Product
Packaging
Product
Efficiency
Developed
Logistics
Waste
Developing
Transportation
Energy
Product LCA
Sustainability
Communications
Giving:
Environmental
Air
Supplier EH&S
Impacts
Codes of
Conduct
Giving: Engineering
Water
Product Carbon
Footprints
Sustainability Investor Relations
Giving: Arts
Supplier
Labor
Practices
Transparency
Diversity
Product Material
Content
GHG
Project Investment
Education/ ESP
Carbon costing
Product safety
Product Investment
Compliance
Emerging issues:
Regulatory, climate, H&S,
material scarcity, ecosystems, etc.
Volunteerism
Governance
Ethics
Safety
Sustainability
Financial
Financial
Social
Environmental
Social
Environmental
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2006 Corporate Responsibility Report
GHG REDUCTION STRATEGYEnergy & GHG reductions = lower operating costs
UTC Standard Practice-017
Auditing of existing sites: identify opportunities
Maximize efficiency of older systems
Maximize efficiency potential of
new systems, new leases and fleet
Leverage cogeneration
Maximize efficiency of new sites:
Green buildings/zero-net energy buildings
Leverage case studies for UTC product sales
Supply chain energy and GHG reductions
Past 2007- 2010 Future
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U.S. ENERGY CONSUMPTION
(Btu)
Energy consumption in Quadrillion Btu.
1 quadrillion = 1,000,000,000,000,000 (15 zeros)
Transportation Btu use:
Auto/truck 74%
Air 8%
Off-highway 7%
Water 5%
Other 6%
100%
24% Other
28%
Transportation
9% IT / electronics
10% Water heating
32%
18% Lighting
2005 US Buildings energy use by type (Quad Btu)
Coal 38%
Gas 31%
Nuclear 15%
Oil 9%
Renew 8%
Industry
Comm’l 18%
Residential 22%
40%
39% HVAC
Buildings*
US consumption in 2005 was 100.2 quadrillion Btu
Source: 2007 Department of Energy Buildings Energy Databook
* Includes Commercial and Residential buildings
Which reported on 2005 data
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WBCSD ENERGY EFFICIENCY IN BUILDINGSPath to zero net energy buildings
2007/2008
2008/2009
Perception that buildings CO2 impact is 19% -reality is 40% of CO2 emissions.
Perception that certified sustainable building will cost 17% more than a “standard” building - reality is the additional cost is 5%.
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LEED CERTIFIEDGlobal building policy
LEED certified is UTC standard for all new construction
LEED Gold is target
Planned projects total ~ 1 million ft2
Otis TEDA manufacturing facility in Tianjin, China is LEED Gold
Pratt & Whitney engine overhaul facility in Shanghai, China is LEED Silver
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LEED CERTIFIEDU.S. Existing Buildings
Charlotte, NC
First UTC manufacturing facility in world LEED-EB
19% more energy efficient*
No irrigation for lawn and landscaping
Over 80% recycling rate
Carrier’s safety performance continues to improve. Carrier finished February with a TRIR of 0.59, compared to our 2009 goal of 0.72. Our LWIR performance is 0.08 vs. a 2009 goal of 0.09. Factory cases are slightly higher than service cases (20 vs. 13) . BSS (evenly split between factory & service) and CCR are high business drivers.
Chiller manufacturing facility
Huntington, IN
30% more energy efficient*
Reduced water usage
Instituted green housekeeping
Over 50% recycling rate
01 02 03 04 05 06 07 08 09 YTD
Recordable Injury 3.19 2.64 1.95 1.65 1.24 1.15 0.91 0.76/.84 0.59/.72
Lost Day Rate 0.44 0.38 0.29 0.21 0.2 0.15 0.12 0.13/.10 0.08/.09
Electronic controls
manufacturing facility
*Compared to other buildings with similar function
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WASHINGTON, D.C. PROJECTS
NORESCO
National Gallery of Art
Washington, D.C.
NORESCO
U.S. Capital Complex
Washington, D.C.
EMSI®
Founding Farmers Restaurant
Washington, D.C.
LEED® Gold Certification
80% Energy Star Appliances
Energy efficiency light system that exceeds ASHRAE 90.1 lighting power standards by 10%
Average Annual Savings: $350,000
VFD replacement program
Energy efficient lighting upgrade program
Installation of bypass ductwork to the NGA HVAC system

Average Annual Savings: $2.0 million
Replacement or retrofit of nearly 200,000 lighting fixtures
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Building automation system controls HVAC, lighting and other systems, optimizing energy consumption
Integrated security solutions provide access control, visitor management, and video management capability
Requires up to 90% less water than traditional sprinkler systems
ENERGY EFFICIENT SOLUTIONS
Elevators that use less energy when lifting loads – and give back energy on descent
Energy audit and sustainability services to reduce energy use and operating expenses
Combined cooling, heating and power solutions can double energy efficiency over most conventional grid sources
with Foxfire™ technology
The world’s most efficient
non-ozone-depleting water-cooled chiller
Clean power, cooling / heating power

ROADMAP TO FUTURE
Whole building, whole life = CO2 reductions
Buildings have the greatest potential and are the cheapest option
Address both new buildings and retrofit / replace existing buildings
Investments are needed to push the market.
The market alone will not do it
Simple subsystemapproaches will not be enough
All actors need to be involved
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