Honeywell
Shareholder Value versus CO2
Honeywell
Agenda
• Emission basics
• History and sector data
• Drivers and incentives
• Industrial Cogeneration
• Conclusion
Pascal Stijns
Vienna Dec.99
Honeywell
CO2-emissions basics
• E = MC2
MC2 = CO2
E = CO2 ( 66 %)
• 1 kWh = 3.6 MJ
• An average EU citizen produces 9100 kg/y CO2
• 1 GJ of heat produces 62 kg CO2
• 1 kWh ( electrical energy) requires 2.5 kWh of thermal
energy and produces 0.56 kg CO2
Pascal Stijns
Vienna Dec.99
Honeywell
CO2-emissions basics
Biomass CHP
Renew ables
Best CHP
CHP
Gas CC
Oil
Coal IGCC
Coal
-1000
-500
0
500
1000
gr CO2 per kWh
Pascal Stijns
Vienna Dec.99
Honeywell
CO2-emissions history
CO2 - emissions (mton/y)
25000
20000
15000
10000
5000
0
1980
1985
1988
1990
EU
1993
1994
1995
World
Source : Energy in Europe 1997
Pascal Stijns
Vienna Dec.99
Honeywell
EU CO2 Sectors
EU emissions distribution
1990
1994
P
ow
er
B
un
ke
rs
G
en
er
at
E
io
ne
n
rg
y
S
ec
to
r
In
du
st
ry
Tr
D
an
om
sp
es
or
t ic
t
&
Te
rti
ar
y
8000
7000
6000
5000
4000
3000
2000
1000
0
Source : Energy in Europe 1997
Pascal Stijns
Vienna Dec.99
Honeywell
EU CO2 Sectors
16%
2%
34%
21%
20%
7%
Bunkers
Power Generation
Energy Sector
Industry
Transport
Domestic&Tertiary
Source : Energy in Europe 1997
Pascal Stijns
Vienna Dec.99
Honeywell
EU Transport
2%
16%
34%
21%
7%
20%
Cars per 1000 inhabitans
500
400
300
200
100
0
Transport energy demand
300
1975
200
1985
1995
100
0
1975
Pascal Stijns
1985
1995
Vienna Dec.99
Honeywell
EU Transport
2%
16%
34%
21%
20%
7%
Positive effects
• train push
•?
Negative effects
• Increase transportation
E-commerce/ Internet
• Congestion's
• Alternatives ?
Pascal Stijns
Vienna Dec.99
Honeywell
EU Power Gen
2%
16%
34%
21%
20%
7%
Thermal efficiency
40
Source : Energy in Europe 1997
35
30
1985
1988
1990
EU
Pascal Stijns
1993
1994
World
Vienna Dec.99
Honeywell
EU Power Gen
2%
16%
34%
21%
20%
7%
Positive effects
• Efficiencies are increasing
• Switch to gas
Negative effects
• Deregulation's
• Pressure on nuclear
Source : Energy in Europe 1997
Pascal Stijns
Vienna Dec.99
Honeywell
2%
16%
Units
EU Domestic&Tertiary
34%
21%
7%
20%
100000
90000
80000
70000
60000
50000
40000
30000
20000
10000
0
0
200
400
600
800
1000
1200
MWh
Pascal Stijns
Vienna Dec.99
Honeywell
2%
16%
EU Domestic&Tertiary
34%
21%
20%
7%
Positive effects
• Awareness
• Tremendous untapped
potential
• Business opertunity
Negative effects
• Deregulation’s
• Long term contracts
Pascal Stijns
Vienna Dec.99
Honeywell
EU Industry
2%
16%
34%
21%
7%
20%
CHP % of total production (GWh)
Source : CoGen Europe 1999
UK
Sw den
Spain
Portugal
Netherlands
Italy
Ireland
Greece
Germany
France
Finland
Denmark
Belgium
Austria
EU
0%
Pascal Stijns
10%
20%
30%
40%
50%
60%
Vienna Dec.99
Honeywell
EU Industry
Pascal Stijns
34%
21%
20%
7%
Cogen potential
NL
DK
L
PT
SW
GR
B
Source : CoGen Europe 1999
CHP Target
Government policy
Government support
Market size potential
Planning
Export power price
Back up power price
Standby power price
Grid connection
Attitude of utilities
Overcapacity
Gas availability
Access to contract
Gas price
Licenses
Competition of suppliers
TPF used
ESCO's active
Liberalisation of electricity
Electricity market access
Gas market liberalisation
2%
16%
POL
BULG
SLOVK
LATV
EST
LITH
CROA
-15
-10
-5
0
5
10
15
Vienna Dec.99
Honeywell
EU Industry
C R OAC Z R EP LI TH
IR
ES T
IT
2%
16%
34%
21%
7%
20%
LA TV R OM S LOVKS LOVN B U LG H U N G P OL
AT
B
FR
GR
SP
SW
TU R K
PT
GE
L
FI
DK
UK
NL
-1
-1
-1
-1
-1
-1
-1
-1
-1
-1
-1
-1
-1
-1
-1
-1
-1
-1
-1
-1
-1
-1
-1
1
1
1
-1
1
-1
-1
0
0
-1
0
0
0
1
1
0
0
0
-1
0
1
-1
0
1
1
1
1
0
1
1
1
1
-1
-1
1
0
1
0
-1
-1
1
1
0
-1
0
1
1
1
-1
-1
1
1
1
1
0
1
1
1
1
1
1
0
1
-1
1
1
1
1
1
1
1
-1
1
1
1
1
-1
1
1
1
0
0
1
1
1
-1
0
0
0
-1
0
0
0
0
0
-1
0
0
0
0
-1
1
0
-1
1
1
-1
-1
-1
-1
-1
-1
-1
-1
-1
1
1
0
-1
-1
1
1
1
-1
1
-1
0
-1
-1
0
-1
-1
-1
-1
-1
-1
0
-1
1
0
0
0
1
1
1
1
1
-1
-1
0
0
-1
-1
-1
-1
0
0
-1
1
0
0
0
1
1
1
1
1
0
0
-1
-1
-1
-1
-1
0
0
-1
-1
0
1
-1
-1
1
1
1
1
1
-1
-1
-1
-1
-1
0
-1
-1
-1
-1
-1
-1
-1
-1
-1
-1
-1
-1
0
0
0
0
1
1
0
-1
1
0
0
-1
0
-1
1
1
0
0
0
0
0
-1
0
0
-1
0
0
-1
1
1
-1
1
1
-1
0
-1
-1
1
0
-1
-1
-1
1
1
1
1
0
1
-1
1
1
1
-1
1
-1
-1
1
1
0
-1
1
1
1
-1
-1
-1
-1
-1
0
-1
-1
-1
0
-1
-1
-1
-1
-1
-1
-1
-1
0
-1
-1
1
0
1
0
1
1
-1
-1
0
-1
-1
0
0
0
0
-1
0
-1
0
0
0
0
-1
0
-1
-1
0
0
0
-1
-1
0
-1
0
-1
1
0
0
0
0
-1
0
0
0
0
0
0
1
0
1
-1
1
-1
0
-1
0
-1
-1
0
0
0
1
1
1
1
1
1
1
1
1
0
1
1
1
1
1
1
-1
-1
-1
-1
-1
-1
-1
-1
-1
-1
-1
1
0
1
-1
1
0
1
1
1
1
0
0
1
1
1
-1
-1
-1
-1
-1
1
-1
-1
-1
-1
-1
-1
1
-1
0
1
1
1
1
1
0
1
1
1
1
-1
-1
-1
-1
0
-1
-1
-1
-1
-1
-1
-1
0
1
1
-1
-1
1
0
0
0
1
-1
1
1
0
1
-1
-1
-1
-1
-1
-1
-1
-1
-1
-1
-1
-1
-1
-1
-1
-1
-1
-1
0
0
0
-1
-1
1
-1
0
-1
-1
-1
-1
-1
Pascal Stijns
-1
-1
-1
-1
-1
-1
-1
-1
-1
-1
-1
-1
-1
-1
-1
0
-1
1
-1
-1
1
-1
0
0
Source : CoGen Europe 1999
0
-1
-1
-1
0
-1
Vienna Dec.99
Honeywell
EU Industry
2%
16%
34%
21%
20%
7%
Positive effects
• Awareness
• Marketing issue
• Tremendous untapped
CHP potential
Negative effects
• Deregulation
• ROI/IRR
• Fierce competition
Pascal Stijns
Vienna Dec.99
Honeywell
What is the ultimate driving factor
2%
16%
34%
21%
20%
Pascal Stijns
7%
Vienna Dec.99
Honeywell
What does Wall Street demands ?
• Increase growth and market share
• Increase profitability
• Increase the price
• Lower the cost
• Digitalisation/Automation
• Globalisation
• Outsourcing of services/assets
• Energy
Pascal Stijns
Vienna Dec.99
Honeywell
Energy Cost Reduction
Optimise energy generation
Optimise distribution
Optimise consumption
Pascal Stijns
Vienna Dec.99
Honeywell
Saving Examples
• University of Cologne GE $ 145.000
• Glan Hafren Hospital UK $ 800.000
• Honeywell Emmen NL $ 150.000
• Otrokivice District Heating CZ $ 700.000
• Siklos District Heating HU $ 100.000
• Krakow POL 33 % energy reduction
• Martin District Heating SLOV $ 350.000
• Tushino Russia $ 1.100.000
• Kiev Ukraine $ 30.000 ( 1 out 1600 buildings)
• Beijing China savings +/- 30 %
• Hanvit Bank Korea $ 570.000
• Inland Revenue US $ 100.000
• Paint Shop Mexico $ 80.000
Pascal Stijns
Vienna Dec.99
Honeywell
Recent CHP references
• 540 MWe CHP Netherlands
• 300 MWe CHP Scottland
• 200 MWe CHP Czech Rep
• 180 MWe CHP Hungary
• 150 MWe CHP UK
• 120 MWe CHP Poland
• 110 MWe CHP Finland
• 100 MWe CHP Germany
• 100 MWe CHP France
• 40 MWe CHP Spain
• 25 MWe CHP Belgium
Pascal Stijns
Vienna Dec.99
Honeywell
Summary
• CO2 reduction is possible and can be implemented in short to
medium terms everywhere
• Focus on co-generation (industry and buildings) to
capture the potential and to leverage existing technologies
• A positive,substainable financial incentive and legal
framework is necessary to boost the process
NO TIME TO WASTE
Pascal Stijns
Vienna Dec.99