Hawaii Department of Transportation Approves Major Upgrades for State's Airports

Johnson Controls to deliver $518 million in cost savings while enabling energy efficiency, creating jobs, enhancing tourism, and supporting the state economy

News Release from Johnson Controls

MILWAUKEE, Dec. 18, 2013  -- Johnson Controls, a global multi-industrial company with established core businesses in the building and automotive industries, was awarded a 20-year contract by the Hawaii Department of Transportation (HIDOT) to design, manage and install energy efficiency measures that will upgrade facilities, reduce energy usage by about 49 percent and with additional operational improvements save a total of $518 million at 12 state-operated airports.

The program will deliver the results through new lighting systems, ventilating and air conditioning upgrades and renewable energy sources, while creating hundreds of local jobs and adding millions of dollars to the state economy.

Since Hawaii's energy costs are two to three times the U.S. average, the project will play an important role in helping HIDOT operate its airports more efficiently.

Tourism is a vital part of the Hawaiian economy, with nearly all visitors entering the state through one of its 12 airports. Those airports annually serve about 16.5 million residents and visitors.

"Hawaii, which relies heavily on imported oil, has set a 2030 goal to meet 70 percent of its energy needs through efficiency measures and renewable sources," said Dave Myers, president, Johnson Controls Building Efficiency. "This project will help the state meet that goal and is a model for others who are looking for ways to become more efficient."

Johnson Controls will install 9,100 solar photovoltaic panels at the airports to generate 2.6 megawatts of renewable energy. Nearly 75,000 lighting fixtures will be replaced with high-efficiency LED and fluorescent equipment. In addition to the ventilating and air conditioning upgrades, the project will address many deferred maintenance items, including roof repairs and equipment replacement. 

Capital improvements of $150 million will be completed using a guaranteed energy performance contract.  That means the upgrades will be paid for by the savings in energy and utility costs over the term of the contract.  The state will not pay upfront costs, and Johnson Controls guarantees the contracted savings. The company has been engaged in more than 2,500 performance contracting projects with guaranteed savings of $7.5 billion.

HIDOT will save $15.8 million in utility savings the first year after project implementation, followed by an additional 5 percent savings in each remaining year of the contract. Construction will begin in January 2014 with completion in December 2015.

Across the state, this project will create more than 300 skilled trade and nearly 90 professional, administrative and managerial jobs while adding more than $670 million in economic development.

Johnson Controls has conducted business in Hawaii since 1960, starting with installations at a landmark hotel in Honolulu.

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About Johnson Controls

Johnson Controls is a global diversified technology and industrial leader serving customers in more than 150 countries. Our 170,000 employees create quality products, services and solutions to optimize energy and operational efficiencies of buildings; lead-acid automotive batteries and advanced batteries for hybrid and electric vehicles; and interior systems for automobiles. Our commitment to sustainability dates back to our roots in 1885, with the invention of the first electric room thermostat. Through our growth strategies and by increasing market share we are committed to delivering value to shareholders and making our customers successful. In 2013, Corporate Responsibility Magazine recognized Johnson Controls as the #14 company in its annual "100 Best Corporate Citizens" list. For additional information, please visit http://www.johnsoncontrols.com

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