The deal, announced last week, involves an "aggressive" energy conservation program that will use green technology in addition to standard improvements.
Ron Blagus, energy market director for Honeywell Building Solutions, said Honeywell has proposed that the housing authority use "biomass thermal" technology, which involves the gasification of organic material, such as wood chips, to make a sustainable energy source for heating.
Blagus said the use of biomass gas, which burns much like natural gas, reduces dependency on natural gas and oil, which are subject to higher inflation rates than is wood waste.
Resulting energy savings can pay back the cost of a biomass system in less than eight years, while Honeywell's overall conservation programs usually pay for themselves within 15 to 20 years, he said.
"Environmental stewardship and conservation solutions should have strong economic drivers so people can afford to buy them," Blagus said. "It is also a hedge against energy inflation."
Honeywell will also opt for green roof systems on some of the almost 800 housing authority buildings, which include high-rise apartments, single-family homes and offices. Covering roofs with plant materials that soak up water and sunlight can lower temperatures, and thus cooling costs, and reduce water runoff.
These green ideas will be implemented along with conventional energy-saving improvements such as water control devices, better insulation and more efficient heating, cooling and lighting systems.
Honeywell says programs such as this can cut energy consumption and greenhouse gas emissions by 15 percent or more.
"This brings together two of the most important issues that we have: affordable housing and environmental protection," said Minneapolis Mayor R.T. Rybak, whose office introduced the two partners.
The housing authority will take out a loan to finance Honeywell's work and will pay it back with energy savings from the improvements, which are guaranteed by Honeywell. If the agency comes up short of the projected savings, Honeywell will cover the difference.
Housing authority officials said they have identified $200 million in needed facility improvements, and Honeywell's work should cover $30 million to $50 million of that.
The housing authority is Minnesota's largest housing provider, and seeks to become one of the nation's first public housing authorities to earn Energy Star accreditation from the Environmental Protection Agency and the Department of Energy.
Blagus said Honeywell expects to finish its audit of the housing authority's facilities and begin work next year.
