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. Last Updated: 07/27/2016

Honeywell Set to Update Moscow's Heating Plants

Honeywell Inc. expects to complete by the fall a $3 million energy conservation project that it hopes will lead to several hundred million dollars in future contracts, a company official said Monday.

According to Yury Tarasenko, an engineer with Honeywell in Moscow, the company agreed to grant $1 million for the pilot program in hopes of winning additional orders to modernize up to 55 of Moscow's decrepit heating stations.

Under the project, being carried out at a heating system in the Moscow suburb of Tushino, Honeywell will replace aging Russian equipment with its own central computer capable of monitoring "smart" valves, activators, sensors and pumps, providing automatic control and a readout of real-time energy consumption.

Vladimir Kudryashov, an energy-saving specialist with the Moscow government's Energy Department said that the city was using the pilot program to see whether Honeywell's upgraded energy system should be installed elsewhere in the Russian capital.

"We hope that this one will be successful and will pave the way for the larger ones", he said.

The Moscow city government and Honeywell's Russian partner, Agrokhim, have each also invested $1 million in the project. They expect to recover their investment in two years, with profit coming from additional gas being sold abroad, said Tarasenko.

The project will save the Tushino district alone at least 20 percent of its annual gas consumption, or about 18 million cubic meters of gas per year and will significantly reduce pollution, according to a Honeywell-sponsored study.

The project is part of an April 1993 directive by Russian Prime Minister Viktor Chernomyrdin aimed at cutting Russia's wasteful use of energy to lay the groundwork for significant prices hikes. The initiative also encourages Western companies to invest in such projects by allowing them to keep up to 50 percent of the fuel savings, to be used to repay the investment.