Newark Mayor Ras Baraka and Department of Engineering Director Phillip Scott announced on Tuesday that the City of Newark and Honeywell will partner in an energy savings improvement project to help the city save money and taxpayer dollars.
Honeywell was selected as the city’s energy services company and will lead a program to upgrade building infrastructure in 17 facilities – from City Hall to Symphony Hall – and help cut the city’s annual energy operating costs by an estimated 36 percent with a potential savings of nearly $1 million a year.
This is part of the Department of Engineering’s commitment to Newark’s Sustainability Action Plan, aimed at making Newark healthier, greener and more vibrant through various city-wide sustainability programs.
The Honeywell-led facility upgrades are being funded with a $2.3 million rebate from the New Jersey Clean Energy Program and a 20-year, $15.4 million energy savings service contract. The contract enables the funding of the upgrades with annual energy and operational savings resulting from the project work. Honeywell guarantees the savings, eliminating the need for upfront capital investment and making it a self-funding project over the contract term.
Honeywell is contracting with many local resources to complete the work, with approximately 40 percent of the project labor coming from Newark residents.
The building infrastructure improvements are expected to be completed by the end of 2019. When completed, the building upgrades aim to help Newark reduce greenhouse gas emissions by 2,930 metric tons a year – equivalent to eliminating 564 cars from the road.