Honeywell International Inc. HON announced that it will back the efforts of the U.S. Environmental Protection Agency (“EPA”) to curb the usage of hydrofluorocarbons (HFCs) causing high global warming, in applications ranging from refrigerants to aerosols and foam-insulation blowing agents. EPA’s initiatives aim to increase adoption of materials that have drastically lower global-warming potentials.
Per the EPA, the proposed rule would eradicate approximately 54–64 million metric tons of carbon dioxide equivalent from the atmosphere in 2025. This is comparable to eliminating the carbon dioxide emissions from an annual electricity usage of over 5.8 million homes.
Honeywell hailed the EPA’s efforts as a milestone in restricting the emission of HFCs, one of the most powerful greenhouse gases affecting our lives at present. Apart from stimulating private sector innovation and creating jobs, these initiatives will enable users to adopt solutions with comparatively minimal impact on the environment.
In fact, these actions have already driven companies like Honeywell to address the issue of climate change through innovative solutions. Honeywell, along with its suppliers, has committed almost $900 million toward investments in research and development and new capacity. They are attempting to produce next-generation refrigerants, aerosols, solvents and insulation materials with global-warming potentials equal to or better than carbon dioxide and at least 99% lower than most present-day technologies. To date, Honeywell has invested over $400 million in support of these new products.
Honeywell spearheaded the technology behind hydrofluoro-olefins (HFOs), which deliver the energy efficiency, efficacy and non-ozone-depleting benefits of HFCs, but with a bare minimum of global warming. Honeywell's Solstice line of HFOs includes Solstice zd refrigerant, Solstice Liquid and Gas Blowing Agents for foam applications, Solstice yf for automobile air conditioning, Solstice Propellant for aerosol applications and Solstice Performance Fluid for use as an industrial solvent. All these products have been certified under the EPA's Significant New Alternatives Policy (“SNAP”) program.
Almost half of Honeywell's portfolio is committed to energy-efficient products and services. Stringent environmental regulations have been beneficial for many of Honeywell's products, from turbochargers to automation and control equipment for factories, as well as commercial and residential buildings.
Honeywell presently carries a Zacks Rank #3 (Hold). Better-ranked stocks include Carlisle Companies Incorporated CSL, Koninklijke KPN N.V. KKPNF and AGL Resources Inc. GAS, each holding a Zacks Rank #2 (Buy).
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