President George W. Bush Tours Johnson Controls, Delivers Major Energy Policy Address

MILWAUKEE, Feb. 20 /PRNewswire/ -- President George W. Bush today visited the headquarters of Johnson Controls, Inc. to raise public awareness of the need for America's energy independence and to highlight some of the latest technology advances in energy efficiency.

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President Bush toured the company's Battery Technology Center, where advanced lithium-ion batteries for hybrid electric vehicles (HEVs) are being developed. Company executives also briefed the President on Johnson Controls' building efficiency systems that enable energy savings in commercial buildings and homes. Following the tour, the President delivered an hour-long speech on the Advanced Energy Initiative, introduced in his January 31st State of the Union message, in which he called for reducing the nation's dependence on foreign sources of energy.

"Johnson Controls has been on the cutting-edge of technology for more than a century. The people who work here are on the leading edge of change," said President Bush.

"It's an honor to host President Bush, and we applaud his work to develop an energy policy for America that emphasizes energy efficiency initiatives as well as important supply-side issues," said John M. Barth, Johnson Controls chairman and CEO. "We are proud that Johnson Controls is at the forefront of technology that enables more energy-efficient cars and buildings, and helps to make America more competitive in the global marketplace."

Hybrid Electric Vehicles (HEVs) and Lithium-Ion Technology

On the tour of Johnson Controls' advanced lithium-ion battery development laboratory, the President observed an array of highly specialized tools and equipment for designing, developing and testing power-storage and power- management concepts for HEVs powered by lithium-ion technology.

Currently, most HEVs rely on nickel-metal-hydride batteries. However, lithium-ion batteries are widely considered to be the long-term technology for HEVs because they offer major advantages in power-generation, size, weight, cycle life and cost. Barth noted that Johnson Controls R&D efforts focus on cathode materials, new cell designs for better thermal management, modular designs that enable the integration of safety technologies, and cell balancing to ensure safe operation as well as extended performance and cycling.

"Hybrid electric vehicles deliver important consumer benefits, including vehicle fuel economy improvements of between five and 35 percent, and better control and performance," he said. "In addition, there are other important advantages for the environment, national security and the U.S. economy."

"Clearly, HEVs and lithium-ion batteries will be the wave of the future, and we're proud to help drive this technology forward," Barth said. "Johnson Controls has the people, innovation and scale -- as the global leader in producing more than 100 million lead-acid batteries annually -- to help American industry achieve a leadership position in HEVs," he added.

Johnson Controls/JCS recently was awarded a $14.4 million contract by the United States Advanced Battery Consortium (USABC), to fund a two-year extension of \ existing research to develop an abuse-tolerant, lithium-ion battery offering extended life and significantly improved power-to-weight performance vs. current hybrid-battery technology. The USABC, which includes the U.S. Department of Energy, DaimlerChrysler, Ford and General Motors as members, supports research and development for advanced energy systems to power future HEVs. Johnson Controls is the only automotive supplier in the consortium.

Building Efficiency

The President also was briefed on Johnson Controls' Metasys(TM) building automation system, which optimizes energy usage and controls the building environment in the Battery Technology Center, as well as the other buildings on the Johnson Controls campus. Metasys provides full integration, monitoring and control of heating, air conditioning, lighting, security and fire systems. Through the system's reporting capabilities, operations personnel are able to increase overall efficiency of the facility.

"We believe energy efficiency, as an important part of a balanced energy policy, can create substantial benefits for the nation and for American consumers," said Barth. "When businesses use less energy, we reduce consumption of imported fuel, have greater reliability across more diverse sources of energy, minimize pollution and other environmental impacts, and free up capital for investment in business growth, jobs, products and services. Additionally, consumers with lower energy bills can save or spend more on goods and services," he added.

Barth commented that Johnson Controls helps its customers around the world optimize their energy use by providing building automation systems, advanced energy information systems, and lighting systems. With its recent acquisition of York International, the company now offers highly energy-efficient products including HVAC (heating, ventilation and air conditioning) equipment and refrigeration products, with global service capabilities.

The non-residential energy efficiency projects that Johnson Controls did from 1990 - 2000 are on track to deliver, over their collective lifespan, aggregate energy cost savings of $16.7 billion, electric load reductions equal to 2500 megawatts (the equivalent of 6 average size power plants) and electric energy savings enough to power all the households in California for more than two years. Additionally, these projects will reduce carbon dioxide emissions by 217 million tons -- roughly equivalent to the amount of carbon dioxide removed by planting 650 million trees.

"We believe that the American buildings market -- including government, commercial and residential properties -- has tremendous capability to reduce energy consumption by taking advantage of existing opportunities to improve efficiency, and that the savings can help drive technology innovation, community development and job creation," said Barth. "We look forward to supporting the President's Advanced Energy Initiative and the opportunities we hope it will provide for establishing U.S. energy independence."

Johnson Controls is a global leader in interior experience, building efficiency and power solutions. The company provides innovative automotive interiors that help make driving more comfortable, safe and enjoyable. For buildings, it offers products and services that optimize energy use and improve comfort and security. Johnson Controls also provides batteries for automobiles and hybrid electric vehicles, along with systems engineering and service expertise. Johnson Controls has 136,000 employees in more than 1,000 locations serving customers in 125 countries. Founded in 1885, the company is headquartered in Milwaukee, Wisconsin. For additional information, please visit http://www.johnsoncontrols.com/ .

First Call Analyst: FCMN Contact: kathryn.j.szczupakiewicz@jci.com