Honeywell (NASDAQ: HON) is partnering with Signal Power Group (“Signal Power” or “SPG”) to expand the reach of Honeywell’s storied T55 turboshaft engine to include a new and innovative use in the industrial and marine end markets. The engine technology has been licensed to Signal Power, which will now be the original equipment manufacturer for new turbine drivetrains, that will, in part, be utilized in newly designed power generators. These new generators will bring lower emissions and greater versatility to customers. In support of the strategic relationship between Honeywell and Signal Power, investment funds managed by Morgan Stanley Energy Partners, part of Morgan Stanley Investment Management, have made a controlling equity investment in Signal Power.
“This new work with Signal Power Group will create high-density, compact power solutions for a wide range of uses in the industrial and marine industries. These generators will offer many advantages over diesel-powered solutions, such as lower maintenance hours and costs, substantially lower emissions, higher power density, and greater fuel flexibility,” said T.J. Pope, senior director and product manager, Military Turboshaft Engines, Honeywell Aerospace. “Additionally, this creates a new business segment for Honeywell for our famed T55 helicopter engine, but outside the traditional aerospace market.”
Although much of the mobile power market today relies on diesel fuel, new unique designs from Signal Power Group and Honeywell will facilitate using environmentally friendly fuel sources, renewable natural gas and hydrogen blends of gaseous fuel. In addition to reducing emissions, these fuels provide a lower-cost alternative for customers currently buying and transporting products and providing services using diesel fuel. This not only drives compliance within industrial markets but also leverages Honeywell technology to reduce overall atmospheric pollutants.
“The power generation and industrial equipment end markets are undergoing historic transitions,” said Chris Boswell, co-founder of Signal Power Group. “Turbine engines that run on multiple types of renewable fuels with high performance and low emissions are an overlooked solution in today’s market. We believe the environmental benefits and cost savings from our turbines and related power solutions offer a compelling alternative to our customers compared with diesel engines used today.”
As part of their strategic relationship, Honeywell and Signal Power will also explore developing higher horsepower engines and advancing the use of hydrogen blended fuels to advance its potential as a zero-emissions fuel. Honeywell chose Signal Power primarily due to its experience providing highly reliable turbine engines and technology to the industrial and marine markets over the past 25 years.
“We are proud to support the growth of Signal Power and its outstanding team in its strategic alliance with Honeywell, a world-class partner with market-leading aerospace engine technology,” said John Moon, head of Morgan Stanley Energy Partners. “We believe that this alliance, paired with Signal Power’s decades-long turbine experience and differentiated product offerings in the industrial and marine end markets, will help deliver value to customers in a large and growing market.”
Signal Power intends to serve its industrial and marine customers with a complete solution, including a proprietary multispeed gearbox delivering a range of speeds engineered for relevant industrial and marine applications. The drivetrain will be sold with customary warranties, a variety of service plans and full performance monitoring software to facilitate predictive maintenance and instantaneous fault isolation and resolution, further reducing downtime and costs.
For more information on Honeywell’s industrial turbine, or aerospace propulsion offerings, visit aerospace.honeywell.com.
Honeywell Aerospace products and services are found on virtually every commercial, defense and space aircraft. The Aerospace business unit builds aircraft engines, cockpit and cabin electronics, wireless connectivity systems, mechanical components and more. Its hardware and software solutions create more fuel-efficient aircraft, more direct and on-time flights and safer skies and airports. For more information, visit www.honeywell.com or follow us at @Honeywell_Aero.
Honeywell (www.honeywell.com) is a Fortune 100 technology company that delivers industry-specific solutions that include aerospace products and services; control technologies for buildings and industry; and performance materials globally. Our technologies help aircraft, buildings, manufacturing plants, supply chains, and workers become more connected to make our world smarter, safer, and more sustainable. For more news and information on Honeywell, please visit www.honeywell.com/newsroom.
About Signal Power Group
Signal Power Group is a leading provider of turbine engine drive trains, integrated power applications, software solutions and related parts and services for the global industrial, energy and marine markets. Signal Power’s product offerings include turbine drive trains and related solutions for electric power generation, including microgrids, datacenters, combined heat and power and mobile power solutions, natural resources applications and the marine end markets. SPG was originally established by management and Notre Capital Ventures and is a portfolio company of Morgan Stanley Energy Partners.
About Morgan Stanley Energy Partners
Morgan Stanley Energy Partners, the energy-focused private equity business of Morgan Stanley Investment Management, is a leading energy private equity platform that makes privately negotiated equity and equity-related investments in energy companies located primarily in North America. Morgan Stanley Energy Partners pursues a differentiated investment strategy, focused on the buyout and build-up of strategically attractive, established energy businesses across the energy value chain in partnership with world-class management teams. For further information about Morgan Stanley Energy Partners, please visit www.morganstanley.com/im/energypartners.
About Notre Capital Ventures
Notre Capital Ventures (“NCV”) has created and launched eight companies that have resulted in initial public offerings on the NYSE and have generated aggregate annual revenues in excess of $7 billion. NCV has also created and/or provided both seed and growth capital to early-stage private companies with high growth business models. NCV invests in industries primed for consolidation, companies or industries that are undervalued or out of favor and companies introducing or deploying technologies that drive efficiency and profitability into markets exceeding $10 billion. For further information on Notre Capital Ventures, please visit www.notrecap.com.
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