HISENSE SELECTS HONEYWELL TO MAKE HOME AIR CONDITIONERS SUSTAINABLE

Rhea-AI Summary

Hisense partners with Honeywell to integrate Solstice refrigerant technology, reducing environmental impact. Honeywell's Solstice 454B offers high performance with low global warming potential. The move aligns with global efforts to phase out high-GWP refrigerants.

Environmental Analyst

From an environmental perspective, the transition to Honeywell's Solstice refrigerant technology by Hisense is a significant step towards sustainability. The use of low-GWP refrigerants is crucial in mitigating climate change, as traditional high-GWP hydrofluorocarbons (HFCs) contribute substantially to global warming. The adoption of Solstice® 454B, with its lower GWP, aligns with legislative trends aimed at reducing carbon footprints and adhering to international environmental agreements such as the Kigali Amendment to the Montreal Protocol.

This shift not only demonstrates corporate responsibility but also positions Hisense as a forward-thinking player in the consumer electronics and appliance industry. As regulatory pressures increase, companies that preemptively adjust their technologies are likely to experience fewer disruptions and may benefit from incentives for eco-friendly practices. Additionally, the environmental savings from reduced carbon emissions contribute to the broader societal goal of combating climate change, which can enhance brand reputation and consumer loyalty.

Market Research Analyst

Market trends indicate a growing consumer demand for eco-friendly and energy-efficient home appliances. Hisense's integration of Honeywell's Solstice refrigerant technology is likely to resonate positively with environmentally conscious consumers, potentially increasing market share and brand differentiation. This strategic move also anticipates future market shifts as competitors may be compelled to follow suit to meet both regulatory requirements and consumer expectations.

Furthermore, the partnership with Honeywell positions Hisense advantageously in terms of innovation leadership. By adopting Solstice® 454B, Hisense may also see improvements in operational efficiency due to the refrigerant's performance in cooling and heating, which can translate into cost savings and improved product lifespan. These factors could lead to a positive financial outlook for Hisense, as the market increasingly rewards companies that combine sustainability with high-performance products.

Financial Analyst

Investors should consider the long-term financial implications of Hisense's adoption of Honeywell's Solstice technology. Honeywell's $1 billion investment in Solstice's research and development indicates a strong commitment to this line of products, suggesting potential for growth and market expansion. The shift towards low-GWP refrigerants is likely to gain momentum and early adopters like Hisense might experience first-mover advantages in terms of market share and regulatory compliance.

However, it is essential to monitor the costs associated with integrating new technologies. While the initial investment may be substantial, the potential for reduced regulatory risks and increased consumer demand for sustainable products could offset these costs over time. Additionally, the energy efficiency of Solstice refrigerants may lead to cost savings for end-users, which could further drive sales and enhance Hisense's financial performance in a competitive market.

Integration of Honeywell's Solstice refrigerant technology will help reduce the environmental impact of Hisense's residential air conditioner units

CHARLOTTE, N.C., Feb. 29, 2024 /PRNewswire/ -- Honeywell (Nasdaq: HON) today announced that Hisense, a global consumer electronics and appliance manufacturer, will incorporate Honeywell's energy-efficient Solstice low-global warming potential (GWP) refrigerant into its residential air conditioning units.

Hisense units will use Honeywell Solstice^® 454B, a low-GWP refrigerant acknowledged for its outstanding performance in both cooling and heating. Hisense's decision to integrate Honeywell's Solstice refrigerant is in line with global efforts to phase out higher GWP refrigerants for air conditioners and heat pumps.

"Driven by a commitment to pioneering scientific and technological advancements, Hisense relentlessly strives to enhance the quality of life and bring boundless joy to countless families," said Hao Wang, general manager of the Supply Chain Management Department at Hisense. "Our alliance with Honeywell signifies a formidable leap towards sustainability, as we integrate cutting-edge refrigerants into our industry-leading air conditioning units, ensuring unparalleled cooling efficacy with minimal environmental impact."

The integration of Honeywell's Solstice refrigerant into Hisense units comes amidst the recent increase in legislative mandates across the country to reduce the use of high-GWP hydrofluorocarbons (HFCs) in response to the growing global emphasis on addressing climate change. The partnership between Hisense and Honeywell also follows the U.S. Environmental Protection Agency's recent announcement of a 40% quota cut in the production of HFC refrigerants as of January 1, 2024.

"The world is migrating away from refrigerants with high-global warming potential, but it is also accelerating innovation to create responsible replacements that lower carbon footprints and improve energy efficiency, all without sacrificing safety and end-product performance," said Jeff Dormo, president of Honeywell Advanced Materials. "Honeywell anticipated the need for these solutions more than a decade ago when we introduced our Solstice technology, and today we are pleased to be able to partner with manufacturers like Hisense that are leveraging our expertise to enhance their own sustainability efforts in alignment with the global energy transition."

Honeywell has invested more than $1 billion in research, development and the creation of new capacity for its Solstice technology, which currently has applications in refrigerants, blowing agents, aerosols and solvents, and is also being evaluated for expanded use in metered dose inhalers. Since its introduction in 2011, the use of Honeywell Solstice technology has helped avoid the potential release of the equivalent of more than 326 million metric tons of carbon dioxide into the atmosphere or the carbon emissions from nearly 70 million gasoline-powered passenger vehicles per year.¹

About Honeywell
Honeywell is an integrated operating company serving a broad range of industries and geographies around the world. Our business is aligned with three powerful megatrends – automation, the future of aviation and energy transition – underpinned by our Honeywell Accelerator operating system and Honeywell Connected Enterprise integrated software platform. As a trusted partner, we help organizations solve the world's toughest, most complex challenges, providing actionable solutions and innovations through our Aerospace Technologies, Industrial Automation, Building Automation and Energy and Sustainability Solutions business segments that help make the world smarter, safer and more sustainable.  For more news and information on Honeywell, please visit www.honeywell.com/newsroom.

Media contacts:
Honeywell: Whitney Ellis, whitney.ellis@honeywell.com               

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¹ Calculations are based on actual sales of Solstice products (in lbs) from Jan 2010 through Dec 2022 and utilize the EPA GHG equivalency calculator for conversion.

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SOURCE Honeywell

What technology is Hisense integrating to reduce environmental impact in its residential air conditioner units?

Hisense is integrating Honeywell's Solstice refrigerant technology.

What is the ticker symbol for Honeywell?

The ticker symbol for Honeywell is HON.

Why is Honeywell's Solstice 454B refrigerant significant?

Honeywell's Solstice 454B offers outstanding performance in both cooling and heating with low global warming potential.

What is the recent legislative mandate regarding high-GWP hydrofluorocarbons (HFCs)?

There has been an increase in legislative mandates to reduce the use of high-GWP HFCs in response to global emphasis on addressing climate change.

How much has Honeywell invested in research and development for its Solstice technology?

Honeywell has invested more than $1 billion in research, development, and new capacity for its Solstice technology.