Honda and Climate Energy Begin Retail Sales of freewatt™ Micro-CHP Home Heating and Power System

Revolutionary System Reduces Energy Costs, Fuel Consumption and Greenhouse Gas Emissions

American Honda Motor Co., Inc. and Climate Energy, LLC announced today the official start of retail sales of freewatt™, their collaborative Micro-sized Combined Heat and Power (Micro-CHP) cogeneration system for homes, which features advanced and highly efficient energy management technologies.

The freewatt™ Micro-CHP system is comprised of an MCHP cogeneration unit developed by Honda, which is paired with a furnace or boiler produced by Climate Energy. This system provides heat for the home with the added benefit of electricity production. The ultra-quiet MCHP unit produces 3.26 kilowatts of heat and 1.2 kilowatts of electric power. Further, it allows homeowners to reduce their utility bills and curb carbon dioxide emissions while improving overall energy efficiency and comfort.

In relation to energy costs, Climate Energy test data has shown that when the freewatt™ Micro-CHP system replaces a typical 80% efficiency home heating system, homeowners can realize an average of 30% in energy cost savings.

The freewatt system produces electric power as a by-product of its heating functionality. The electric power produced displaces electricity that consumers would otherwise purchase from the local electric utility, saving $500 to $1000 per year on their electric bill. An additional unique financial savings benefit of utilizing the freewatt system is realized through the process of net metering. In states where legislated, net metering allows homeowners to literally sell unused electric power back to the power grid in their community, providing additional savings.
In addition, the system produces 30% less carbon dioxide emissions than a conventional heating system with electricity provided from the grid. This allows homeowners to take an active role in the effort to reduce greenhouse gases.

Comfort is enhanced due to the system's ability to provide constant and extremely quiet circulation of heated air. This produces more uniform and comfortable temperatures in the home without running noisy blowers at high speeds.

Initial sales of the heat and power units will be targeted at customers living in the Northeastern United States in conjunction with select local utility providers.

This is due to the cold climate and high heating demand in the region which allows the system to provide the greatest benefit. The freewatt™ Micro-CHP systems will only be available through certified, trained, and authorized Climate Energy installation professionals.

"It is very gratifying to be a part of bringing this new and exciting home heating technology to consumers," said Steve Bailey, vice president of power equipment for American Honda. "Honda is proud to maintain our commitment to the development and introduction of advanced environmentally responsible technologies such as the MCHP system."

Climate Energy and Honda plan to gradually expand production and sales of the freewatt™ Micro-CHP system and plan to introduce the system to other cold weather climates in the U.S. in the future. The units will be assembled domestically in the United States with components supplied by both companies. Currently, a similar version of an MCHP system is retailed in Japan, with over 45,000 units sold to date since its introduction in 2003.

Honda is the world's preeminent manufacturer of engines for automobiles, motorcycles and power equipment, selling more than 21 million units globally in 2006. Honda engines are characterized by the same clean, quiet, fuel-efficient technology that is the cornerstone of the company's unrivaled reputation for durability, reliability and quality.

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