Innovative project to generate $7 million in income and decrease dependency on flares

MILWAUKEE – (February 6, 2007) – The City of Little Rock, Ark. has recently signed a $7 million performance contract with Johnson Controls, Inc. to develop a methane gas recovery system for the city’s landfill and maintain the solution over the life of the contract.

The project will benefit residents as well as the city by generating a consistent stream of new income and considerably decreasing Little Rock’s reliance on a flare that is traditionally used to burn the methane. By collecting, compressing and selling the methane to a local business, the city will be mitigating harmful landfill gas emissions in accordance with the Environmental Protection Agency’s (EPA) standards while implementing a sustainable solution.

Once installation of the recovery system is complete, Little Rock expects to collect more than 90,000 MMBTUs of usable energy from landfill gas annually, which will then be made available for purchase by an area manufacturer. The performance contract with Johnson Controls guarantees that the recovery system will consistently maintain operational efficiency. Little Rock expects to earn on average more than $400,000 annually in landfill methane gas sales, and potentially totaling more than $7 million in revenue over the 15 year term of the contract.

“As a result of this performance contract with Johnson Controls, Little Rock will avoid more than $1 million in capitol expenditures while reducing our impact on the environment,” said Bruce Moore, city manager of the City of Little Rock. “We are excited to see the economic and environmental benefits come to life in 2007.”

A performance contract pays over time for improvements made now through increased energy and operational savings. This allows the city to upgrade aging infrastructure with minimal impact on city budgets.

Currently, the City of Little Rock landfill collects residents’ solid wastes, which over time produce methane gas. This gas is traditionally burned off by large flares up to 20 feet in height and visible from the surrounding area. The Johnson Controls recovery solution will collect the methane gas produced by the landfill, then compress and transport the gas for sale to local businesses. As a result, this system will reduce the city’s dependence on a flare while also utilizing a naturally-occurring resource that otherwise would be wasted. Additionally, Little Rock can expect to save nearly $70,000 annually in avoided operations, maintenance and energy costs associated with operating the collection system and flare.

“This project is a great example of what can happen when strong local leadership combines with innovative solutions,” said Joy Clarke-Holmes, director of public sector markets, Johnson Controls. “Together, the City of Little Rock, Johnson Controls and the EPA have developed a long-term plan for success.”

“In the past, large cities have led the curve in executing innovative, solutions-based projects," said Chad Leatherwood, Landfill Methane Outreach Program, EPA. "Little Rock is a shining example of a mid-sized city taking the lead and showing communities throughout America how innovation can be a part of municipal planning.”

Johnson Controls plans to break ground in February and the project is scheduled to be completed in October of 2007.

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 (NYSE: JCI) 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.

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