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Lawrence Berkeley National LaboratoryBerkeley, CA

December 21, 2007

Dr. J. Michael McQuadeSenior Vice President, Science & Technology

United Technologies Corporation

Creating Technology Innovationsfor Critical Infrastructure

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United TechnologiesBusiness units

aerospacesystemsaerospacesystems

powersolutionspowersolutions

buildingsystemsbuildingsystems

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Segment RevenuesSegment Revenues …… 60% Commercial60% Commercial 4040% Aerospace% Aerospace

28% 28% CarrierCarrier

10%10% Hamilton SundstrandHamilton Sundstrand22%22% OtisOtis23%23% Pratt & WhitneyPratt & Whitney 7%7% Sikorsky Sikorsky 10%10% UTC Fire & SecurityUTC Fire & Security

MilitaryAerospace

Commercial & Industrial

CommercialAerospace

United Technologies 2006 Revenues: $47.8 billion

Europe

United States

Asia Pacific

Other

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Willis CarrierWillis Carrier Elisha Graves OtisElisha Graves Otis Igor SikorskyIgor Sikorsky

Thomas HamiltonThomas Hamilton

Frederick RentschlerFrederick Rentschler

David SundstrandDavid Sundstrand Charles ChubbCharles Chubb Walter KiddeWalter Kidde

United Technologies A tradition of innovation

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UTC Corporate Environmental Goals

"Conservation is the fastest, quickest, cheapest, most reliable way to solve the global warming problem …" he told the approximately 300 MIT students in attendance.  “An immediate solution to the energy issues we face today is conservation, which can be achieved through greater efficiency and improved processes.”   

George David at Massachusetts Institute of Technology's Sloan School of Management; Feb. 22, 2007

2007 – 2010: 12% Absolute GHG Reduction

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UTC Support

“The lessons I bring from UTC are that we can always reduce costs and increase productivityand performance. The same is true for environmental impacts and potentially to aneven greater degree because companiesgenerally haven't worked at these as hard asthey have at costs and corporate profitability. Remember that more than 90 percent of the energy coming out of the ground is wastedand doesn't end as useful. This is the measure of what's in front of us andwhy we should be excited.”

From the remarks of George David to the World Business Council for Sustainable Development in Beijing on March 29, 2006

George David UTC Chairman and

Chief Executive Officer

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UTC Corporate Environmental Goals

2010 EH&S Goals: Factory & Operations Metrics

NonGreenhouse Gas

Emissions

20%

GreenhouseGases

(CO2 equiv.) Waste

RegulatoryAssurance

Review Score

UTC has a disciplined and proven approach to profitability and environmental responsibility

12% 10%Industrial Process

30%Non-Recycled

10% 10%

Water

Consumption Chemicals Discharged

Notice of Violation

Permit Exceedances

0 0>_

70%

Worldwide Lost Day Incidence

Rate

Worldwide Total Recordable

Incidence Rate

Safety

Target = .17

Target = .64

1010

PureComfort™ Integrated Energy Solutions

Cooling, Heating & Power (CHP)

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100

150

200

250

100 110 120 130 140 150

Evaporating temperature

Net

pow

er (

kW)

Net power

Gross power

D

esig

n po

int

R245fa

100

140

180

220

260

20 40 60 80 100 120

Condensing temperature

Eva

pora

ting

tem

pera

ture

140 160

300

R236fa

R134a

Cycleefficiencytoo low

District Heating

SenecaFalls

ChenaHot Springs

Empire Geothermal

Chena Hot Springs T-S Cycle Diagram

0

50

100

150

200

250

0.2 0.25 0.3 0.35 0.4 0.45 0.5

Entropy (R134a side) (Btu/lbm R)

Tem

pera

ture

0.22 0.225 0.23 0.235 0.24 0.245

Entropy (water side) (Btu/lbm R)

Geothermal heat source

Cooling water

R134a

AB

CD

2

1

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Lowest temperature resource producing power

PureCycle® Technology at Chena Hot Springs

Turbine / generator

CondenserEvaporator

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Market pressures on increasing performance for buildings Energy efficiency: need to go to Net Zero Energy; Security: need to improve false-alarm rates dramatically.

Current best practices for high-performance buildings Functional integration for increased efficiency.

Barriers for dramatically improved high-performance buildings Complexity, heterogeneity and emergent behavior of networked systems.

Key Points

R&D needs in Systems Technology:

1... Design processes that address complexity explicitly;

2... Modeling and analysis that is focused on dynamics;

3... Explicit representation and management of uncertainty;

4... Design methodologies for networked embedded systems;

5... Supply and demand side energy demonstrations.

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Identify opportunities and gaps

Seize opportunities via pilots

Sustain competencyengineering standard work

“Controls University”

Talent identification and acquisition

tech

nolo

gyim

plem

enta

tion

Controlconceptselection

Controldesign

and analysis

Control rapidprototyping

and verification

Dynamic modeling

200920082007

Focus: Virtual engineering = > development speed and implementation

Controls Initiative

Simulation Test

Compressor speed (Hz)

Controller InverterVapor comp.

system and heater

Box

-

Finalimplementation

1414

Energy Use In Buildings

Source: Egan report, 1998

UTC is the largest supplier to the building industry (Otis, Carrier,

UTC Fire & Security)

UTC participates in World Business Council for Sustainable Development project on energy efficiency in buildingsSource: Energy Information Agency (EIA), 2002

Does not reflect:

0.5 TkWh for pumps, CHP, site generation

1.5 TkWh for unique facility equipment

3.3 Trillion KWh

HVAC, refrigeration

Lighting

Office equipment, information technology

Water heating

1 trillion KWh= 3.4 quads

Life Cycle Energy Use in Buildings(OECD countries)

In operation

Embedded, construction,demolition and recycling

Materials transportedin construction

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Combined options estimated to save 25% primary energy with respect to

concept design at less than 7% incremental cost

Payback 4.2 years total / 2.5 years new items

Alternative Individual Savings

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

Light

ing

Daylig

htDCV

ERV

Heatin

g co

ntro

l

Coolin

g co

ntro

l

High

perf

chille

r

High

perf

window

s

roof

insu

lation

radi

ant h

eatin

g

wall in

sulat

ion

Heatin

g co

ntro

l

dayli

ghtin

g

ecoo

ling

econ

omize

r

chille

r loo

p va

r spe

ed

Shadin

g

chille

r sel

ectio

n

chille

r con

trol

chille

r sec

loop

VSD

Alternative

% P

rim

ary

En

erg

y S

avin

gs

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Green Buildings

Daylighting

Demand Controlled Ventilation

Heating and Heating Control and Insulation

Shading

Energy Recovery Ventilation

Advanced Chillers and Control

Water Recovery

Natural and Hybrid Mechanical Ventilation

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UTC Green Building ...Otis Elevator TEDA Center联合技术绿色建筑 -“泰达”奥的斯电梯中心

25% energy reduction, 4- 7% incremental cost increase

节能 25%，增加成本 4-7%

First Designated MOCGreen Factory

首个建设部认证的绿色工厂示范项目

On track for USGBC LEED rating gold

即将获得美国绿色建筑委员会颁发的“美国能源及环保先导计划”金奖

First showcase for UTC integrated systems

首个联合技术集成系统展示项目

Full occupancy scheduled for August 2007

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Decision Support Enabled Buildings

Challenges / Barriers: Trading accuracy with detection / response latency• Information volume (100’s of heterogeneous sensors, 1000’s of agents)

• Dynamically evolving situation (faults, threats and response)

• Uncertainty (inaccurate, missing sensor data, false alarms)

95% false alarm rate*95% false alarm rate*

20% of energy wasted*20% of energy wasted*““controlscontrols && mechanical glitches”mechanical glitches”

* “High Performance and Sustainable Buildings: United Technologies Corporation’s Perspective On R&D Needs in Building Automation and CommunicationSystems and Advanced Energy Technologies” A White Paper Submitted to the Office of Science and Technology Policy September 2006

Synthesis of information from data and sensor rich environments for enhanced services

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High Performance Buildings...Integration

Model-based Systems Engineering

Model-based Controlsto Shape Dynamics

Network-enabled Information & Decision

Support

Pro

duct

Mar

gin

s an

d C

usto

me

r V

alu

e

Fluid MechanicsThermodynamics People MovementControls and IT

2-3% → 25% site energy reduction

30% → 90% system efficiency

5-10% → 30% system efficiency

15% peak demand

reduction

30% response time reduction, 40% evacuation time reduction

hours secondsthousands millions

Decreasing response time scaleComplexity (number of equations)

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University UTRCUTC

Business Units

Basic Research:

Long range technology development

Applied Research:

Transfer technology to market opportunities

Product Development:Realize market opportunities

Open Innovation

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Objectives

An academic – industry – national laboratory – An academic – industry – national laboratory – building professional collaboration vehicle tobuilding professional collaboration vehicle to

create the science, people and advocacy create the science, people and advocacy needed to enable the intelligent, efficient needed to enable the intelligent, efficient buildings necessary tobuildings necessary to

achieve 90% reduction in energy achieve 90% reduction in energy consumption in new building construction consumption in new building construction and >50% energy consumption in and >50% energy consumption in commercially viable retrofits by 2030commercially viable retrofits by 2030

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Objectives

Pre-competitive Broad technology based – sensors to systems of

systems Robust, controls-based systems engineering approach Infrastructure to enable large scale data flow and

management User and demonstration capabilities Training – students, professionals, policy makers Scale

Today – a path forward and next (i.e. Q1) stepsToday – a path forward and next (i.e. Q1) steps