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The Associated Press June 16, 2010, 2:03PM ET

Army awards $4.6 M contract to Honeywell

Honeywell International Inc. said Wednesday the U.S. Army has awarded a $4.6 million contract to test and demonstrate its Micro-Grid power distribution system.

The technology is being developed by Honeywell Aerospace and can use solar power and other sources of electricity. Honeywell said it could reduce fossil fuel consumption at remote locations and enable the Army to decrease the number and size of generators it needs.

The U.S. Army Tank Automotive Research Development Engineering Center awarded the cost-plus fixed fee contract. The delivery, testing and demonstration will take place at Wheeler Air Base in Hawaii.

Shares of Honeywell International, which is based in Morris Township, N.J., fell 14 cents to $42.90 in Wednesday afternoon trading, while broader trading indexes rose slightly.

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