Under the terms of the contract, the company will decentralize FAMU’s obsolete central steam plant heating system.

In 2009, the company had delivered the $2.4m first phase which saw the introduction of energy efficiency measures at the school.

FAMU president James H Ammons said its first project with Siemens gave it the opportunity to see firsthand the financial and operational effectiveness of performance contracting.

"We are moving forward with Phase 2 -a project that will yield tremendous energy savings and support campus sustainability measures far into the future," said Ammons.

Siemens Building Technologies vice president and building automation business unit lead Dave Hopping said, "On many levels Siemens worked with the FAMU facilities personnel to help them understand that other universities with similar campus profiles in the southern United States have successfully decentralized their steam systems."

Under the 18-month project, the company will undertake many facility infrastructure improvements including the steam system infrastructure renovation, an advanced solar-thermal heating system for the swimming pool, central chilled water and steam plant improvements.

It will also include building automation improvements and ventilation and dehumidification improvements for the library.

Benefits will see the natural gas consumption will be reduced 42.6% which represents an annual equivalent savings of $706,204 while electricity consumption will be lowered by 12.1% equivalent to $563,909 in cost savings.

Siemens Infrastructure & Cities Sector offers sustainable technologies for metropolitan areas and their infrastructures.

The Siemens Building Technologies Division offers services for building automation, heating, ventilation and air conditioning , fire protection and security.