Sustainable Commissioning Concepts, Energy, and...

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Genzyme Sustainability Programs 2013

Sustainable Commissioning Concepts, Energy,

and Carbon Reduction Interrelationship with

Asset Management and Reliability

Presented by

Energy Program Director

Steven Driver Ph.D.

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Genzyme Sustainability Programs Introduction

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Introduction

Genzyme / Sanofi History and Products

Energy Program Structure and Goals

Sustainable Commissioning Process Overview

Validating the Concept

Case study 1 - OCx/RCx/A – (177k s.f. research building)

Case study 2 - OCx/RCx/A – (290k s.f. office building)

Case study 3 - OCx/RCx/A – (137k office/mfg facility)

Case study 4 – OCx/RCx/A – (3000 Ton chilled water plant)

Program Financial Portfolio Performance

Corporate Achievements

Linking Sustainable Commissioning to asset care and reliability

Questions / Discussion

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Jannan Multiple Sclerosis USA

Our mission is to discover

and deliver transformative

therapies for patients with

rare and special unmet

medical needs, providing

hope where there was none

before.

Genzyme / Sanofi History and Products

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Focused on rare diseases and

multiple sclerosis

7 major marketed products

8,000 employees worldwide

Founded in 1981 and pioneered

treatments for rare diseases

David Meeker, MD, CEO

Genzyme / Sanofi History and Products About Genzyme

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Genzyme / Sanofi History and Products About Sanofi

• A global healthcare leader

• A diversified offering of medicines, consumer healthcare products, generics

and animal health

• A world leader in human vaccines

• A broad and balanced presence in both traditional and emerging markets

• More than 110,000 employees in 100 countries

• 2012 net sales: ~ €34.9 billion

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Genzyme / Sanofi History and Products Manufacturing Facilities

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Genzyme Sustainability Programs

Energy Program Structure

Energy is a simple message for us, we know that:

It costs a lot of money

Our industry uses a lot of it

Our consumption directly impacts our environment

There is a tremendous opportunity for improvement

Policing energy waste requires detailed investigations

So what are we doing about it?

Commissioning our operations in a new sustainable way for

higher efficiency

Giving appropriate consideration to energy efficiency

in new facilities, utilities, and equipment

Changing behaviors towards energy (culture)

Stopping energy waste to free up investment capital

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Genzyme Sustainability Programs Energy Program Structure and Goals

In 2007-2012 Genzyme carbon reduction target was 25% based on

Revenue which was met early in 2011

The new Sanofi carbon reduction target Genzyme is now following was

set in 2010 to reduce carbon by 20% by 2020 based on absolute energy

reduction values

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Genzyme Sustainability Programs Energy Program Structure and Goals

Mission:

To partner with our sites to procure and use energy at Genzyme in an

efficient, cost effective, and environmentally responsible way

Demand (Steven Driver)

Greenhouse Gas (Jeff Holmes)

Supply (Brenda Henderson)

Market Intelligence

Strategic Sourcing

Leverage Scale

Competitive Pricing

Reduced Energy Cost

Commodity Quality

Eliminate Waste

Benchmark Metrics

Reduce Risk

Measure Carbon

Footprint

Engage Employees

• Achieve GHG Target

• Environmental Leader

• Reduced Energy

• Increased Reliability

• Reduced Operating Cost

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Genzyme Energy

Sustainability

Charter (GEST)

(5 Members)

Supply

Brenda Henderson

Contract Negotiation

Demand

Steven Driver

ECM Implementation at

participating sites

Greenhouse Gas

Jeff Holmes

Carbon Accounting

Organizational

communication

through centralized

network tools

and events

The GEST Energy Charter meets quarterly to discuss goals, objectives,

accomplishments, performance, and potential barriers

The program is governed by an

energy sustainability charter

endorsed by Genzyme senior

management. The sponsored

program insures site carbon KPIs

are being met to comply with

corporate GHG targets.

The charter is currently being

converted to an energy management

system policy (EnMS)

5 Member Charter

- (1) Finance

- (2) Engineering

- (1) Procurement

- (1) Environmental

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The global energy program maintains an annual budget to oversee financial

and carbon reduction performance, assist sites with energy assessments,

retroactive commissioning, and ongoing commissioning activities

Participating sites finance the implementation of energy conservation

measures. To meet the corporate target of 2% reduction, business units

energy consumption is converted to GHG emissions

To remediate one MTCO2, on average the median cost is $750. Once the

carbon reduction metric is established, it is multiplied by the average cost

to derive the minimum investment required for carbon reduction

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Genzyme Sustainability Programs Sustainable Commissioning Process Overview

In 2007 there were still many unanswered questions around

commissioning:

• In a recent study of 60 commercial buildings conducted by the

Oregon Office of Energy, half suffered from control problems

such as malfunctioning equipment.

• According to Torcellini and Pless (2006), the most frequently

cited barrier to widespread use of building commissioning is the

decision-makers' uncertainty about its cost-effectiveness.

• Gordon (2007) claimed that using computer technology for energy

monitoring allows maintenance workers to be called only when

something requires repair.

• Lee et al. (2007) claimed in a recent study of 60 commercial

buildings that over 50% had control problems, 40% had problems

with HVAC equipment, and 33% had sensors that were not operating

correctly.

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Annual energy auditing

(human intelligence to conduct operational interviews, functional testing,

energy modeling)

Continuous commissioning SM (OCx)

(artificial intelligence is used to collect fault data)

Retroactive commissioning (RCx)

(collect generate fault data from human intelligence)

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Only until now are we beginning to understand energy

consumption must be managed by a sustainable process.

A simple and sustainable equation for

Sustainable Commissioning:

SC = [ (Energy O&F Auditing )+( RCx )+( OCx) ]

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(Audit) Operational and Functional: we are conducting annual energy audits

interviewing building personnel and operations to understand cultural

awareness around energy, operational inefficiencies, and recent changes. We

are performing in-field tests (infrared thermograph, lighting levels, and air

flow readings), and constructing energy models where feasible.

(RCx) Retro-commissioning: concurrent with the energy audit, we conduct

retro-commissioning testing of building MEP systems and any suspected

high energy consumers annually to insure peak efficiency.

Vane

annometer Light Meter

Infrared

Thermograph

Combustion

Analysis Amp Probe


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For buildings without automation: Construct an energy model and calibrate to existing energy bills to analyze demand and understand where energy is being consumed. Identified ECM’s are profiled and parametric runs completed using different alternatives to understand financial impact on making changes to building operations.

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(OCx) - Ongoing Commissioning: we collect data using the building management system to analyze and report operational abnormalities in terms of energy loss, cost, and GHG emissions on a consistent basis.

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Putting the Sustainable Commissioning

process into practice over the last 3 years we

have learned:

18-38% cost savings resulted

1 year ROI’s with 5 year IRR’s ranging

from 85% to 185% !

Substantial reduction in carbon emissions

Increased asset life and reliability

Prevention of operational inefficiencies

and operations downtime

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So why aren’t more building owners

commissioning their buildings this way?

Still don’t understand the

terminology (OCx, RCx, MBCx)

Don’t understand value proposition

of engaging multiple services

Concerned about cost of services

Fear of inadequate return on investment

Tenants pays the utility bills

Lack of financial knowledge as

it relates to IRR, NPV, LCC

Uncertainty around results and lack

of case studies

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Genzyme Sustainability Programs Validating the Concept

In a 2010 study, 32 types of

energy faults which occur in

buildings across the US were

analyzed in 80 buildings

comparing OCx and RCx.

The results were a 58%

increase in fault detection for

OCx and 26% increase for

RCx if technologies are

integrated.

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Lighting levels too high

Lack of lighting sensors

Sequence of operations not optimized for energy

Air change rates exceed classification requirements

Humidity and temperature control parameters (not required)

Unnecessary HVAC in mechanical spaces

Broken/out of calibration controls

Free cooling not being utilized

Overuse of chemical treatment

Lack of insulation on piping

Building envelope leaks

Unnecessary equipment running

Thermostatic dead band ranges

too narrow

Simultaneous heating and cooling

Compressed air and steam usages (steam trap failure)

Lacking use of grey water

Mechanical equipment upgrades required

Less than ideal boiler efficiencies / high stack temps

High air filtration requirements

Change culture and how occupants use energy

Fume hood sashes open when not in use

Inadequate flow rates

Common issues found in the 4 case studies

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It took three years to validate the Sustainable Commissioning

concept. Now four case studies have been completed on a

science laboratory, manufacturing facility, green concept office,

and a critical manufacturing support central chilled water plant.

Annual energy savings

up to $296,149!

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Genzyme Sustainability Programs (Case Study 1 – 177k s.f. Office / Laboratory)

In 2011 Sustainable Commissioning

was employed in a 177k s.f. LEED

rated gold building approximately 6

years old.

OCx identified $111,786 in energy

savings and RCx identified $ 75,779

yielding a total opportunity of

$ 187,565.

Upon implementation, 398 metric tons

of carbon were saved.

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Genzyme Sustainability Programs (Case Study 1 – 177k s.f. Office / Laboratory)

Financial Results (38% Savings on Annual Energy Spend)

Annual Energy Spend $ 493,028 (Gas / Electric)

Energy Savings $ 187,565 from SC

RCx / Audit Cost $ 24,000

OCx Cost $ 118,794

ECM Controls work $ 20,394

Sub Total Invested $ 163,188

Utility Rebate - $ 47,043

Total Cost $ 116,145

5 Year Net Present Value $ 685,120

Internal Rate of Return 160%

ROI with Utility Rebate $ (116,145/$187,565) = 7.5 Month Return ROI no Utility Rebate $ (163,188/$187,565) = 10.4 Months

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Genzyme Sustainability Programs (Case Study 2 – 290k s.f. Green Concept Office Building)

In 2009, the Sustainable Commissioning concept was employed in a 290k s.f. LEED rated platinum building approximately 5 years old at the time.

Identified $403,957 in savings with OCx over 3 years of which $218,978 has been implemented.

To date, 864 metric tons of carbon has been saved.

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Three year electrical consumption trend (550 - 4 pipe fan coils + 2 - 10k CFM OA units)

Three year steam consumption trend (2-450 ton steam absorption chillers + heat)

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One ECM was to widen thermostat dead bands for occupied times. There was no reported adverse impact to employee comfort and the result was $100,237 per year, 407 tons carbon!

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Financial Results (18% savings on 3 year average energy spend)

3 Year average annual Energy Spend $ 1,222,562 (Steam / Electric)

Actual Savings from Baseline Year $ 656,936 (Three year savings)

Average Savings Confirmed $ 218,978 (yearly average)

3 year RCx Audit Cost + Install $ 110,000 (Re-commission systems)

OCx cost $ 46,000

Controls cost $ 65,000

Total $ 221,000



Return on Investment 7.2 months

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Genzyme Sustainability Programs (Case Study 3 – 137k s.f. Office / Lab / Manufacturing)

In 2012 Sustainable Commissioning was proposed for two joined buildings (1 lab & 1 office) total of 137k s.f.

The office building is combination LEED gold and platinum certified.

Identified $267,892 in savings with RCx and OCx yielding a total savings of $296,149.

Upon implementation, 1,018 metric tons of carbon will be saved.

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Genzyme Sustainability Programs (Case Study 3 – 137k s.f. Office / Lab / Manufacturing)


Annual Energy Spend Year 1 $ 1,403,389 (Steam / Electric)

Identified Savings from Baseline Year $ 296,149

RCx / Audit Cost / Implementation $ 45,110

OCx Cost (Office building only) $ 13,059

ECM Implementation cost $ 296,149

Total $ 354,318



Return on Investment 1.2 years (with no incentives)

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Genzyme Sustainability Programs (Case Study 3 – 137k s.f. Office / Lab / Manufacturing

(Functional and Operational Audit + RCx Findings)

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Genzyme Sustainability Programs (Case Study 4 – 3000 Ton Chilled Water System)

In 2012 Sustainable Commissioning was preformed on a central utility building located in Framingham Massachusetts.

Identified was $110k in annual savings (880 kwh) applying OCx and RCx principles to correct issues. Estimated carbon reduction is > 560 metric tons.

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Issues identified:

Excessive secondary loop flow rate and artificially low return-water temperatures

Campus chilled water loop set at 38 degrees to feed one small piece of equipment when the remaining campus could run on 42 degree water

Small manual end-of-loop bypasses that contributed to the excess flow and low return-water temperatures

There was a building on the campus where the original primary-secondary pumping arrangement was left in place with an unnecessary 25-hp building primary pump operating

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Temperature rise in loop was only 2⁰F,

while the building secondary loops used

just a fraction of flow rate preventing

each chiller from fully operating at its

available capacity

Resulting flow rate in the CUB

secondary loop always exceeded the

primary flow rate of a single chiller so

the chiller staging program in the BMS

then forced the operation of two chillers

in an effort to maintain positive flow in

the de-coupler

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Water flow before and after central plant modifications

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Genzyme Sustainability Programs (Case Study 3 – 137k s.f. Office / Lab / Manufacturing

(Functional and Operational Audit + RCx Findings)


RCx + Engineering Cost $ 17,600

OCx Cost $ 34,552

Project Cost $ 241,600

Rebate from Utility $ - 170,200

Total Cost $ 123,552



Return on Investment 1.1 years (with incentives)

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Genzyme Sustainability Programs Program Financial Portfolio Performance

Currently there is a 10 month average return on investment for 155 energy

projects Internationally including rebates. These investments represent a 5

year net present value (NPV) of $ 36,276,77 with an internal rate of return

(IRR) 88% @ 7.5% hurdle rate.

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Genzyme Sustainability Programs Program Financial Portfolio Performance

The current reduction in energy spend is

trending 7% on an $18M annual energy

spend.

Not only is the $1.2M free for other

investments, but roughly saved 4000

MTCO2 from being omitted to our

environment! Carbon or Cash?

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Genzyme Sustainability Programs Corporate Achievements

Engaging in commissioning

programs led Genzyme to

receive the 2012 EPA Climate

Leaders award for effective

green house gas management

and reducing carbon emissions.

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Currently have 10 buildings connected to OCx

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In 2007-09 the energy program saved

3,130 MTCO2


6,072 MTCO2


8,033 MTCO2 to date

The savings is cumulative each year!

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In 2011, a total of 79 small sized energy projects were completed with an overall internal rate of return (IRR) of 278%. These projects provided a 3.7 month payback and a Net Present Value (NPV) of $9.1M

In 2012, a total of 35 medium sized energy projects were completed with an overall IRR of 254% The one time investment of $570K was paid back to our company in just 11 months with a NPV of $2.6M.

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Genzyme Sustainability Programs Linking energy management to asset care and reliability

GHG Emissions

Reduction

Increased

Reliability

Reduced Energy

Consumption

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Reliability:

Sustainable Commissioning is an ongoing process which

assists in the identification of abnormalities found in current

operations

Benefits:

- Avoids costly downtime

- Avoids deviations

- Avoids product loss

- Increases reliability for critical support systems

- Saves money extending asset life and deferring costly capital

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Why reliability?

Availability

Efficiency

Performance

Quality

Set-up

Breakdowns

Reduced Rate

Scrap/ Rework

Start up Loss

Idle/Minor stop

Lo

st T

ime

Lo

st S

pe

ed

Lo

st U

nits

Theoretical Max

Current Capacity

Containing and Controlling Loss

Moves the bar

Everything we do must move

the line

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Understanding energy consumption in context of reliability

applying concepts of Sustainable Commissioning:

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Point where

failure starts

to occur

Changes in Vibration P-

F interval 1-9 months

Wear Debris in oil P-F

interval 1-6 months

Audible noise P-F

interval 1-4 weeks

P1 P2

P5

P6

F

IR Thermograph P-F

interval 3-12 weeks

P3

P = Potential Failure

F = Failure

Quantitative PM P-F

Interval 5-8 weeks

P4

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Critical manufacturing air handler simultaneous H&C fault

Abnormal valve operation and excessive wear

Threat to operations (potential recordable deviation and loss of productivity

in space and product)

$ 55k in energy being lost

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What is the cost of risk if we don’t fix our identified

operational issues?

Loss of product

Downtime

FDA recordable event

Production loss work time

Increase cost per unit of product

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Why take an integrated approach to energy, asset care, and

reliability?

Gain efficiency through articulation of common

program attributes

Ensure continuous improvement of all our programs

Deliver highest level of value to our sites

Drive improved reliability and reduce energy costs

Increase life expectancy of our assets

Reduce impact on our environment

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When properly metered,

an enterprise solution can

assist in the analysis of

electrical energy usage

allowing a better

understanding of where

peak demand conditions

exist

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Genzyme Sustainability Programs Conclusion

Through research and practice, we have learned that combining

ongoing monitoring, retroactive commissioning, and energy auditing

we obtain:

- lower operating costs and carbon emissions

- continuous reliability and risk mitigation

- less than a 1 year ROI on most ECM's

- increased awareness to the condition of assets

- identification of new financial opportunities

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With climate change, we

don’t have all the pieces to

the puzzle, however, we can

lessen the effects on our

environment by making

smarter choices in how we

operate our buildings and

educate employees.

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