LEADING THE NEXT GENERATION OF DRUG DELIVERY ALZA Landfill Gas Case Study May 10, 2007 1 1 Case Study #1 2 Case Study #2 Landfill Gas Source: J&J WWERE 3 What: Reduce CO2 using Kyoto Protocol standards Japan, Canada, EU implementing How: Implement best energy use practices Credo clause ALZA’s LFG Project is a best practice 4 CO2 Reduction Goals Kyoto Protocol –1990 is base year –4% reduction in 2005, 7% in 2010 ALZA needs to reduce –22.3 million pounds per year CO2 –75% reduction from 2006 levels ALZA demand –4 to 5 mW average –7 to 8 mW peak 5 Energy Management Best Practices Ten stages 245 separate action items 5 to 10 year implementation, but ALZA got 3.5 ALZA is 100% done 6 Evaluation of alternatives Pathway Potential Benefit Conservation Full implemented, but only saves about 10% Cogeneration Inadequate demand for waste heat Renewable fuels Evaluate (look close if located next to landfill) Clean Power Weak economics ALZA lacks roof space Carbon trading and sequestration 7 Can buy 100% of CO2 reduction goal for less than $15,000 per year Landfill Gas (LFG) Summary Composition: CO2 and CH4, 50:50 Uncontrollable byproduct of anaerobic digestion of trash Combustible greenhouse gas – Capture and burning is the standard control method Renewable energy source – PG&E has self generation incentive program (SGIP) grants for renewables Established technology – 300+ LFG projects in US currently in operation – US EPA Landfill Methane Outreach Program (LMOP) 8 ALZA Project Summary Scope – Build pipeline to transport landfill gas from golf course to M1/M5, M3, and ALZA Plaza – Install three - 1 mW engines, fuel them with landfill gas, produce electricity and hot water (enough to power 1,500 homes) Project – Completion: June 2006 – Life: 15 years+ Investment Summary – Total Cost – PG&E Grant – Net investment 9 $11.0 million $3.1 million $7.9 million Aerial View Club House Compressor Station Shoreline Amphitheater ALZA Plaza 10 1 Fr ee wa y 10 M3 M1/M5 1 mW Jenbacher Engine 11 12 13 14 15 16 17 18 19 20 Project Benefits (15 year average data) Environmental/CO2 reduction –16 million lb/year –72% of ALZA’s goal –50% reduction from 2006 –Equivalent to removing 1,500 cars from the road. Community –Model Public/Private Partnership with local government Financial –15+% ROI 21 Milestones $11 million approved in 135 days. –Facilities –Finance –WWERE Environmental approvals completed in 180 days. –City of Mountain View –BAAQMD –Santa Clara Valley Water District 22 Team Recognition City of Mountain View –City Council, Technology Council –Public Works, City Attorney, City Manager PG&E –SGIP, Generation Interconnection Services ALZA –Facilities, EH&S, Purchasing, Finance, Legal –SCS Engineers, Dome Construction –Heller Ehrman, Environ J&J –WWERE, Legal, Risk Management 23 Performance to Date 24 Comments and Questions 25