Genzyme Sustainability Programs 2012 March 19, 2012 Erik Familial Hypercholesterolemia USA www.genzyme.com | Genzyme Sustainability Programs 2012 SMRP Pharmaceutical & Biotech SIG (Special Interest Group) Interrelationships between Energy, Asset Care, and Reliability Steven Driver Ph.D. Global Energy Demand Manager March 19, 2012 Genzyme Sustainability Programs Presentation Overview 3 • Genzyme History • Energy Program Structure • Program Performance • Sustainable Commissioning (SC) Concept − Retroactive Commissioning − Ongoing Monitoring − Annual Energy Auditing − Energy Modeling • Ongoing and Retroactive Commissioning Research • OCx/RCx Case study 1 – (177k s.f. research building) • OCx/RCx Case study 2 – (290k s.f. office building) • Linking Energy Management to Asset Care and Reliability Genzyme Sustainability Programs History • Genzyme is a biotechnology company based in Cambridge Massachusetts • • • • • Specialization in treating rare genetic diseases Company was founded in 1981 to meet unmet medical needs 10,000 employees globally Manufacturing sites in US, UK, IRL, BEL, and FR. Recently acquired by Sanofi (100,000 employees) Genzyme Sustainability Programs Energy and Sustainability Program Structure Mission: To partner with sites to procure and use energy at Genzyme in an efficient, cost effective, and environmentally responsible way Market Intelligence Strategic Sourcing Leverage Scale Eliminate Waste Benchmark Metrics Reduce Risk Measure Carbon Footprint Engage Employees Supply (Directed by Brenda Henderson) Demand (Directed by Steven Driver) Greenhouse Gas (Directed by Jeff Holmes) Competitive Pricing Reduced Energy Cost Commodity Quality • Reduced Energy • Increased Reliability • Reduced Operating Cost • Achieve GHG Target • Environmental Leader Genzyme Sustainability Programs Environmental Target Received 2012 EPA Climate Leaders award for effective green house gas management and reducing carbon emissions last week in Ft. Lauderdale Florida Genzyme Sustainability Programs Energy Program Results Saved 3130 MTCO2 from 2007-09 Saved 6072 MTCO2 from 2009 to present due to sustainable commissioning practices and Implementation of 79 energy conservation projects Achieved with the program last year a 278% internal rate of return with a 3 ½ month payback on investment resulting in a 5 yr NPV of $9.1M on a 1.4m investment 7 Genzyme Sustainability Programs How did we do it? • • Formed a focused team in 2007 (Supply, Demand, GHG) • Obtained 1.9m in financing to implement ECM’s with a 1 year or less return on investment • • Aggressively pursued and completed 79 energy projects Conducted ASHRAE level 1 energy audits all major energy consuming sites Combined energy auditing, modeling, retroactive and ongoing commissioning into one service Genzyme Sustainability Programs How did we do it? • Allocated funding to sites for ECM engineering, controls, reprogramming, and addressing functional issues • Held weekly teleconferences with our sites to review progress, schedule, budget, and M&V of ECM’s • Measured savings through actual energy usage, conservative engineering calculations, and metering • Aggressively pursued utility rebates Genzyme Sustainability Programs International common theme ECM’s • • • Lighting levels too high • Air change rates beyond EU classification requirements • Humidity and temperature control parameters (not required) Lack of lighting sensors Sequence of operations not optimized for energy • Unnecessary HVAC in mechanical spaces • • • Broken/out of calibration controls Free cooling not being utilized Strategic Demand Control • Thermostatic dead band ranges too narrow • • Simultaneous heating and cooling • • • • Lacking use of grey water High purity water and steam usages (steam trap failure) Mechanical equipment upgrades Less than ideal boiler efficiencies High air filtration requirements Sustainable Commissioning Concept Combining energy auditing, RCx, OCx • Annual energy auditing (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 observations) Sustainable Commissioning Concept Annual functional and operational auditing The energy assessment team consists of 4 board certified energy professionals trained in energy auditing and energy management with a focus on retroactive commissioning. Energy Audit Director: Steven Driver, Ph.D, CEA, CEM Certified Energy Auditor, Certified Energy Manager Multi-Discipline Energy Auditor: Jennifer Jones, CEA Certified Energy Auditor Mechanical Energy Auditor: Jeffery Fong CEA, CEM Certified Energy Auditor, Certified Energy Manager Electrical Energy Auditor: Tim Rossini CEA, CEM, LEED AP Certified Energy Auditor, Certified Energy Manager Sustainable Commissioning Concept Annual functional and operational auditing Request for Information Conduct Assessment Build Energy Model Obtain utility bills, square footage, usage, hours, location, staff to assist in audit, contact info, develop schedule Kick off meeting, walk-through, functional testing (RCx), operational interviews, exit presentation Survey, measure, input building into Equest and validate to energy bills Generate Report Create final report, estimate costs for ECM’s, savings, and ROI, IRR, NPV – use energy model Present Findings Present finding to site management in form of ppt presentation Conduct Workshop Return to site to rank ECMS (ROI, quick, simple, feasible Track Implementation of ECMs Add high priority ECM’s to international tracking matrix, conduct weekly meetings Re-Assess Return to site for re-assessment (functional test annually RCx). Implement OCx whenever feasible. Sustainable Commissioning Concept Functional and operational auditing • In-field instrumentation used: − Infrared thermograph − Amp Probes − Lighting level analysis − Vane Annometer − Combustion analysis − Magnehelic gages Vaneannometer Infrared thermograph Magnehelic Gauge Amp Probe Light Meter Combustion Analysis Sustainable Commissioning Concept Functional and operational auditing Build 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 energy Sustainable Commissioning Concept Combining energy auditing, RCx, OCx Sustainable Commissioning Concept Combining energy auditing, RCx, OCx The process must become sustainable (Annual Energy Auditing) + (Retroactive Commissioning) + (Ongoing Monitoring) + (Energy Modeling) When is it time for a tune up? Sustainable Commissioning Concept Combining energy auditing, RCx, OCx 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. Sustainable Commissioning Concept Two year study of RCx and Ongoing Monitoring A study was needed to understand the benefits of commissioning. From 2008-2010 fault detection rates were analyzed in 80 buildings across the US (40 Ocx, 40 Rcx) 100k s.f. in size, mixed use (lab, office, retail, university). The result was a 58% increase in fault detection for ongoing monitoring and 26% increase for RCx if the two technologies are combined. Sustainable Commissioning Concept 32 common faults were universal throughout the 80 buildings 1 Discharge / Return temperature fault 2 Discharge / Exhaust pressure / static flow 3 Economizer / Outdoor Exhaust Damper Fault 4 Simultaneous heating and cooling 5 Return / Space Air change rate under / over 6 Space temperature fault 7 Fan Cycling / Damper Oscillation 8 Air balancing / Leaking 9 Visual Thermostat in wrong location 10 Visual Deflection / Vibration / Overheating/Binding 11 Relative Humidification Fault 12 Visual improper valve / damper position 13 Pump / Valve / Oscillation Cycling / Leak bye 14 Water / Steam temperature 15 Water / Steam Pressure 16 Water / Steam flow 17 Water / Steam leaks 18 Pneumatic pressure (valve / damper) 19 Fan / Valve Signal Oscillation / Unstable 20 Meter calibration 21 Sensor / Switch / Signal calibration / Low voltage 22 Sensor / switch fault / Controller Flat line 23 Smoke / Hood / Air filter Alarms 24 Envelope leaks / Building Pressurization 25 Visual Observations (incorrect installation, damage, drainage, missing equipment) 26 Equipment Accessibility Issues / Housekeeping 27 Equipment Performance / VFD Control/Status/Fault 28 Runtime / Overridden in hand position 29 Engineering issue (over/undersized) 30 Incorrect labeling / Documentation Conflict 31 Sequence Optimization / Tuning / Programming 32 Field/BMS Issue (reversed or incorrect wiring) Sustainable Commissioning Concept Energy savings from ongoing and retroactive commissioning Sustainable Commissioning Concept Combining ongoing monitoring and RCx concurrently (Case Study 1) In 2011, RCx and RCx were employed concurrently in a LEED rated gold building approximately 6 years old. Energy opportunities identified with corresponding fault number from previous slide: • Economizer malfunction (3) • Scheduling of return fans (31) • Discharge air temperature (1) • VAV box turn-down ratios (27) • CO2 sensor calibration (21) • CW Valve leak bye (13) • Simultaneous heating and cooling (4) • Space temperature faults (6) • Humidification (11) • Occupancy Schedules (31) Sustainable Commissioning Concept Combining ongoing monitoring and RCx concurrently (Case Study 1) Financial results: Description ENE Controls Ongoing Commissioning Retroactive Commissioning Rebates Total Invested Cost $20,394 $60,400 $24,000 -$54,257 $50,537 Gas $8,744 $32,000 Savings Elect $69,818 $45,500 Total $78,562 $77,500 $156,062 Financial Analysis Parameters USD 2011 Items Frequency Antispated Cash Flow half first year Implementation cost Net Cash Flows one time Cash flows for ECM IRR Cash flows for program IRR NPV (at 10.67%) Payback (months) IRR of program $550,433 3.9 309% 2011 78,031 2012 2013 2014 2015 2016 0 0 0 0 0 (50,537) 27,494 0 156,062 0 156,062 0 156,062 0 156,062 0 156,062 (50,537) (50,537) 156,062 156,062 156,062 156,062 156,062 156,062 156,062 156,062 156,062 156,062 Sustainable Commissioning Concept Combining ongoing monitoring and RCx concurrently (Case Study 1) 49 Science Center - additional issue identified through functional energy audit: Clogged reheat coil: Fan deadheads at 4.25 hp while normal operation is 3.5 hp. Energy Charge Demand Charge HPsaved : 0.750 HPsaved : 0.750 kW: 0.560 kW: 0.560 Utility Rate ($/kW*yr): 0.126 Demand Utility Rate($/kW*mo): 19.720 Operating Hrs.: 8760.000 Operating months.: 12.000 Operating Savings ($/yr): 617.554 Demand Savings ($/yr): 132.400 For SF-7 & SF-8: 1235.107 For SF-7 & SF-8: 264.800 Total $/yr. saved: 1499.908 This is why we need to audit annually for energy. Sustainable Commissioning Concept Ongoing monitoring (Case Study 2) • Identified 23 opportunities at Genzyme Center, Cambridge (LEED Platinum) • $403,957 savings identified since OCx began in 2009, $259,137 implemented • CO2 savings implemented: 803 Metric Tons Sustainable Commissioning Concept Ongoing monitoring (Case Study 2) 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! Sustainable Commissioning Concept Ongoing monitoring (Case Study 2) Sustainable Commissioning Concept Ongoing Monitoring Genzyme Sustainability Programs Linking energy management to asset care and reliability GHG Emissions Reduction Reduced Energy Consumption Increased Reliability Genzyme Sustainability Programs Linking energy management to asset care and reliability • Reliability: - Ongoing monitoring identifies abnormalities in equipment operations • Benefits: - Avoids costly downtime - Avoids deviations - Avoid product loss - Increases reliability for critical support systems - Saves money Genzyme Sustainability Programs Linking energy management to asset care and reliability Why reliability? Idle/Minor stop Reduced Rate Moves the bar Scrap/ Rework Availability Start up Loss Efficiency Lost Units Set-up Containing and Controlling Loss Lost Speed Breakdowns Lost Time Theoretical Max Current Capacity Performance Quality Everything we do must move the line Genzyme Sustainability Programs Linking energy management to asset care and reliability Changes in Vibration PF interval 1-9 months Point where Wear Debris in oil P-F Quantitative PM P-F failure starts interval 1-6 months Interval 5-8 weeks to occur IR Thermograph P-F interval 3-12 weeks P1 P2 P3 P = Potential Failure Audible noise P-F interval 1-4 weeks P4 P5 P6 F = Failure F 32 Genzyme Sustainability Programs Linking energy management to asset care and reliability 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 Genzyme Sustainability Programs Linking energy management to asset care and reliability Critical manufacturing air handler simultaneous H&C fault Ongoing Monitoring Industry Benchmarking Retroactive Commissioning Cost Reliability Quality Energy Auditing Reliability Monitoring Energy Modeling Asset Care Genzyme Sustainability Programs Linking energy management to asset care and reliability We know that: • Excessive energy use/inefficiency is a sign of improper operation, wear, poor engineering, or an installation problem • Operational issues lead to premature failure • Failures can cause interruptions in manufacturing operations • Manufacturing issues can have legal implications and create loss of revenue Genzyme Sustainability Programs Linking energy management to asset care and reliability 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 Reduce energy costs Increase life expectancy of our assets Reduce impact on our environment Genzyme Sustainability Programs Linking energy management to asset care and reliability How? Enter into an enterprise solution which assists in maintaining efficiency and performance of all assets critical assets Compliance with International Standards ISO 55000 Compliance – Asset Life Cycle (2014) ISO 50001 Compliance – Energy ISO 14001 Compliance – Environmental Genzyme Sustainability Programs Linking energy management to asset care and reliability Solution: Select an enterprise solution which can: • Optimize maintenance, operational, financial resources • Integrate existing systems (EMS/BMS/EAM/SCADA) • Maintenance based on asset condition rather than arbitrary dates • Optimize reliability and continual improvement through asset intelligence • Integrate asset energy consumption and environmental impact into an EAM strategy • Assist in risk mitigation in the regulatory environment Genzyme Sustainability Programs Linking energy management to asset care and reliability Software solutions on the market: Genzyme Sustainability Programs Linking energy management to asset care and reliability 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 Genzyme Sustainability Programs Linking energy management to asset care and reliability 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 train employees. Genzyme Sustainability Programs Conclusion Through research and practice, we have learned that combining ongoing monitoring, retroactive commissioning, and energy auditing we will 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