| Erik Familial Hypercholesterolemia USA Genzyme Sustainability Programs 2012 March 19, 2012

|www.genzyme.com

Erik Familial Hypercholesterolemia USA

Genzyme Sustainability Programs 2012

March 19, 2012

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 ProgramsEnergy 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

Demand(Directed by

Steven Driver)

Greenhouse Gas(Directed by Jeff Holmes)

Supply(Directed by

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

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

7

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

Genzyme Sustainability ProgramsHow did we do it?

• Formed a focused team in 2007 (Supply, Demand, GHG)

• Conducted ASHRAE level 1 energy audits all major energy consuming sites

• 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

• Combined energy auditing, modeling, retroactive and ongoing commissioning into one service

Genzyme Sustainability ProgramsHow 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 ProgramsInternational common theme ECM’s

• Lighting levels too high

• Lack of lighting sensors

• Sequence of operations not optimized for energy

• Air change rates beyondEU classification requirements

• Humidity and temperature control parameters (not required)

• 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

• High purity water and steam usages (steam trap failure)

• Lacking use of grey water

• Mechanical equipment upgrades

• Less than ideal boiler efficiencies

• High air filtration requirements

Sustainable Commissioning ConceptCombining 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 ConceptAnnual 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, CEACertified Energy Auditor

Mechanical Energy Auditor: Jeffery Fong CEA, CEMCertified Energy Auditor, Certified Energy Manager

Electrical Energy Auditor:Tim Rossini CEA, CEM, LEED AP Certified Energy Auditor, Certified Energy Manager

Sustainable Commissioning ConceptAnnual functional and operational auditing

Request for Information

Conduct Assessment

Build Energy Model

Generate Report

Present Findings

Conduct Workshop

Track Implementation of ECMs

Re-Assess

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

Create final report, estimate costs for ECM’s, savings, and ROI, IRR, NPV – use energy model

Present finding to site management in form of ppt presentation

Return to site to rank ECMS (ROI, quick, simple, feasible

Add high priority ECM’s to international tracking matrix, conduct weekly meetings

Return to site for re-assessment (functional test annually RCx). Implement OCx whenever feasible.

Sustainable Commissioning ConceptFunctional and operational auditing

• In-field instrumentation used:

− Infrared thermograph

− Amp Probes

− Lighting level analysis

− Vane Annometer

− Combustion analysis

− Magnehelic gages

Vaneannometer

Infrared thermograph

Amp ProbeLight Meter

Magnehelic Gauge

Combustion Analysis

Sustainable Commissioning ConceptFunctional 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

The process must become sustainable

(Annual Energy Auditing) + (Retroactive Commissioning) + (Ongoing Monitoring) + (Energy Modeling)

When is it time for a tune up?


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 ConceptTwo 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 Concept32 common faults were universal throughout the 80 buildings

1 Discharge / Return temperature fault2 Discharge / Exhaust pressure / static flow3 Economizer / Outdoor Exhaust Damper Fault4 Simultaneous heating and cooling5 Return / Space Air change rate under / over6 Space temperature fault7 Fan Cycling / Damper Oscillation8 Air balancing / Leaking9 Visual Thermostat in wrong location10 Visual Deflection / Vibration /

Overheating/Binding11 Relative Humidification Fault12 Visual improper valve / damper position 13 Pump / Valve / Oscillation Cycling / Leak

bye14 Water / Steam temperature 15 Water / Steam Pressure16 Water / Steam flow

17 Water / Steam leaks18 Pneumatic pressure (valve / damper)19 Fan / Valve Signal Oscillation / Unstable20 Meter calibration21 Sensor / Switch / Signal calibration / Low voltage22 Sensor / switch fault / Controller Flat line23 Smoke / Hood / Air filter Alarms24 Envelope leaks / Building Pressurization25 Visual Observations (incorrect installation, damage, drainage, missing equipment)26 Equipment Accessibility Issues / Housekeeping27 Equipment Performance / VFD Control/Status/Fault28 Runtime / Overridden in hand position29 Engineering issue (over/undersized)30 Incorrect labeling / Documentation Conflict31 Sequence Optimization / Tuning / Programming32 Field/BMS Issue (reversed or incorrect wiring)

Sustainable Commissioning ConceptEnergy savings from ongoing and retroactive commissioning

Sustainable Commissioning ConceptCombining 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)


Financial results:

DescriptionENE Controls Gas Elect TotalOngoing Commissioning $8,744 $69,818 $78,562Retroactive Commissioning $32,000 $45,500 $77,500Rebates Total $156,062

2011 Items Frequency 2011 2012 2013 2014 2015 2016

Antispated Cash Flow half first year 78,031 0 0 0 0 0

Implementation cost one time (50,537) 0 0 0 0 0Net Cash Flows 27,494 156,062 156,062 156,062 156,062 156,062

Cash flows for ECM IRR (50,537) 156,062 156,062 156,062 156,062 156,062Cash flows for program IRR (50,537) 156,062 156,062 156,062 156,062 156,062NPV (at 10.67%) $550,433Payback (months) 3.9IRR of program 309%

USD

SavingsInvested Cost$20,394$60,400$24,000-$54,257$50,537

Financial AnalysisParameters


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.: 8760.000Operating 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 ConceptOngoing 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


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 ConceptOngoing Monitoring

Genzyme Sustainability Programs Linking energy management to asset care and reliability

GHG Emissions Reduction

IncreasedReliability

Reduced Energy Consumption


• 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


Why reliability?

Availability

Efficiency

Performance

Quality

Set-up

Breakdowns

Reduced Rate

Scrap/ Rework

Start up Loss

Idle/Minor stop

Lost

Tim

e

Lost

Spe

ed

Lost

Uni

ts

Theoretical Max

Current Capacity

Containing and Controlling Loss

Moves the bar

Everything we do must move the line


32

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


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


Critical manufacturing air handler simultaneous H&C fault

-

Industry Benchmarking

EnergyAuditing

Energy Modeling

AssetCare

Reliability Monitoring

Retroactive Commissioning

OngoingMonitoring

CostReliability

Quality


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


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


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


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


Software solutions on the market:


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


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

Documents

| Erik Familial Hypercholesterolemia USA Genzyme Sustainability Programs 2012 March 19, 2012