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MSD Brinny Energy Management Programme (EMP)

Mark O�Connor, Site Energy Lead 26th February 2014

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MSD – Over 2,000 employees across 5 counties and 8 businesses

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Corporate Responsibility

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����������We are committed to

maintaining a workplace where our

employees and business can thrive.

Our Focus Areas

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Brinny Energy Story – Pre 2011

•  No Dedicated full-time Energy Lead

•  Accreditation to IS393 Energy Management Standard Feb 2009

•  Limited Resource Availability to build on accreditation success

•  Energy efforts focused on CHP Turbine solution to reduce site energy cost

•  Ad hoc approach to other energy reduction opportunities

•  Schering Plough merger with Merck late 2009

•  Increasing site consumption and cost

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Brinny Business Case

•  Reduce the energy operational spend aligned to global strategy (Target ’15) Merck Cost Reduction Program

•  Reducing standard cost - greater market access within supply chain

•  Reducing exposure to increasing energy pricing

How?

•  Integrated EMP approach:

!  Organisational ! Mother Energy A3/SOAP !  Annual Energy Plan !  Visual Factory !  Energy Projects !  Energy Kaizen Tool !  Energy Culture

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Brinny EMP – Organisational

•  Integrated Energy Management Programme aligned to ISO50001

•  Full-time Energy Lead supported by site wide energy team

•  Site Leadership Active Sponsorship & Governance

•  Global Energy Fund, Governance & Initiatives

•  Ireland Energy Team Quarterly Meetings

•  Inclusive and engaged workforce using Merck Production System (MPS) Merck Lean Sigma tools - (Kaizen, 5S, problem solving), Standardized Processes - (Tier Meetings, IPTs, KPI Metrics)

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Brinny Site Breakdown Overview

• Large HVAC load – fans, chillers, steam/LPHW

• Thermal approx 64% of Total KWh, 37% of Cost

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Brinny Energy Plan/A3 Snapshot •  Energy Portfolio Plan

detailing KWh/Cost saving estimate, realisable, risk factor, schedule factor, PMBOK to govern – Action Registrar

•  EMP A3 overview

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Brinny Opportunities Snapshot

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API IPT Energy Projects Hopper

In Progress Complete

Suite 2 HVAC

Optimisation

Suite 3 HVAC

Optimisation

UDEC Chillers

Optimisation

B18 HVAC

Optimisation

Turn Off E625

local Reheater

RO Optimisation

Suite 3

Steam Meters

Suite 3/ B18

Suite 3Steris Washer

Optimisation

De-Coupling of HVAC Suites 2/3

WFI 5/20/50 DegC

Optimisation

Steam Traps

Maintenance

Suites 2/3 HVAC De-Energizing Mode - HVAC

Suites 2/3 HVAC De-Energizing

Mode – WFI Loops and

Chilled Water Q4 2014 B18 Ramp Up

B18 Process Air

Compressors Replacement

Reduced HVAC Filters – B18

Trial

B18 Production Schedule Energy

Optimisation

WFI 5/20/50DegC Optimisation

Phase 2

Idea/ Feasibility

Project Planned

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•  Since 2012 Capital Energy Projects >€5m committed to date

"  1.5MW CHP, 14 No. Capital Energy Eff projects + No Cost Initiatives

"  €1.8m estimated savings of approved initiatives by end 2014

"  50% of delivering savings this year

"  Capital Projects Elec Focus

"  No Cost Thermal Focus

Energy Programme Cost Summary

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Brinny Energy Visual Factory •  Brinny has a growing energy monitoring & interrogation capability

•  >35 electrical meters to date

•  3 natural gas meters, 7 steam meters to date

•  Online M&T System with reporting capability

•  Area Usage Reports with KPI Metrics for SEUs

Site Monthly tracker Area

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Example: B18 Monthly Area Report

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Using M&T System to Identify •  M&T system facilitates energy interrogation capability

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Brinny EMP Governance

Brinny Overall Site Monthly Tracker Area

Merck Global Monthly Sites League Table

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Energy Awareness Importance

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Energy Awareness Importance

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Future Proofing: Combined Heat & Power Plant

• Realisation on CHP – key strategic energy supply cost reduction initiative (supported by IDA) – 1st Irish Merck site to install

• Design based on LPHW requirements with generated electricity meeting up to 40% of site requirements 1.56MWe / 1.44MWth

Net Annual GHG emission reduction = 3,116 tCO2 (equivalent to 633 cars and light trucks not used)

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Brinny CHP Considerations

• Technology – Turbine v Engine

• Suitability to Site – thermal load

• Sensitivity Analysis – capital cost, LPHW, Utilities Prices i.e Spark Gap Ratio

• Funding/Contract Options (ESCO BOOM model, DBOM, etc)

• Grant Aid Availability – SEAI , IDA

Extent of LPHW Network

Engineering Workshop

Services

Bldg.

OPS1 Bldg.

OPS2 Bldg.

Gas Incoming 100 metres

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Site Annualised KWh Trends

Brinny consumption now equivalent to approx 3,500 houses!

• Graphs highlight the 12 month rolling KWh consumption average

(i.e May 13 point is sum of previous 12 months)

Influenced by production variance & efficiencies

implemented – nature of slope

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Brinny EMP Benefits

• Contributing towards site goal of becoming more cost competitive (estimated cost savings to end 2013 in region of €0.9 mm since mid 2011).

• Site Reputational Enhancement aiding strategic decisions regarding our ability to deliver on our core manufacture of life saving medicines

• Change in site mind-set and culture resulting in increased staff engagement with energy usage reduction

• Meeting Environmental goals aligned with global 10% CO2 target by 2015 against 2009 baseline

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Brinny EMP Challenges •  Aggressive cost savings targets

•  Budget forecasting energy pricing, production variations to plan

•  Energy is non-core business

•  Limited windows to implement changes in production areas

•  Perceived risks to Quality of Change

•  Increasing Price Trend

•  Sustaining energy conscious behaviours

•  Older plant with inherent inefficiencies

•  Usage accountability due to where budget sits i.e. Facilities/Eng typically

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Brinny EMP - Future

•  Transition from IMPLEMENTATION to SUSTAIN Phase maintaining focus on organisational, technical and behavioural elements – empowering our staff to sustain

•  Continued improvement in site standard cost resulting in greater supply markets

•  ISO50001 Formal Accreditation

•  Engaging with Working Groups (PharmaChem Ireland, IBEC, SEAI etc)

•  Engaging with energy research opportunities to identify further operational efficiencies, i.e I2E2, TEMPO, CIT Nimbus, etc

•  Renewables if business case..

Thank you Find out more at www.msd.ie

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BACK UP SLIDES

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Environmental Sustainability!

We respect and care for the environment in everything we do. A healthy planet is essential to healthy people and the health of

our business.

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Presentation Roadmap •  Introduction to site

•  Problem Statement (Pre 2012) (1 slide)

•  Business Drivers for prioritisation & ‘True North’ (1 slide)

•  Organisational – Global, Site Energy Structure - Area Reps and Site Capital Projects Team

•  Technical - Waterfall, Project Hopper, Annual Energy Plan

•  Completed initiatives – cost savings, KWh savings, energy capital spend

•  Visual Factory – Energy Governance with M&T systems – Global dashboards & site based reports

•  Behavioural - Awareness Tools incl. energy days, moments, storyboards, Energy Training, Empowerment, Recognition

•  CHP Project Journey (1 slide)

•  Challenges – budget targets, forecast pricing, production schedules

•  Benefits of Programme – reputational, cost savings, environmental

•  Next Steps for Brinny – Sustain Phase

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Typical 3 port arrangement on CHW / CTW / LPHW systems

in Brinny, constant flow, constant pressure

How cost savings are achieved

CHW Supply setpoint temperature

•  Sent out to the chillers

dependent on ambient condition

•  The hotter the day, the cooler the CHW setpoint needs to be •  Automatically adjusts (i.e.

cooler at night = setpoint of anywhere between 5 and 8oC)

Throttling bypass decreases flow, increases pressure.

Physical Changes to the System

Cost savings

BEFORE

AFTER

3-port to 2-port Floating setpoint

CH6401 VSD Optimisation

Pump Savings

347 Mwh/yr

€ 34,689.60