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Fostering New Off-Grid Solutions NJ Clean Air Council April 1, 2009.

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Presentation on theme: "Fostering New Off-Grid Solutions NJ Clean Air Council April 1, 2009."— Presentation transcript:

1 Fostering New Off-Grid Solutions NJ Clean Air Council April 1, 2009

2 Founded in New Brunswick, NJ in 1886 250 operating companies Approximately 120,000 employees 14,900 employees and retirees in NJ Operations in 57 countries 3 Divisions: Consumer, Pharmaceuticals, Medical Devices

3 Climate Friendly Energy Policy 1999/2003 Achieve a 7% absolute reduction in Green House Gas (CO 2 ) emissions by 2010, compared to a base year of 1990

4 CO2 Reduction Pathway: A Balanced Approach Energy Efficiency On-site Cogeneration On-Site Renewables: Solar, Wind, LFG, Biomass, Geothermal Green Power Purchases Carbon Offsets & Sequestration

5 $40 million per year in capital relief for projects worldwide Projects provide good financial returns: 10-15% Internal Rate of Return Projects provide meaningful CO 2 reduction CO 2 Capital Funding Process August, 2004

6 CO 2 Reduction Projects since 2005 63 projects approved for funding $128.3 million US 120,000 metric tons CO2/yr Average IRR: 17.3% 45 Projects Complete 6

7 Efficiency Energy Best Practices Rev. 2007 Stage 1: Management Practices & Continuous Improvement Stage 2: Energy Purchasing & Monitoring Stage 3: Air Handling (HVAC) Stage 4: Motors & Pumps Stage 5: Boiler Systems Stage 6: Chiller Systems Stage 7: Electrical & On-site Generation Stage 8: Lighting Stage 9: Compressed Air Stage 10: Manufacturing & Other Load Reductions

8 DePuy - St. Priest, France Geothermal Heating / Cooling System Ground water heat pump Provides all heating & most cooling for 7,000 s.m. HQ building Vistakon – Limerick, Ireland Geothermal Cooling System Utilizes underground water flow Geothermal Projects

9 Cilag, Schaffhausen, Switzerland Wood Chip Boiler 350 kW boiler provides heating for distribution center ALZA, Mountain View, CA Landfill Gas Generation Installation of 3 MW of electrical power Waste heat recovery Biomass Projects Centocor, Cork, Ireland Biomass Boiler 2.1 MW boiler provides process & HVAC steam

10 J&J China, Shanghai Domestic Hot Water McNeil Consumer Ft. Washington, PA 124 kW Thermal System for Boiler Pre-heat Solar Thermal Projects

11 Ortho Clinical Diagnostics – Raritan, NJ Gas Turbine, 2007 1.6 MW – Kawasaki Gas Fired Turbine Heat recovery, steam generation Cogeneration Projects Ortho-McNeil Pharmaceuticals Raritan, NJ Reciprocating Engine, 2009 3.5 MW – Jenbacher Engine Heat recovery, hot water

12 Company:CordisLocation:Warren, New Jersey Project:72 kW Solar Photovoltaic Roof Mounted System Completed:May 2002

13 Company:Janssen USALocation:Titusville, New Jersey Project:522 kW Solar Photovoltaic Roof Mounted System Completed:February 2003 13

14 Company:J&J Consumer ProductsLocation:Skillman, New Jersey Project:505 kW Solar Photovoltaic Tracking System Completed:October 2005

15 Company:Ethicon Inc.Location:Somerville, New Jersey Project:250 kW Solar Photovoltaic Roof Mounted System Completed:February 2006

16 Company:J&J CorporateLocation:New Brunswick, New Jersey Project:234 kW Solar Photovoltaic Tracking System Completed:March 2006

17 Company:GPSGLocation:Raritan, New Jersey Project:515 kW Solar Photovoltaic Tracking System Completed:December 2007

18 Hyatt Hotel – New Brunswick – March 2009 Currently have three new solar projects in development at NJ locations.

19 Company:GPSGLocation:Vacaville, California Project:1,194 kW Solar Photovoltaic Tracking System Completed:September 2007 19

20 Commitment to Sustainable Design All new construction to be LEED certified Certification Level Incremental Cost Energy Reduction vs. Existing Buildings Certified0-0.5%26% Silver0.5%-1.5%32% Gold1.5%-3.5%44% Platinum6%44%

21 J&J PRD Lab Goes for LEED GOLD Designed to operate using 45 % less energy than ASHRAE 90.1- 2004 RC- 1 Laboratory, Springhouse Campus, PA


23 NJ Track Record of Leadership NJ BPU Clean Energy Program Renewable Portfolio Standard NJ Global Warming Response Act RGGI NJ Energy Master Plan LEV Program NEEP Energy Efficiency Strategy for NJ Draft Global Warming Response Act Recommendation Report

24 Moving Forward… Execute on plans, with emphasis in the short term on efficiency, equipment standards (CFLs, appliances, etc) and building codes. Continue to support distributed generation by industry: cogeneration, biomass, solar. Industrys role – Run businesses efficiently and implement distributed generation projects where it makes sense. Utilities role – Deliver low-carbon power. Execute CHP, solar, wind, biomass on a scale that is cost effective. Utilities must be rewarded for selling less. The net impact on GHG emissions should be a critical consideration for all State decisions.

25 Moving forward… Support national climate change legislation to set targets and timetables based on science (IPCC) and establish an economy-wide cap & trade system (allow RGGI to become part of a national system). See USCAP Blueprint for Legislative Action at A national cap & trade system will establish a market-based price for carbon that will drive innovation and investment to meet environmental goals at the lowest cost.

26 THANK YOU ! Dennis Canavan 732-524-6269

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