A Simple Path to Sustainability Presented by:. Steven P. Driver, Ph.D. Genzyme Energy Program Manager February

Agenda Agenda - About Genzyme - Principles and Practices of Sustainable Commissioning - Implementing low cost high carbon reduction measures - Integration of energy projects into ISO Conclusion - Q & A

About Genzyme A division of Sanofi Focused on rare diseases and multiple sclerosis 9 major marketed products 8,000 employees worldwide Founded in 1981 and pioneered treatments for rare diseases David Meeker, MD, CEO

Genzyme’s Energy Program Performance The Genzyme Energy program was formed in 2007 with a mission to reduce Genzyme’s annual utility expense Since 2007, the Genzyme energy program has saved over 13,142 MTCO 2 recovering over $4.9m which was used for other business investments Last year we completed 13 energy projects driving $2.7m of verified savings over the next 5 years. These projects will save over 3500 metric tons of carbon (equivalent to planting 79,361 trees) annually About Genzyme A division of Sanofi

Principles and Practices of Sustainable Commissioning 1 Create your energy baseline, preform O&F energy audit 2 Retroactively commission measures from energy audit 3 Connect to ongoing commissioning technology if possible 4 Measure performance using energy management system Sustainable Commissioning – the strategic process of combining artificial and human intelligence to attain maximum energy efficiency and savings while maintaining environmental sustainability

Principles and Practices of Sustainable Commissioning Research results: Study of 80 buildings, 2793 faults evaluated Target low cost high energy consuming faults

Principles and Practices of Sustainable Commissioning Energy audit should include cost, savings, IRR, NPV, and GHG emissions Conduct a post audit workshop Rank your ECMs in three categories on a scale of 1-10 for cost, feasibility, and implementation with a maximum score of 1000 to get a better understanding of probability of implementation

Principles and Practices of Sustainable Commissioning Example of ongoing commissioning Cimetrics fault diagnostics services report Typical algorithm for air handling unit

Principles and Practices of Sustainable Commissioning One ECM identified through OCx 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 MTCO 2 carbon!

Principles and Practices of Sustainable Commissioning Analytika for process Capabilities Capital asset monitoring Equipment and systems level analysis Predictive analytics Statistical and process modeling Process and quality engineering Historical data storage and traceability Benefits Improved process reliability and uptime Risk mitigation Improved product quality FDA compliance Predictive maintenance and troubleshooting Reduced waste and defects Investigative support

Principles and Practices of Sustainable Commissioning Investment vs. Opportunity – Genzyme 5 year value from OCx $ 1,224,194 Investment Realized 1.7 year payback on implemented measures ($ 718,513 actual savings) 10 month ROI if all $1.2m opportunities were implemented * Cost of service included and does not include rebates NPV: $2,415,616 As of May 2015

Implementing Low Cost High Carbon Reduction Measures Inefficient equipment operation (chillers, boilers, air handlers) Lighting replacement, ballasts, sensors Installation of automated lighting control systems BMS re-programming of sequence of operations for energy efficiency Reduction of air change rates Controls replacement / calibration Retrofitting constant volume fume hoods to low flow Some common energy measures identified applying the Sustainable Commissioning process requiring a business case: Simultaneous heating and cooling Fuel cell technology Solar panel installations Increasing piping insulation Building envelope leaks, façade, repairs, roof replacements Installation of VFD drives Optimization of central plants Installation of heat recovery systems (plate & frame/air to air HX) Combined heat and power (CHP) Micro-turbine + auxiliary heat use

Implementing Low Cost High Carbon Reduction Measures Case Study: Boiler Burner Upgrade in Framingham, Massachusetts Previous conditions: Two 800HP boilers operated with standard burners and control linkages; approximately 7 years old Project benefits: Installation of high efficiency Limpsfield low O 2 burners Optimize efficiency on part loaded boilers Significant reduction in CO 2 and NO 2 emissions and operating cost New high efficiency Lipsfield burner assembly installed in Framingham, Massachusetts

Implementing Low Cost High Carbon Reduction Measures Case Study: Boiler Burner Upgrade in Framingham Massachusetts Project Measured Savings: Annual natural gas savings of 25% Over 250,000 Therms per year Over 1,800 MTCO2e per year Utility Rebate - $165,000 Total Project Cost to Genzyme - $80,000 Return on investment in 6 months with a 5 year NPV of $550,000 and IRR of 200%. Savings validated by a Professional Registered Engineer New high efficiency Lipsfield burner technology

Implementing Low Cost High Carbon Reduction Measures

Sustainable commissioning was preformed on a 3000 ton chilled water system located in Framingham Massachusetts The process identified $110k in annual savings (880 kwh) applying OCx and RCx principles to correct issues. Estimated carbon reduction is > 601 metric tons (4) 750 Ton Water Cooled Centrifugal Chillers Issues included excessive secondary flow rate rates, reversed de-coupler flow, chilled water loop set at 38 degrees to feed one small piece of equipment when the remaining campus could run on 42 degree water, end of loop bypasses open, and unnecessary equipment left operational after central plant was installed.

Implementing Low Cost High Carbon Reduction Measures 31 NYA GPM 55/49 NYA GPM

Integration of Energy Projects into ISO Operational philosophy of integration of elements into the ISO framework ❶ Supported by Senior Management ❷ Create EnMS, establish energy baseline, set financial and carbon targets ❹ Preform M&V against energy baseline, reduce operations budgets for implemented measures ❸ Implement energy projects, increase employee awareness, deploy OCx and RCx technologies ❺ Adjust for system optimization, evaluate performance and control of records ❻ Eliminate inefficiencies – understand realized impact from cultural improvements ❽ Report on financial and influential variables, performance input vs. output ❾ Maintain macroeconomic view continuously evaluating for improvement ❼ Continuously monitor performance against baseline ISO Energy Management System Model

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