1. The WW 90°C Project of Biochemie Kundl, Tirol, Austria

2. Biochemie Kundl R&D, fermentation plants, synthesis plants, pharmaceutical formulation plant One of world’s leading producers of antibiotics Manufacturing of one third of world’s oral penicillin >14.000 t/y of antibiotics, proteins and enzymes by fermentation Size of fermenters: 3000 - 250.000 liters >3.000 t/y of active substances by synthesis About 2000 employees

3. Energy / CO 2 Kundl is largest energy user / CO 2 emitter of Novartis –2,7 Mio GJ/y (~18% of Novartis) –70.000 t CO 2 /y (~15.5% of Novartis) Major energy use for –Air supply for fermenters (compressors) –Stirring of fermenters –Drying of mycelia, and sludge of waste water plant –Pumps –Solvent recovery –Sterilisation and heating of fermenters

4. Source of Waste Heat Hot water from cooling of 10 air compressors –Used for producing 1.5 bar steam Steam from dryers of mycelia and sludge –Comfort heating and warm water for community of Kundl * Opportunities (before project) : –Much warm water below 110°C still not used ý Conditions for feasibility for use: –High consumption to justify investment –Consumption throughout whole year

5. Project Warm water 90°C Optimization of evaporators in new project to allow low heating temperature (i.e. higher vacuum) Same optimization in some existing evaporators and other new ones * Investment of ~ 600.000 € * Estimated energy saving 2002: 43.000 GJ, expected after ~ 2 years: 72.000 - 100.000 GJ/y ý Savings based on 72.000 GJ/y: ý ~360.000 €/y ý ~4500 t CO 2 /y = 6.3% of site’s emission 1 % of Novartis’ emissions

6. Overview of System

7. Principle of System Generation of 1.5 bar Steam Pre-heating of Water in Boilers 1.5 bar Steam Heat Exchanger 135°C 90°C Heat Exchanger (back up) 1.5 bar Steam Steam Condensate 102°C 127°C Users 90°C Heat Exchanger 110°C 65°C 52°C 60°C 75°C Compressor Cooling 160°C Water Secondary back up cooling

8. Potential Barriers for Project “Everything feasible already done on site” Departments don’t know what others do Quantity not enough to justify investment Processes “cannot” be changed Scope is within site border only

9. Preconditions for Success Modern energy measurement and information system Sound knowledge of energy flow on site Sound knowledge of energy plants and users Good cooperation between process engineer, energy generator and energy user (knowledge of “other side”) –asking the “right” questions Step-wise implementation of mid term energy concepts –e.g design new equipment for later change to other energy source

10. Preconditions for Success (cont.) Energy saving awareness and management support: –Early energy challenge in projects –Open re-assessment of existing installations. –Openness for new solutions –additional efforts and work load –acceptance of project changes and (possible) delays –acceptance of higher investments