Building a low carbon economy

Building a low carbon economy

Chinese media delegation briefing

Sean Lockie, director of

sustainability, Faithful+Gould

11 October 2013

A framework for sustainability

Energy

Carbon

Waste

Water

Ecology

Comfort

Drivers

Cost Compliance

CSR Customer

Sustainability

Drivers - Cost

● Energy costs 25 per cent of total business cost

● Energy costs increasing

● Internal Rate of Return (IRR) of circa 40 per cent on some projects

● Changing business case (valuations, rentals, voids)

● Costs of techs coming down.

Cost Compliance

CSR Customer

Sustainability

Drivers - Compliance

● Energy Act 80 per cent by 2050

● Carbon budgets

● Carbon Reduction Commitment

● Mandatory reporting

● 2016 / 2019

● Faithful+Gould rated buildings 2018.

Cost Compliance

CSR Customer

Sustainability

Risks - unsustainable traits

Savings are available

Hospital Office Restaurant

Hotel Shopping Centre School

Source: Siemens Building Technologies 2012

Drivers - CSR

● Productivity

● Health

● Carbon footprint

● CSR strategies required certain investment funds

● Local jobs

● Voluntary reporting – CDP, GRI, GRESB etc.

Cost Compliance

CSR Customer

Sustainability

The business case is there

Source: WGBC 2013

And it’s not just a label

Valuations > rental > demand > voids > brown discount > green premium

Drivers - Customer demand

● Increasing amount of labelling

● Leading players aggressive targets

● Labelling of products.

Cost Compliance

CSR Customer

Sustainability

Atkins' turnkey energy

efficiency solution How it works

Client advantages

● Atkins designs, finances, installs and maintains the systems

● Atkins’ costs are repaid through the energy savings

● Reduce overall client operation cost

● Risks and responsibilities are rested on Atkins

● No upfront costs or investment for the client.

Identification of opportunities

Full investment grade proposal

Detailed design

Agree M&V strategy

Install & PM energy conservation

measures

Implement M&V

Ongoing guarantee of energy savings

Survey

Funding

Design

Maintenance

‘Energy

performance

contract’

Installation

The process

How can we be certain

technologies will pay back?

saved per year

34,000tCO2

Salix finance

£750m

9000

143 funds established

saved over project lifetimes

projects in 662 organisations

“A government fund

for the public sector ”

Technology Typical payback

LED lighting – lamp retrofit 4 to 5 years

LED lighting – complete luminaire upgrade 6 to 7 years

Building fabric insulation 3 to 10 years

Building management system upgrades 3 to 4 years

Combined heat & power (cogeneration) 5 years

Boiler replacements 4 to 5 years

Heating zoning and controls 3 years

Free cooling 4 years

Motor variable speed drives 3 years

Technologies and paybacks / Salix

UK case study - Frimley Park hospital

3.5 £3m

£900k loan for 17 EE projects

years payback

lifetime savings

UK case study – Marks & Spencer

Faithful+Gould is undertaking an in-depth Post Occupancy Evaluation (POE) of

Marks & Spencer’s (M&S) second largest store at Cheshire Oaks near Chester.

This prestigious new study is part of an extensive £8 million programme funded by the

Technology Strategy Board (TSB) designed to deliver more efficient, better performing buildings.

Post occupancy evaluation

Source: Marks and Spencer

Post occupancy evaluation

Source: Marks and Spencer

Post occupancy evaluation

Source: Marks and Spencer

China case study Confidential technology company

Production facility in Suzhou

2,500m² production area

24 hour operation

Injection machines

High-speed stamping.

• Poor HVAC design for production

area with insufficient cooling

capacity and distribution

• High energy consuming metal

halide lighting

• No use of free heating energy

from production waste heat for

heating offices in winter

• No energy monitoring system

• No effective maintenance

programme.

Problems

• New chillers and free cooling

• Re-design of HVAC System in

production & office areas

• Implementation of power meter

monitoring system (PMMS) to

improve equipment reliability and

energy consumption efficiency

• New lighting

• China and UK skills and products

used.

What we did

15% 36

£300k savings in 3 years

energy saving

The results

month ROI

Concluding themes

● Business case is changing

● Regulation and targets are getting tougher

● Importance of good data (evidence)

● New technologies.

For more information contact

Sean Lockie

sean.lockie@atkinsglobal.com

Celebrating 75 years of

design, engineering and

project management

excellence.

www.atkinsglobal.com