1 1

MSD Brinny Energy Management Programme (EMP)

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

2

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

3

Corporate Responsibility

����&���)�!��#���#��'(&�#�(��#�#��(&)'(���

&�!�(�$#'��%'�by demonstrating the highest

ethical standards.

����&��+$& �#��($�$���&�')'(��#��!��'$!)(�$#'�(��(�+�!!���!%������*���!$��!�����''�($����!(���&���

���������������

���������� ����� ��

����&���##$*�(�#���#*�&$#"�#(�!!,�')'(��#��!��+�,'�($�"��(�(���+$&!��'�

���!(��#���'�#$+��#���#�(����)()&���

� ��� �� ���������� ������

����������We are committed to

maintaining a workplace where our

employees and business can thrive.

Our Focus Areas

3

4

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

5

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

6

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)

7

Brinny Site Breakdown Overview

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

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

8 8

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

9 9

Brinny Opportunities Snapshot

10 10

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

11

•  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

11

12

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

13 13

Example: B18 Monthly Area Report

14

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

15

Brinny EMP Governance

Brinny Overall Site Monthly Tracker Area

Merck Global Monthly Sites League Table

16

Energy Awareness Importance

16

17

Energy Awareness Importance

17

18

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)

19

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

20

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

21

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

22

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

23

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

25

BACK UP SLIDES

25

26 26

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.

27

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

28

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