merck & co., inc. west point, pa energy conservation/pollution prevention

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  • MERCK & CO., INC.West Point, PAEnergy Conservation/Pollution Prevention

  • ENERGY QUIZ

  • 1. Most of the energy we use originally came from:

    a. the sunb. the airc. the soild. the oceans

  • 2. Electrical energy can be produced from:

    a. mechanical energyb. chemical energyc. radiant energyd. all of the above

  • 3. Coal, petroleum, natural gas are fossil fuels. They are called fossil fuels because:a. They are burned to release energy and cause air pollutionb. They were formed form the buried remains of plants and tiny animals that lived millions of years agoc. They are non-renewable and will become extinctd. They are mixed with fossils to provide energy

  • 4. Propane is used instead of natural gas on many farms and rural areas. Why is propane often used instead of natural gas?

    a. its saferb. its portablec. its cleaner

  • 5. Natural gas is transported mainly by:

    a. pipelinesb. trucksc. bargesd. all three equally

  • 6. Global warming focuses on an increase in the level of which gas in the atmosphere?

    a. ozoneb. sulfur dioxidec. carbon dioxided. nitrous oxide

  • One of the greatest sources of energy is pride in what you are doing. Spokes

  • Merck & Co., Inc.West Point, PALocated in Montgomery County, PA, northwest of Philadelphia415 acre campus10,000 employeesPharmaceutical and vaccine product research and manufacturingRecipient of five PA Governor Awards for Environmental Excellence

  • Global Energy Management Program (GEMP)

    Started in 2000Company wide goal of decreasing energy consumption by 20% over six yearsOver 30 sites worldwide representedActivities managed by the Merck Energy Reduction Initiative Team (MERIT) utilizing a core team, various sub teams, and site representatives

  • Four Point Energy ProgramI. Goals and PrioritiesII. Annual ReportsIII. Best PracticesIV. Site Awareness

  • Merck - West Point utilizes its own multi-discipline Resource Conservation Team to manage West Point site-specific energy projects.

  • Chart5

    28700000000

    50300000000

    50900000000

    BTUs Saved

    Year

    BTU Savings

    Annual BTU Savings

  • Chart7

    2.87

    5.03

    5.09

    NOx Avoided

    Year

    Avoided NOx Emissions (Tons per year)

    Annual NOx Reductions

  • Chart3

    5111209779990.335945957

    5600000735111.283165714

    5992653720690.774004268

    &A

    Page &P

    Site Square Footage

    BTUs/Square Foot

    Year

    Site Square Footage (sq. ft.)

    BTUs/sq. ft.

    Site Growth vs. Energy Usage Rate

  • Energy Reduction ProjectsChiller and boiler management Steam system upgrades and steam trap programLighting upgradesCompressed air system improvementsCatalytic oxidizer operational efficienciesLaboratory fume hood energy upgradesHVAC heat recovery systemsEmployee Communications/Awareness

  • Challenges$$$ROI (Return on Investment)Capital expenditure avoidance MindsetCommunications, education, awareness

    The key to successful leadership today is influence, not authority - Kenneth Blanchard

  • Even if youre on the right track, youll get run over if you just sit there. - Will Rogers

  • Energy MattersTHANK YOU!!!

  • Additional/backup slides

  • Core Energy CommitteesAdministrativeAuditingBenchmarkingBest PracticesCommunicationsEngineeringFinanceNew TechnologyProcurement

    Thank you. Merck is pleased and honored to be able to present the West Point sites energy conservation and pollution prevention accomplishments at the Great Lakes Pollution Prevention Roundtable.Lets start by having a little fun together. Since we are talking about pollution prevention as a collateral benefit of energy efficiency, I thought it would be interesting to look at a little energy quiz we came up with, to kinda set the tone. Please raise your hand when you have an answer and Ill call on you (I have energy efficiency prizes I intend to hand out for each correct answer, as a ground breaker).ADBBACGood job! That quiz we just took actually came from the Winter 2003 Energy Matters newsletter, which is an internal Merck employee publication that the Company energy communication team publishes.Since we are talking about energy, I hope we can all agree that (.the quote.). And the pride we have as energy, environmental, and pollution prevention professionals is demonstrated in the results we achieve for our organizations and our environment at-large.Let me introduce the West Point site of Merck and Co., Inc.

    Additional emphasis on: Its a small city Supporting infrastructure own water supply power supply (65 MW cogen) security force fire brigade Hazmat team medical (doctors, nurses, EMTs, emergency room, 2 ambulances)For over twenty years the West Point site has managed and conserved its energy resources. Effective energy management is an extension of our core business. For purposes of this presentation, Im going to focus on our energy reduction accomplishments starting in 2000.

    In 2000 Merck established a world wide energy reduction program known as GEMP. Although the initial goal of the program was to reduce energy use by 10% over 5 years, Merck has since raised the bar and increased its goal to a 20% reduction over 6 years. (annual reduction goals normalized for growth and weather, if asked).

    The activities of this program are managed by the MERIT comprised of a core team, several sub teams, such as Communications, Best Practices, Engineering, and Auditing, and site reps from domestic and international Merck sites.

    West Point, as Mercks largest site, is extremely active in this program. We have representatives on the core team, the communications team and engineering team.

    CERES report - 10 year baseline of data (vs. three)All participating Merck sites are required to develop a site energy reduction strategy based on these four points.In addition to our active participation with the global MERIT program, West Point has its own Resource Conservation Team to manage West Point site energy projects. This team consists of representatives from site engineering, environmental, research, utilities, and the powerhouse.From 2000 to 2002 (inclusive), Merck-West Point reduced energy consumption at the site by 130 billion BTUs. I will discuss how we did that, i.e. our specific projects, shortly.

    If asked: Projected 2003 reduction: 55 billion BTUs (on target) Financial benefit: 2000-2002 - $2.6MM, 2003 - $1.1MMThis conference is a pollution prevention roundtable, and there is a direct link between energy conservation and pollution prevention or reduction. As a result of West Points energy reduction efforts from 2000 to 2002, NOx emissions from the generation of electricity have been reduced by 13 tons.

    NOx is a precursor to ozone pollution, and NOx emissions are a critical issue to the West Point site because of our location in the northeast severe ozone non-attainment region. Reducing energy consumption, and therefore subsequent NOx reductions, helps contribute to the sustainability of the West Point site. Reducing energy usage not only conserves resources (fuel) for the future, but enables Merck to continue to grow and further the development and production of life-enhancing medications by limiting our air emissions.

    If asked: 2003 - 5.5 tons NOx reduction NOx conversion factor: 0.2 lbs. Per million BTUs (industry standard)What does all this look like graphically?

    Since 2000, the West Point site has experienced a 17% growth. Energy usage at the site, however only increased 8.3%. In fact, the rate of energy use, as measured in BTUs per square foot, has actually decreased.Again, energy is not just a bottom-line benefit. The direct correlation between energy conservation and pollution prevention is evident, with subsequent sustainable economic benefits by enabling this PA-based company to continue to prosper and grow within the Commonwealth.Now, how did we get there (Ill go over our projects at this point)Obviously, there are going to be hurdles to overcome. The biggest.costs. I think this is probably a universal issue, not just business. When you decide to do an energy saving project in your home, you look at the cost of the project vs. what it will save you.whats the return on this investment? When I decided to relamp my own house with fluorescent bulbs, who do you think I had to answer to.my chief financial officer - my wife.So energy conservation projects need to demonstrate an appropriate return on their investment. In addition, however, a projects value may not simply be in its simple ROI, but may have a much larger value in its capital expenditure avoidance. In other words, if we decide to replace 10,000 light bulbs, this may result in being able to delay installing a new, very expensive electrical generator until later on. Or a steam saving project may result in delaying a new boiler installationanother very expensive initiative, until sometime later. This enables the company to hang onto that cash which they would have used to buy a generator or boiler now, for a while longer, and accumulate the value of that cash in the form of interest or investment value for a longer period of time. The other challenge is one of mindset. As Americans, we live in a very affluent society, with seemingly infinite resources at our disposal. Through communications, awareness, and education, were effectively demonstrating to people that the resources are not infinite, and there are better ways to do things that help our bottom line, reduce pollution, and continue to enable our f