Yoon Hee Hong, SK E&C

Integrating Green into

Engineering, Procurement

and Construction

10 September 2012

Contents

I. Challenges facing Construction Industry

II. Environmental Management

III. Implementation of Green Engineering Process

IV. Best Practice - Green Building (SK Chemicals Eco-Lab case)

V. Next Step

Challenges facing Construction Industry

Part I.

Global Sustainability Megaforces

Climate Change

Energy & Fuel

Material Resources Scarcity

Water Scarcity

Urbanization

Wealth

Population Growth

Food Security

Ecosystem Decline

Deforestation

1

2

3

4

5

6

7

8

9

10

High

Low

Co

mp

lex

ity

Uncertainty Low High

Present

World

Known Unknown

Known

Unknown

Probable

Possible

Plausible

Unknowable

Business environment: Going north-east

[Ref.] KPMG (2012), Expect the Unexpected: Building business value in a changing world

Interactions

between

megaforces

Need to deal with more complex and uncertain business environment and global issues

Challenges facing Construction Industry

Wind

Photovoltaic

Biomass

Geothermal

Oil Sand

Natural Gas

Nuclear

Coal Era (19C) Petroleum Era (20C)

New Energy Trend (21C)

- Energy Diversification - High Efficiency - Clean Energy

High oil prices Climate change Resource depletion National policy

New trend toward diversification, efficiency and clean energy

Challenges Facing Construction Industry

Environmental impacts by construction industry in Korea

About 100,000 tons of GHG emitted Construction of 5 km

highway

About 47,000 tons of GHG emitted Construction of 100,000

m2 housing complex

About 20% of energy consumption

( 29% - USA, 33% - Japan)

Commercial and

residential buildings sector

Climate Change and Energy Consumption

[Ref.] MLTM (2010), press release

About 23% of energy consumption

( 41% - USA, 26%- Japan) Transportation sector

Commitment to

Environmental Management

Part II.

To minimize environmental impact throughout the life cycle of design-

procurement-construction-operation &

management

Campaigns and policies to cultivate eco-mind and engage into business practices and

daily activities.

Green Engineering Process Construction sites with green practices Green products

Green Design Green Procurement Green Construction Green Management

Implementation of

Green Engineering Process

Count all materials and energy inputs and outputs

Maximize efficiency

Minimize energy consumption and material use

Reduce the total life cycle cost

Part III.

Climate Change

Energy & Fuel

Material Resources Scarcity

Water Scarcity

Urbanization

Wealth

Population Growth

Food Security

Ecosystem Decline

Deforestation

1

2

3

4

5

6

7

8

9

10

Implementation of

Green Engineering Process

[Ref.] Miguel Mendez (2007), The role of chemical engineers in green engineering, Chemical Engineering

Important to consider product life

cycle (PLC) in the

process design stage.

80% of the costs are committed by design decisions at early stage of engineering

98% of the operating costs are committed

Best Practice - Green Building

(1) Goal:

Construction of a high performance building through integrated planning and simulation at

design stage

Part IV.

(2) Actions

1. Process: Integrated Design Process (IDP) and

Green engineering design process

2. Leadership: IDP Champions

3. Target: Set measurable targets

Apply cost effective technologies

Action 1. Process

Conventional Process

IDP & Green engineering design process

FEEDBACK

Project

Definition Pre-Design

Concept

Design

Design

Development

Construction

Documents

Bidding &

Negotiation

Construction

Supervision

FEEDBACK

Project

Definition Pre-Design

Construction

Supervision

Schematic Design Design Development

Design Charrette

Comprehensive Reviews Draft Performance

Target

Check Performance

Target

Integrated Design Process (IDP) and

green engineering design process

Action 2. Leadership

Consideration of life-cycle performance of the building

Engagement of expert charette throughout design process

Design expression to meet the owners project requirements

Contact relevant experts when necessary

IDP Champion

Conventional Process

Architect

IDP Champion

Leader

Leader

Contractor

IDP Champion

Specialty

contractor

Client

Project

Manager

Cost

Consultant

Architect Prime Consultant

Team

Site Design

Specialist

Program

User Groups

Community Advisory

Panel /

Academic Experts Green Building

Rating System

Expert

Building Design/

Simulation Specialists

Valuation /

Real Estate Expert /

Marketing

Sub-traders,

Product Suppliers and

Manufactures

Building Operator,

Utilities and Maintenance

Staff

System Specialist:

Commissioning Agent,

Control system and

security experts

Regulatory Authorities:

Government agencies,

Planners, Code Officials

IDP & Green engineering design process

Action 3. Target

The cost impact* by category

Q1

Sustainable Site (8.9%)

Water Efficiency (3.7%)

Energy (63.7%)

Materials (2.5%)

Indoor Environmental

Quality (16.3%)

Soft cost (Consulting) (4.9%)

Cost Impact* 70% 0%

Measurable targets with emphasis on energy consumption

* The proportion of

the incremental cost

How to reduce the incremental cost?

Q2

Simulation-based optimization for

performance enhancement

Data-based optimization for cost

minimization

Search and identify alternative

technologies and items

Apply knowledge from accumulated

database (cost vs. performance)

Optimization

Alternative items/technologies

Respond to related regulations

Set measurable targets and apply (cost) effective technologies

[ SK Chemicals Eco Lab case ]

(3) Outcomes

* G.F.A : Ground Floor Area

Location Seongnam City, South Korea

Stories 9 floors / 5 basement floors

Site Area 6,231

G.F.A * 47,512

Value USD 84M

Period 2008.07~2010.09

SK Chemicals Eco Lab

(3) Outcomes

1) Performance of the building

Energy consumption GHG Emission Water usage

242

136 146

Baseline* Target * Actual *

40% reduction (ASHRAE 90.1 2004)

* Baseline: Performance of baseline building

* Target: Target performance

* Actual: Actual performance

72

45 46

Baseline* Target * Actual *

36% reduction (1,200 tCO2/year )

1.24

0.58 0.46

Baseline* Target * Actual *

63% reduction

(kWh/m2) (kgCO2/m2) (m3/m2)

* * Based on the Secondary Energy

(3) Outcomes

2) Eco accreditations

LEED Platinum (ver 2.2)

Highest grade in

Green Building Certification Criteria

of Korea

Highest grade in

Building Energy Efficiency Rating System

of Korea

SK E&Cs Next Steps

To build better performing building and housing products with reduced incremental cost

To apply to industrial products and power plants

Part V.

Incremental Cost

(LEED Platinum)

present future past

Thank You

Yoon Hee Hong, SK E&C

yhhong@sk.com