GSK Irvine– Winner - Low Carbon Award 2013

The EuropeanChemical Industry Council

Winner of the 2013 Energy Efficiency Award

GMS Irvine - Energy Efficiency

GSK High Level Environmental Sustainability Strategy – Carbon Neutral Value Chain by 2050

20202015GSK Environmental Strategy

10% reduction in overall

Carbon Footprint

25% reduction in overall

Carbon Footprint

20% reduction

(Direct Ops)

20% reduction

(Value Chain)

• 2.5% Mass efficiency

• 25% Reduction in Operational waste to landfill

• 25% Reduction in hazardousand non-hazardous waste

• 5% Mass efficiency

• Zero Operational waste to landfill

• 50% Reduction in hazardous andnon-hazardous waste

Key GSK Products Supported by Irvine Site

Amoxil

AMOXILFormulations of AMOXIL contain amoxicillin, a semisynthetic antibiotic, an analog of ampicillin, with a broad spectrum of bactericidal activity against many gram-positive and gram-negative microorganisms

Augmentin

AUGMENTINAn oral antibacterial combination consisting of the semisynthetic antibiotic amoxicillin and the β-lactamase inhibitor, clavulanatepotassium

Irvine Energy Consumption vs GMS

From 75 GMS Sites,Irvine = 14% of GMS total Energy consumption.

Large scale Fermentation & Solvent RecoveryElectricity: Agitation, Cooling, Compressed air, HVAC

Gas: Solvent Recovery, Sterility, Process heating.

Energy Efficiency Projects

On-site Wind Turbine Generators

BioGas CHP

Biomass CHP

Near/Off-site Renewables

GMS Irvine -Sustainable Manufacturing Energy efficiency to Off the Grid.

Our ambition of taking Irvine, GSK’s largest energy using

site, off the grid.

-

20,000,000

40,000,000

60,000,000

80,000,000

100,000,000

120,000,000

Irvine Ulverston Jurong Cork Montrose Quality

Road

Port Fairy

2012 CO2 From Energy (tonnes)

Energy Efficiency 2009 – 201224% reduction in CO2 from Energy

Solvent Recovery Enrgy Savings

Dec-112011 Agitation

Electricity

Consumption

2010 Average

Agitation

Electricity

Consumption

% Change vs

2010

(Target= -5%)

2011

Agitation

Cost

2011

Production

Throughput

2011 SEC 2010 SEC SEC %

Change vs

2010

kWh kWh % £ Te kWh/Te kWh/Te %

PenG 1,974,757 1,609,735 22.7% £118,485 99.0 19,947 16,801 18.7%

Clav 1,076,983 866,780 24.3% £64,619 54.0 19,944 21,141 -5.7%

YTD

PenG 20,473,857 19,316,821 6.0% £1,228,431 1,363.0 15,021 16,801 -10.6%

Clav 10,637,056 10,401,365 2.3% £638,223 503.6 21,123 21,141 -0.1%

-

5,000

10,000

15,000

20,000

25,000

30,000

-

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11

SEC

(M

3/T

e)

Ele

ctri

city

Co

nsu

mp

tio

n (

kWh

) Peng Agitation Electricity

2011 Monthly Consumption (kWh) 2010 Average Monthly Consumption (kWh)

2011 Monthly SEC (kWh/Te) 2010 Average SEC (kWh/Te)

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

-

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11

SEC

(M

3/T

e)

Ele

ctri

city

Co

nsu

mp

tio

n (

kWh

)

Clav Agitation Electricity

2011 Monthly Consumption (kWh) 2010 Monthly Average Consumption (kWh)

2011 Monthly SEC (kWh/Te) 2010 Average SEC (kWh/Te)

Department Energy Reports and Focus Teams

Energy Savings Accumulator

£ Savings / day £ Savings / month £ Savings / year

1,100£ 33,458£ 401,500£

1,050£ 31,938£ 383,250£

1,000£ 30,417£ 365,000£

950£ 28,896£ 346,750£

900£ 27,375£ 328,500£

850£ 25,854£ 310,250£

800£ 24,333£ 292,000£

750£ 22,813£ 273,750£

700£ 21,292£ 255,500£

650£ 19,771£ 237,250£

600£ 18,250£ 219,000£

550£ 16,729£ 200,750£

500£ 15,208£ 182,500£

450£ 13,688£ 164,250£

400£ 12,167£ 146,000£

350£ 10,646£ 127,750£

300£ 9,125£ 109,500£

250£ 7,604£ 91,250£

200£ 6,083£ 73,000£

150£ 4,563£ 54,750£

100£ 3,042£ 36,500£

50£ 1,521£ 18,250£

-£ -£ -£

Dec-112011 Agitation

Electricity

Consumption

2010 Average

Agitation

Electricity

Consumption

% Change vs

2010

(Target= -5%)

2011

Agitation

Cost

2011

Production

Throughput

2011 SEC 2010 SEC SEC %

Change vs

2010

kWh kWh % £ Te kWh/Te kWh/Te %

PenG 1,974,757 1,609,735 22.7% £118,485 99.0 19,947 16,801 18.7%

Clav 1,076,983 866,780 24.3% £64,619 54.0 19,944 21,141 -5.7%

YTD

PenG 20,473,857 19,316,821 6.0% £1,228,431 1,363.0 15,021 16,801 -10.6%

Clav 10,637,056 10,401,365 2.3% £638,223 503.6 21,123 21,141 -0.1%

-

5,000

10,000

15,000

20,000

25,000

30,000

-

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11

SEC

(M

3/T

e)

Ele

ctri

city

Co

nsu

mp

tio

n (

kWh

) Peng Agitation Electricity

2011 Monthly Consumption (kWh) 2010 Average Monthly Consumption (kWh)

2011 Monthly SEC (kWh/Te) 2010 Average SEC (kWh/Te)

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

-

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11

SEC

(M

3/T

e)

Ele

ctri

city

Co

nsu

mp

tio

n (

kWh

)

Clav Agitation Electricity

2011 Monthly Consumption (kWh) 2010 Monthly Average Consumption (kWh)

2011 Monthly SEC (kWh/Te) 2010 Average SEC (kWh/Te)

Department Energy Reports and Focus Teams

Energy Savings Accumulator

£ Savings / day £ Savings / month £ Savings / year

1,100£ 33,458£ 401,500£

1,050£ 31,938£ 383,250£

1,000£ 30,417£ 365,000£

950£ 28,896£ 346,750£

900£ 27,375£ 328,500£

850£ 25,854£ 310,250£

800£ 24,333£ 292,000£

750£ 22,813£ 273,750£

700£ 21,292£ 255,500£

650£ 19,771£ 237,250£

600£ 18,250£ 219,000£

550£ 16,729£ 200,750£

500£ 15,208£ 182,500£

450£ 13,688£ 164,250£

400£ 12,167£ 146,000£

350£ 10,646£ 127,750£

300£ 9,125£ 109,500£

250£ 7,604£ 91,250£

200£ 6,083£ 73,000£

150£ 4,563£ 54,750£

100£ 3,042£ 36,500£

50£ 1,521£ 18,250£

-£ -£ -£

What is a Site Energy Kaizen ?

� Structured 5 day event, designed to identify energy saving opportunities, quantify plan and to identify resource & support

� A “focused” process that involves all users of energy in identifying energy reductions in their areas of “influence”

– requires commitment from site director thro’ to production operative

� Identifies all types of energy reduction opportunities from Just Do Its (JDIs) to capital intensive type projects

� Defines Responsibility and Time Plans

� Performance measurement using tiered metrics structure – energy dashboard

� Team working, encourages and empowers to achieve site commitment which is retained after the event

� Collaborative Approach -Kaizen team will provide structured help & assistance

HVAC,

Op

era

tions 1

Gemba

Energy Kaizen Agenda

Introduction Site &

Kaizen 0830

Key Focus Areas

Strategic projects

Energy Baseline-

Current Waterfall

Preparation

Assess Current

State data- Walk

the Walls

Energy Checklist

Bu

ildin

g

Occu

pa

ncy

Tie

red

Me

trics &

M&

T

Go

ve

rna

nce

TP

13

Measure ,Assess,

Diagnosis

Define, Identify

Opportunities &

Scoping

Improve

Performance

Management

Control

Quantification &

Tracking

Interim Outbrief

0830

Ma

inte

nan

ce 1

Op

era

tions 2

Wate

rfall

Dia

gra

m p

rep

ara

tion

Ou

t Brie

f

Pre

pa

ratio

n

1130 Out Brief

Kaizen Core Team

Preparation

Current Projects

Waterfall Review

JDI Account

abilities

Resources

New Projects

ReviewPartnerships &

Projects SupportStandard work

Team brief Team brief CHP

Quantification,

cost , savings,

benefits estimation

Planning- Waterfall

diagram

Preparation

Standard Work

Review

M&T Technique

Day 1 Day 2 Day 3 Day 4 Day 5

Kaizen Outputs

� List of Projects by CO2 Saving.

� List of JDI’s & Investigations.

� Developed into annual Performance targets

– Site commitment to resource & fund projects.

Project

Prob. of

Success

(0 to 1.0)

Benefits

realisation

from end of

TOTAL

Revenue

(RON)

TOTAL

Capital Cost

(RON)

Adjusted

Total

(kWh)

Adjusted

CO2

Saving

Adjusted

Cost Saving

(RON)

Adjusted

Payback

(years)

CHP 1 2013 Q4 1,029,680 -382,812 220.6 174,047 5.9

Reduce HVAC during w/e AHU 10 01, 03, 06 + VSD - critical 0.7 2013 Q2 35,000 444,014 123.1 69,959 0.5

AHU 10/02,04, 05 set back out of hours & VSD non critical 0.8 2013 Q1 35,000 137,805 44.6 26,322 1.3

FGW - HVAC "free cooling" (Pilot) 0.8 2012 Q4 20,000 45,000 156,000 43.2 24,579 1.8

Schneider Electrical Survey (HEM/VSDs/Harmonics) 0.5 2013 Q1 51,240 125,031 96,961 40.4 25,006 5.0

Metering Monitoring & Targeting 0.7 2013 Q4 75,640 103,887 105,371 31.4 18,180 5.7

Summer use excess heat from B10 to pre-heat boiler return 1 2013 Q2 61,000 165,750 30.5 15,028 4.1

Manual hot water control valves - automate 0.8 2012 Q4 30,000 129,600 29.9 16,085 1.9

Use small compr.(3kW) at W/E for Purified Water 1 2012 Q4 14,640 33,696 14.1 8,690 1.7

Seg. F26 and connect to HV10-02 and low rate at w/e in FG w/h 1 2012 Q4 10,000 50,000 13.9 7,878 1.3

Air manager control of air compressors 1 2012 Q4 29,280 32,936 13.7 8,494 3.4

Monition Thermographic Survey & Implementation 0.8 2012 Q4 39,040 29,280 58,820 10.8 5,333 5.5

Implement SWEEP / Shutdown / Start-up 0.4 2012 Q4 0 24,400 10.2 6,293 0.0

Compressed Air Leak Survey & Repairs 0.9 2012 Q4 9,760 22,590 9.4 5,826 1.7

Building 15 - Reduce heating load/ Improve controls 1 2012 Q4 4,880 43,800 8.1 3,971 1.2

Building 11 - Reduce heating load / Improve controls 1 2012 Q4 9,760 38,596 7.1 3,499 2.8

Task OwnerCompletion

DatePriority

Sunday electrical usage high - investigate reduction G.Popa 2012 Q2 High

Investigate FLT charging during lower tariff times S.Moroe 2011 Q4 High

Building 9 - Electrical water heater used for solvent store heating - is it required? M. Tipurita 2011 Q4 High

Building 14 - re-check temp setpoint against product requirement (try for wider band) S.Moroe/G.Popa 2011 Q4 High

Building 11 - re-check temp setpoint against product requirement (try for wider band) S.Moroe/G.Popa 2011 Q4 High

Building 15 - Repair windows that will not close I.Mindrila 2011 Q4 High

HVAC – Use the control system to check periodically the operation of control valves E.Hanzi 2012 Q2 High

HVAC - Make sure cooling and heating coils are not fighting against each other G.Popa 2011 Q4 High

Raise STP for HVAC Pilot- EECO2 S.Moroe 2012 Q1 High

Feasibility for new VSD compressor to replace fixed speed machine S.Moroe 2012 Q1 Medium

Heat from air compressor to heat technical area in winter duct heat out in summer T.Timofti 2012 Q1 Medium

Investigate timed main valve to isolate air during no production G. Popa 2012 Q1 Medium

Investigate in summer to use excess heat from Bl 10 to pre-heat boiler combustion air M. Tipurita 2012 Q2 Medium

Raise STP for Monition Thermographic Survey S.Moroe 2011 Q4 Medium

Produce SWEEP / Shutdown / Startup plans for each area P.Sava/A.Toma 2012 Q2 Medium

Investigate hot water solar panels for washing area M. Tipurita 2012 Q2 Medium

Lab project - monitor contractor cabins energy use S.Moroe 2011 Q4 Medium

Canteen - heating on window open / lock controls A.Boghiu 2011 Q4 Medium

Investigate Ground water precooling for Purified water plant G.Popa 2012 Q1 Medium

Compressed Air Drying for wash area : alternative ? G.Popa/P.Sava 2012 Q2 Medium

Building 15 - Close windows when heating is on C.Ghiorghitoiu 2011 Q4 Medium

Building 11 - Fit extract fan in toilets to avoid window being opened A.Agapie 2011 Q4 Medium

Building 11 - Close windows when heating is on A.Mitelut 2011 Q4 Medium

Irvine Site Energy Performance & Project Management

Visual Control board

Irvine Tiered Performance Review Process

Energy and Sustainability

Hourly Shift Daily Weekly Monthly Quarterly

Divisional

Site Leadership

Team Leaders

Day personnel

Operators Local Control boards,Visual tracker, SWI

Energy Centre

Local Control, StatusBoards

Local Control, Statusboards

Energy Centre

Local Value Stream

Boards

Shift handover

meeting(7am, 3pm,11pm)

PerformanceManagement

( Daily 9 am)

Dept. Energy Focus Teams

(Weekly & Monthly)

SM Board Meeting

TIP0 Progress Update

PPOSustainability

Council

Dept. Walls

Dept. WallsConference Room

Conference Room

Telecall

Performance and Projects Slide Pack

90 dayCloseout

Poster

Site Energy (CO2) Monitoring 2013

•YE forecast = 7 % reduction in CO2 per MT of Product•(YTD actual + Nov estimate)

Energy Efficiency Projects

On-site Wind Turbine Generators

BioGas CHP

Biomass CHP

Near/Off-site Renewables

GMS Irvine -Sustainable Manufacturing Energy efficiency to Off the Grid.

Our ambition of taking Irvine, GSK’s largest energy using

site, off the grid.

-

20,000,000

40,000,000

60,000,000

80,000,000

100,000,000

120,000,000

Irvine Ulverston Jurong Cork Montrose Quality

Road

Port Fairy

2012 CO2 From Energy (tonnes)

Wind Turbine OverviewConsented

Deferred

Planned

•4 x 2.5MW Onsite Turbines, (+2 Near site)•65 m to hub,•110 m to blade tip,•Expected yield 6GWh pa from each WTG

WWTP Biogas Project (IV1174)

�The Anaerobic Digestion Plant will :

�Reduce COD from our effluent by 50%.

�Produce 8 GWh of renewable power.

�Save 3,500 tonnes of CO2.

� Provide a cost save £1.4M p.a. by:

� Offsetting imported power.

� Providing Renewable incentives.

� Enable Water Reduction opportunities

Ref Poster

�Progressing activity towards a detailed feasibility study :

–Team supporting detailed feasibility study

–Issued RFQ - by Aug 13.

–Detailed concept study complete – Oct 13.

–Appointment of Preferred Bidder - Dec 13.

–PiP developed and submitted - by April 14.

–Build/Commission – by April 17.

�Options being considered:

� 2.5 MWe Backpressure Turbine

� 20 MWe condensing steam

Turbine

� Limited by Legislation on Steam use

(CHPQA)

(IV1442)

Gas offset by biomass (CHP remains) 156,867,470 KWh Req

Site Power Demand (2016) 208,205,784 KWh Req 2010 2011 2012

Yield No MWe Installation Electricity (KWhe)

% of Site

Demand

% Site

Req MWt Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

113%

Thermal

Output Output KWht

2013 2014 2015 2016 2017

96% 2 2.0 On Site NG CHP (Low Carbon) 33,638,400 16.2% Q3

113%

29% 1 2.5 1st On Site Wind Turbine 6,438,600 3.1% Q3

29% 1 2.5 2nd On Site Wind Turbine 6,438,600 3.1% Q2

29% 1 2.5 3rd On Site Wind Turbine 6,438,600 3.1% Q2

29% 1 2.5 4th On Site Wind Turbine 6,438,600 3.1% Q2

93% 1 1.0 On Site BioGas CHP 8,146,800 3.9% Q2 Q3

96% 1 20.0 On Site BioMass CHP 168,000,000 80.7% 15.5 130,200,000 Q1

29% 2 2.5 Near Site Wind Turbines 12,702,000 6.1% 6.1% Q2

Gap/Export 40,035,816- -19.2% 100%

Total Site Generation 248,241,600 119.2% 100%

95%

90%

80%

70%

60%

55%

50%

45%

40%

35%

30%

25%

20% 16%

15%

10%

5%

- - - Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2010 2011 2012 2013 2017201620152014

39%

26%

19%

113%

Overview of `OFF THE GRID` Activity