Interview

Genzyme Corporation / USA

Dr. Steven Driver Energy Director / Global Engineering

Prior to the ener.CON Europe 2014, we spoke to Dr. Steven Driver, Energy Director / Global Engineering, Genzyme Corporation
we.CONECT: In your opinion - what are the main current energy efficiency challenges and trends regarding the management and optimization of asset intensive industries and what are the specific challenges related to your company? Dr. Steven Driver: Some of the main challenges are financial constraints around implementing energy / carbon reduction projects. There is still a myth out there that investing in energy does not return on investment. Recently, we have been utilizing utility incentives which reduce the cost of projects. A second and important challenge is implementing energy conservation measures in regulated spaces (reduced air changes, sequence of operation changes, temperature, and humidity). It is possible to do this work, however involvement with quality groups and the process of re-validation can be time consuming and costly. Energy conservation work in regulated spaces requires a risk analysis, and upon completion of that analysis, only then can the energy project be completed. We have learned excessive energy consumption can be a sign of equipment abnormal operation which can put products at risk. The interrelationship between energy and reliability provides a critical understanding of the stability and condition of our assets which we rely upon for manufacturing products. we.CONECT: Which challenges do you foresee will take place in 2014/2015 concerning energy efficiency regulations/standards and requirements (i.e. requirements that derive from the EED)? Dr. Steven Driver: In 2014 and on, we see emissions requirements becoming more stringent in the United States. Currently in there are State mandated energy and emission laws around new constructions and renovations. Leading organizations like the American Heating & Refrigeration Engineers (ASHRAE) and Building Officials & Code Administrators International (BOCA) are referenced in the energy codes. Currently there is no carbon tax in the United States; however, there has been a recent focus on reducing carbon. In 2009, President Obama made a pledge that by 2020, America would reduce its greenhouse gas emissions in the range of 17 percent below 2005 levels, if all other major economies agreed to limit their emissions as well. A few initiatives around this plan aim at cutting emissions in power plants, promoting leadership in renewable energy, accelerating clean energy permitting, and modernizing the existing electric grid. we.CONECT: Which main regulations and certifications influenced your work in the past 12 months and which ones will be important in the future? Dr. Steven Driver: Many large corporations have realized the importance around carbon reduction and have established goals and objectives to meet those targets. Making a public commitment to reduce carbon and be an active part of the Carbon Disclosure Project (CDP) has provided Sanofi / Genzyme market exposure demonstrating a corporate commitment to improve our environment. To support our carbon reduction program, we are in the process of implementing the International Organization for Standardization ISO50001 (Energy Management) in some of our facilities. This management system, when implemented, will provide an energy baseline and guidance to maintain a successful energy program. we.CONECT: How does your company react to this wave of change and which strategies and measurements are you deriving from it? Dr. Steven Driver: Currently the company is reacting well to this recent change. Genzyme, a subsidiary of Sanofi, has had an established energy program for the past 4 years. The program has been successful and yielded over 10,000 MTCO2 with significant cost savings. Currently the projected net present value of the program is $7,390,510 USD with an internal rate of return of 73%. Sanofi, the parent company has created a North America Energy Team, which will eventually guide and track energy program performance for all their business acquisitions in North America, Genzyme included. we.CONECT: How do you measure and analyze the cost-benefit ratio of energy efficiency management? Dr. Steven Driver: All energy conservation measures are put in financial terms of NPV and IRR which enables us to make intelligent business decisions on what investment we should make. All of Genzymes identified energy conservation measures are scaled to determine the feasibility of implementation (financial return, timing, and complexity of implementation). Once projects are implemented, they are measured and verified for performance and financially monitored. The project portfolio measured for total investment which includes the cost of energy audits, salaries, training, and certifications required to maintain the program. we.CONECT: The training session you will present will focus on: Understanding Sustainable Building Commissioning and Interrelationship with Energy and Carbon Savings. Could you briefly

introduce us to the topic and its key leanings? Dr. Steven Driver: Due to proprietary barriers, up to 2010 there was no study completed comparing the performance of building commissioning technologies. From the completed research we have learned the process of retroactive commissioning (RCx: human intelligence correct issues) and ongoing commissioning (OCx: artificial intelligence -computers identify issues) need to be combined into one service. The importance of this topic is to deliver an important message that the process of energy management and commissioning is currently not a sustainable process. Many still dont understand the return on investment or the value proposition associated with these services. An emphasis needs to be placed upon deployment of annual energy auditing, retroactive commissioning, and ongoing commissioning / energy modeling to achieve higher levels of reduced carbon and significant returns on investment. we.CONECT: How different will be the energy efficiency management for asset intensive industries in the year 2020 compared to todays situation? Dr. Steven Driver: As new facilities are constructed, the level of automation for critical equipment and the supporting infrastructure will become more advanced. Automation systems will encompass not only the building support systems, but process equipment as well. Given this level of automation, I see energy efficiency management for assets becoming more centralized unlike the decentralized systems we deal with today. we.CONECT: Which challenge/topic would you like to discuss with your peers / other delegates at the ener.CON Europe 2014? Dr. Steven Driver: I would like to discuss what others, in regulated industries like biotechnology and pharmaceutical, are facing with the implementation of energy conservation measures in context of regulated environments. I would also like to learn more about what some of the relative pay backs on investments are for other companies given various locations around the world. Learning what others are doing with their sustainability programs would be beneficial as well. we.CONECT: Thanks a lot for this interview!

Interview Partner: Peter Haack and Dr. Steven Driver.

Steven P. Driver, Ph.D., C.E.M. has over 25 years of experience in engineering, project management, commissioning, and energy auditing. Dr. Driver is an alumnus of Northcentral University where he earned his Ph.D. in Engineering and Technology (2010) in building commissioning. He holds two copyrights, has one publication and a U.S. patent associated with building commissioning technology. Having completed numerous energy audits, both national and international, he continues his mission to reduce climate change through the use of advanced technology. As Genzymes Energy Program Director, he is responsible for a 10,000 metric ton carbon reduction and $3M energy cost savings achieved in less than 3 years. He assisted Genzyme in meeting their 2007-12 greenhouse emissions goal of 25% early resulting in the EPA Climate Leaders Goal Achievement Award. ener.CON Europe is the leading event for improving energy efficiency for asset intensive industries in Europe. Information about the event and about we.CONECT can be found at: http://enercon2014.we-conect.com/en/ Contact: Stefanie Nawrocki Program Manager I Corporate, IT & Manufacturing Division Phone: +49 (0)30 52 10 70 3 47 Fax: +49 (0)30 52 10 70 3 30 Email: Stefanie.Nawrocki@we-conect.com

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