cscmp 201 net-zero in manufacturing

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OPEX: Achieving Net-Zero in Manufacturing Today’s Facility Manager April 2014, pages 28-32

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Manufacturers have been selling more energy efficient products for years, while finding ways to cut energy bills in internal processes. A leading manufacturer recently slashed its utility bills by 84% at its 250,000 square foot facility in New Jersey with a 2.77 megawatts photovoltaic setup. This facility is now producing more than 100% of the electricity needed to operate, making it a net-zero manufacturing facility. This is considered the largest solar installation in the state operated by a privately-held company, making this the only material handling manufacturer in the world to build its entire product line using electricity derived from 100% renewable sources.

TRANSCRIPT

Page 1: CSCMP 201 Net-Zero in Manufacturing

OPEX: Achieving Net-Zero in Manufacturing

Today’s Facility ManagerApril 2014, pages 28-32

Page 2: CSCMP 201 Net-Zero in Manufacturing

Session Participants

• David Stevens, SpeakerPresident & CEOOPEX Corporation

Dave Stevens is President and CEO of OPEX Corporation, a recognized global technology leader in high-speed mailroom automation, document imaging, and material handling. Dave assumed leadership of OPEX, a private, family-owned business, in April 2011. Dave is responsible for setting the strategic direction of the company and ensuring that OPEX Values and Principles are implemented at every level throughout the company and reflected in its corporate culture.

• Jeff Hedges, ModeratorPresidentOPEX Material Handling

Jeff Hedges, President of OPEX Material Handling, is a seasoned professional with over 27 years of experience in the material handling industry. Jeff possesses a unique and informed perspective on logistics and supply chain market trends and practices. Over the course of his career, Jeff has worked at Dematic, HK Systems and Retrotech before coming to OPEX.

Page 3: CSCMP 201 Net-Zero in Manufacturing

Jeff Hedges

President

OPEX Material Handling

Page 4: CSCMP 201 Net-Zero in Manufacturing

Consulting Firm, Frost & Sullivan

“Sustainability solutions are being implemented by business corporations, industrial manufacturers and service providers across a broad range of industries. In the material handling industry, not only are manufacturers embracing internal changes to contribute to a better environment; they also have found a way to incorporate the concept into the design of the products they make, enabling end users to achieve their own sustainability goals as well.”

http://news.thomasnet.com/IMT/2011/08/16/the-state-of-sustainability-in-material-handling-industry-2011/

Page 5: CSCMP 201 Net-Zero in Manufacturing

Sustainability in Material Handling

• Social responsibility• Financial benefits• Customer loyalty

– Increasingly, customers are demanding it

• Wal-Mart requires its suppliers to evaluate and disclose the full environmental costs of their products

• Competitive advantage:Key factor in a recent Material Handling technology sale for OPEX

Page 6: CSCMP 201 Net-Zero in Manufacturing

Dave Stevens

President & CEO

OPEX Corporation

Page 7: CSCMP 201 Net-Zero in Manufacturing

OPEX CorporationHeadquartered in Moorestown, New Jersey

• Established in 1973, Family owned, privately-held

• Global leader in high-speed mailroom automation, document imaging, and material handling

• Thousands of customers worldwide in financial services, insurance, healthcare, government, non-profit, utilities, telecommunications, education, retail and others

• Every product is designed, engineered, manufactured and tested in the U.S. by dedicated OPEX employees

Page 8: CSCMP 201 Net-Zero in Manufacturing

Our Green is Growing

• Since 2012, OPEX has derived 100% of the electrical energy needed to operate its 250,000 square foot manufacturing, distribution, and administrative complex from solar

• OPEX is now effectively a net-zero user of electrical power derived from traditional energy sources

– A net-zero building is one that generates as much energy as it uses over the course of a year

• Largest solar installation by a privately-held company in the State of New Jersey

• Every OPEX product is now manufactured using 100% renewable energy

Page 9: CSCMP 201 Net-Zero in Manufacturing

Key Project DriversStewardship of the Planet

• Energy efficiency is a key factor in our purchasing decisions

– High efficiency lighting retrofits throughout campus– Installed white reflective single membrane energy smart

roofing– HVAC automated energy management system– Installed highly efficient Xlerator hand dryers in 20

bathrooms throughout campus along with motion sensor lighting

• 95% cost savings versus paper towels, and uses 80% less energy than conventional dryers

– Over 26 tons of recycled paper, plastic, and glass in first year

• New 41,000 SF manufacturing facility integrated into our green footprint

– 100% LED lightening inside and out (parking)– State-of-the-art highly efficient HVAC system with automated

energy management system– Installed high R-value roofing insulation

Page 10: CSCMP 201 Net-Zero in Manufacturing

Key Project DriversStewardship of our Finances

• Attractive rates for solar renewable energy credits (SRECs) at the time

• 30% rebate offered by the federal government (no longer available)

• Significant reduction to operating costs (utilities)

Page 11: CSCMP 201 Net-Zero in Manufacturing

How it Works

http://www.homesolarinfo.com/how-does-solar-power-work.html

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Project Goals

• Project designed to generate 100% of the electricity needed to run total operations (2.77 million kWh) over the course of 12 months

• Designed for an operational 25 year lifespan

• 1% decrease in efficiency per year

Page 13: CSCMP 201 Net-Zero in Manufacturing

H2 Contracting of Marlton, New JerseyMark Heenan, LEED AP and PresidentProvided construction management and general contracting servicesFocused on renewable energy and sustainability projects – technology, costs, schedule, etc.

Design/Build ContractorH2 Contracting, a Division of Hessert Construction

Page 14: CSCMP 201 Net-Zero in Manufacturing

Project Scope

• 2.77-megawatt solar rays to electrical energy installation, which is consumed onsite and “sold” back to the grid– 8,373 solar panels, each

capable of producing up to 250 watts of electricity, installed on the roofs of both buildings

– Three acre solar field array– Two parking pavilions

Page 15: CSCMP 201 Net-Zero in Manufacturing

Project Scope

• Two charging stations located under the parking pavilions, which produce enough energy to power employee and customer electric and hybrid vehicles at no cost to the user

Page 16: CSCMP 201 Net-Zero in Manufacturing

So, Exactly How Much is 2.77 MW?

• Equivalent to eliminating the carbon emissions of 355 mid-sized vehicles annually

• Enough to meet the power consumption needs of 1,500 homes in a single year

• Carbon offset equal to planting 47,598 tree seedlings and letting them grow for 10 years

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Real-Time Online Monitoring

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Unforeseen Factors & Challenges

• Protracted township permitting process• Dramatic decline in the price of Solar Renewable

Energy Certificates (SRECs)– $650 per credit at start of project – About $150 presently

• Contractor selection process• Soil erosion, trees, and security issues• Fire prevention issues• Utility distribution fee• Solar does not preclude power outages

Page 19: CSCMP 201 Net-Zero in Manufacturing

Don’t Forget to Complete the Evaluation!

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