TEM Total Energy Management (TEM)

Husky Injection MS Ltd –Total Energy Management (TEM)TEMCase Study – Bolton CampusAl Fiacco, P.Eng., CEMOctober 23, 2009

Husky Injection Molding Systems Founded in 1953, Husky is world’s largest Injection Moldingequipment supplier ( 1.2B in sales in 2008)A technology and environmental leader with history ofinnovation3300 employees worldwideBought by Onex, a leading North American private equity firm,in 20062

Husky Bolton, CanadaDudelange, LuxembourgVermont, USAShanghai, China3

Design & Construction Management at HuskyProvide operational consulting, design and project management servicesto support our existing facilities and prospective customers in: Evaluating business opportunitiesImplementing business improvementsTotal Energy ManagementNew and renovation factory projectsHusky utilizes TEM as a holistic approach to Reduce and Sustain energyConsumption in injection molding operations.Total Energy involves everyone and all activities in the companyEnergy Energy reduction must be continuous and sustainableManagement Energy can and must be managedTEM requires 100% top management commitment4

Magnitude of Savings Potential savings from effective Energy Management System are around 10% to 35% of current energy cost for most plastics processing plantsSavings can be achieved through a combination of No-cost, Low-cost, andInvestment actionsEnergy cost savingsOrganizational /Management Top management commitment Monitoring and Targeting Improved process management Creation of management controlsystem Staff Energy AwarenessCapitalInvestmentMaintenance Controlling the use ofservices in process andbuilding Includes small maintenanceinvestment (typically 1 year) Possible through investmentin energy-efficient processingtechnologies Typical payback is 3 years Certified Energy Manager5

Husky TEM Program – 9 Steps1 - Understanding where and how much energy is used2 - Understanding of When energy is used through Sub-meteringKilowatts (kW)1500Peak 1350 kW1000500Base load 950 kWFridaySaturdaySundayMondayLong-weekend 0:00:0016:00:0015:59:5907:59:5908:00:0000:00:003 - Monitoring and Targeting (M&T)Metering at main switchboard does not always providenecessary informationCosts and responsibilities should be allocated based on real energy usage6

Steps in Implementation of TEM4 - Data analysis––––SPC analysis for energy usageEnergy profileCost allocation and budgetingForecasting energy consumption per department5 - Reporting energy KPIs (Energy dashboard) by department–––––Electrical cost as % of production costMonthly deviation from predicted and target energy usageCumulative deviation from predicted and target energy usageElectricity cost and production volume by monthStatus of energy reduction projectsElectrical cost as % ofproduction costMonthly deviation frompredicted and targetenergy usageCum. deviation frompredicted and targetenergy usageElectricity cost andproduction volume bymonth7

Steps in Implementation of TEM6 - Identify, Quantify, and Prioritize opportunities in the following areas:- Process- Building and infrastructure: 1) Insulation3) HVAC2) Lighting- Auxiliary equipment:4) Infiltration1) Electric motors4) Compressed Air2) Process water3) Dryers5) Grinders7 - Eliminate waste and reduce consumption through Implementation ofselected energy reduction projects8 – Conduct internal and external benchmarking9 - Repeat steps 1-8 – Continuous improvement8

Implementation of TEM at Husky(Bolton Campus Case study)9

TEM Case Study - Husky Savings achieved through implementation of“Total Energy Management” program (TEM) TEM was implemented in three parallel steps:A. Rate Negotiation & Risk MitigationB. TEM’s 9 steps programC. Energy Education of Husky employees10

TEM Case Study - HuskyA - Rate Negotiation & Risk Mitigation Supply agreement negotiation with third party Electricity suppliers resulted in 500K savings in first 3 years.Demand / Response program (OPA)– 6 k / month rebate if Husky reduces consumption by 5% with 90minutes advance notice Husky Peak Response– Energy Champion monitors campus electrical consumptionand advises team leaders to curtail consumption Supply Agreement negotiation with third party NaturalGas suppliers resulted in 400K savings over 6 years.11

TEM Case Study - HuskyB – TEM’s 9 steps program Dedicated Energy / Facilities Manager at all Husky sites:GREENTEAM» Global Sponsor: C.O.O. – Keith Carlton» Bolton:Al Fiacco, Dave Kernaghan, John Florian,Ryan Fabi, Greg Rebec» Luxembourg:Pascal Brandebourg» Vermont:Gary Gawor» Shanghai:Mike Chen Create Global Energy Standards for Lighting levels and HVAC seasonalset points as company policy. Understanding when, how much, and where energy is used throughMonitoring & Targeting (M&T) ION Sub-metering electricity and Natural gas usage of every building incampus 14 sub-meters in one Bolton building as it represents 50% of the wholecampus’ consumption12

TEM Case Study - HuskyB – TEM’s 9 steps programMetering & Targeting – ION Metering of main substations to understandWhen & How much:13

TEM Case Study - HuskyB – TEM’s 9 steps programMetering & Targeting: Mold Test Hall ION Sub-metering Where:Since May 2009, Molds test hall is savings over 2000 / month in electricity14

TEM Case Study - HuskyB – TEM’s 9 steps program Identify production times and opportunities.– Energy Conservation & Team Leaders meet regularly to optimize energyconservation.– Identify light fixtures, motors and other electrical devices. Energy / Facilities Manager Functions–––––Performed after-hours audits to itemize savings opportunitiesEvaluate new energy efficient technologies, set standards.Assign project priority and secure funding and grants for projects.Manage mechanical installationDocument energy savings progress. Security & Team Members manual shutdown– Security Staff initially shut down computers, lighting, chilled pumps, Aircompressors and Plastic injection equipment until automated controls wereinstalled.15

TEM Case Study - HuskyC - Energy Education of Husky employees A series of campus wide training seminars wereconducted to increase employees’ awareness. Over 900Bolton employees were trained using Husky and NRCanbest practices in August 2007. The Energy awareness presentation was translated toMandarin and provided to our 200 Shanghai employeesin September 2007. New Husky staff with receive sustainable training throughthe ‘Intro to Husky’ Program effective November 1, 200716

Husky Energy Projects (TEM)17

TEM Case Study - Husky ProjectsPlant Dehumidification - Sample project 1 Ion Sub-metering AMC Building to explain Natural Gas Consumption2000020051800016000Cubic rilMayJuneJulyAugSeptOctNovDec If you cannot measure it, you can not fix it. Audit everything 18

TEM Case Study – Husky ProjectsPlant Dehumidification - Sample project 1 30K/ year saved through local dehumidification insteadof central AMC rooftop dehumidification 9 month ROI*.20000200518000200616000Cubic Meter1400012000100008000Implementation of localdehumidifiers6000400020000JanFebMarch AprilMayJuneJulyAugSeptOctNovDec* 70,000 m3/ year at 0.43 / m3 all inclusive Natural Gas Cost19

TEM Case Study – Husky ProjectsHVAC – Sample Project 2 Five dated Heat Pumps /w rooftopductwork were replaced by FIVEnew 410A Carrier High EfficiencyRooftops in 2009. EER 11.4 134,000 investment 2.5 yr ROI on Energy Saved Hydro One ERIP* rebate of 7,500received within 2 months.* To Qualify for ERIP, the EER must be 10.8 minimum20

TEM Case Study – Husky ProjectsHVAC – Sample Project 3 – Molds HVAC Controls Upgrade Invested 166 K on complete visibility of all HVAC systemsUnoccupied temperature setbackin all areas – Energy SavingsHusky awarded 50,000 SMARTsponsorship, 3 yr ROIAllows remote monitoring of criticalmanufacturing areasThe increased effectiveness of theinternal HVAC staff allowed for theremoval of the external rooftopcomprehensive agreement 53K saved / year21

TEM Case Study – Husky ProjectsLighting Project – Machines – Sample Project 4Description: High Bay lighting retrofit in the AfterBeforeAfterMachines Test Hall.Metal Halides light fixtures werereplaced by 8 lamp T5 Fluorescentfixtures.Light levels and color renditionimproved 25%Summary Financials: Hydro costs reduced by 34% or43,077 kWh / yr The 3.1 yr ROI will produce 4 Ksavings/yr Hydro One incentives will improvethe return to 3 yrs.22

TEM Case Study – Husky ProjectsCompressed Air Design in AMC - Sample Project 5 85,000 invested on a new VFDAir Compressor, increased pipingdiameters, 1660 USgal Reservoirand Flow Controller in Aug.2009 SMART Program sponsored 40,000 towards the project andreduced the ROI to 1.8 years Plant Air pressure reduced from125 psi /- 10 psi to a steady107 /- 1 psi23

TEM Case Study – Husky ProjectsPowerKure Power Conditioning - Sample project 6 285K / year energy savings 0.9694% Power Factor0.94produced a 1.9 year ROIReduced line losses andharmonic distortionPower Factor consistentlyabove 94%P o w e r F a c to r0.920.9Implementation 20032004200520062007200824

2009 Energy Reduction Target - 3%TargetZERO - Husky Carbon Neutral Target by 2025Bolton kWhdistributionbyBoltonkWh Distribution byBU BUMACH 19%MOLDS50%COMP 14%In Bolton alone, a 3% or 1,285,050kWh annual electricity reductionequates to:– 232 Tons of CO2e reduction, or– Planting 28,800 evergreen treesROB 4%AMC 12%– 117,000 / year bottom linesavings251.Bolton Campus Annual KWH consumption 2008 42,835,2182.Reducing 5,555 kWh in Ontario 1 Ton CO2 ; Sequestration: 1 Evergreen Tree 9.05 kg CO2 / year25

Bolton Electrical Savings Impact in 20092009 YTD Electrical Savings- Bolton US - Sept. 30, 2009 21,832 48,300 17,935On Target fora 20.5% or 780,000* costreduction and a 337,603 136,6137% kWh EnergyProject reductionLightingAirDR3 and Husky PRMotor ControlsRate Reduction* 500K from Demand Rate and 280K from Energy Reductionover 200826

Global Energy Vision for Husky Ensure energy effectiveness is a priority Perform facilities energy audits globally Engineer energy-efficient Systems Market Husky’s successes and encourage other industriesto follow Mitigate rates with electricity and gas supply agreements R&D into new technologies and sustainable generation.27

Husky Injection MS Ltd –Total Energy Management (TEM)TEMCase Study – Bolton CampusAl Fiacco, P.Eng., CEMOctober 23, 2009

2 Founded in 1953, Husky is world’s largest Injection Molding equipment supplier ( 1.2B in sales in 2008) A technology and environmental leader with history of innovation 3300 employees worldwide Bought by Onex, a leading North American private equity firm, in 2006 Husky Injection Molding Systems