North American OperationsKalamazoo Plant

Welcome to Kalamazoo

North American OperationsKalamazoo Plant

• In January, 2009, the Kalamazoo plant management staff met on a Saturday along with plant maintenance, electricians, controls engineers and an outside HVAC vendor to go on a “treasure hunt” to identify areas where Kalamazoo was “wasting energy” in the plant. This process works well, especially on weekends when everything should be off, to assess what’s running and to start asking questions – How can it be shut off? Should it be shut off? Why isn’t it shut off? • Areas of opportunity that we looked at were lighting, compressors, HVAC (heating, ventilation, air conditioning), variable frequency drives, weld gas loss due to leakage during non production hours and equipment left on or idle .

The Treasure Hunt

North American OperationsKalamazoo Plant

Impacts and Incentives

• Incentives of up to $200K (achieved $152K) from Consumers Energy based on calculated savings of projects• Growing energy costs of up to 10% per year• Reduction in Peak charges associated with electrical costs – Up to $300K/year• Long term gas and electrical savings to reduce plant overhead and make Kalamazoo more cost effective for customers• Removing Waste from process• ISO 14001 Target and Objective• Goal for 5 year business plan• Move towards being a “Green” plant

North American OperationsKalamazoo Plant

Controls System

• Tridium AX Jace Controllers for communication of all equipment• Tridium Web supervisor with corporate license to add other facilities• Added (13) Variable Frequency Drives on Exhaust Fans• Added (12) Variable Frequency Drives on Dust Collectors• Temperature controls and scheduling for (14) Roof Top Units (HVAC)• Temperature controls and scheduling for (8) Make-up Air Units• Paintline Oven and Burner controls upgrades to control temperature and schedule down time• Electrical Metering for all substations with history data to reduce electrical draw and peak charges

North American OperationsKalamazoo Plant

Controls System

North American OperationsKalamazoo Plant

Gas and Electric Savings

Gas and Electric as % of Sales

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2009 % of Sales Electric 2010 % Sales Electric 2009 % of Sales Gas 2010 % of Sales Gas

North American OperationsKalamazoo Plant

Gas and Electric SavingsElectricity: Cost and Volume

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2009 $'s 2010 $'s 2010 % Sales Electric 2009 (KWH) 2010 (KWH) 2009 % of Sales Electric

North American OperationsKalamazoo Plant

Gas and Electric Savings

Natural Gas: Cost and Volume(Monthly)

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2009 $'s 2010 $'s 2010 % of Sales Gas 2009 (MMBTU) 2010 (MMBTU) 2009 % of Sales Gas

North American OperationsKalamazoo Plant

Conclusion

Gas Savings 2009-2010 (Jan-Dec)

•$270,000 or 46% Reduction

•MMBTU Reduction - 36%

•13% Higher Sales

•Total Savings 2010: 490K •Project Payback = 1.3 Years

Electric Savings 2009-2010 (Jan-Dec)

•Lowered parts per KWH from 4.10 to 2.32

•7% reduction in Electrical Costs

•13% Higher Sales

•2 large launches with zero sales Sept- Dec

North American OperationsKalamazoo Plant

Project Details/Incentives

1. Get Baseline Data

2. Submit application early with a review with consumers previous to beginning project

3. Maintain all previous consumption reductions with data

4. Submit applications for incentives early