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a subsidiary of MiTek, Inc.a Berkshire Hathaway Company

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a subsidiary of MiTek, Inc.a Berkshire Hathaway Company

Applications for Pharmaceutical Manufacturing in Puerto Rico

a subsidiary of MiTek, Inc.a Berkshire Hathaway Company

� Founded in 1983, located in Gainesville, FL � Technology leader in the field of HVAC heat pipes � Wrap-around advanced dehumidification systems� Energy recovery heat pipe systems

� Distributes products through worldwide network of sales representatives, technology licensees, and foreign manufacturing partners.

� In Nov-09, HPT was acquired by ; MiTek, Inc., a subsidiary of Warren Buffett’s Berkshire Hathaway.

a subsidiary of MiTek, Inc.a Berkshire Hathaway Company

� New equipment & site retrofit applications� NO moving parts� Compact, minimal space needed to fit into A/C systems� Only simple cleaning required� Service life… same or longer than other components� Postpone expansion of cooling and heating plants� Quick payback … in most cases < 1.5 yrs!� 3,000-300,000 CFM systems

Free on-site analysis and evaluation!

a subsidiary of MiTek, Inc.a Berkshire Hathaway Company

• Prevents harmful bacterial growth• Limits microbial contamination• Maintains sterile working condition• Reduces downtime due to cleaning• Reduces waste• Improves packaging• Improves appearance of coated pills• Reduces drying time in fluid bed driers

Humidity Control in Pharmaceuticals

a subsidiary of MiTek, Inc.a Berkshire Hathaway Company

� Powder feed may get clogged due to moisture-laden powders.

� Tableting press may be damaged due to clogged powder feed.

� Bed temperatures and spraying rates may be altered, resulting in heat damage and moisture intrusion.

a subsidiary of MiTek, Inc.a Berkshire Hathaway Company

Abbott Labs Hoffman LaRoche Alcon WyethAmgen ** EthiconAventis Heraeus **AstraZeneca ** Baxter **Bristol Myers Squibb **Eli Lilly **Glaxo Smith Kline McNeil Pharmaceuticals **Merck Pfizer **

** Has an HPT system in operation in PR

a subsidiary of MiTek, Inc.a Berkshire Hathaway Company

1. The Challenge – The Old Approach2. Solution – Heat Pipe Systems3. Heat Pipe Psychrometrics4. On-Site Upgrades (Retrofits)5. Effect of Various Parameters on Paybacks6. Case Studies of 100% OA and Mixed Air

Oversized Cooling Coil

Moisture Removal

The Old Approach “Overcool/Reheat”

Reheat Coil

60�F/65%RH50�F/95%RH80�F

- Very high moisture content in ambient air or process- Cooling and dehumidification are required 24/7 all year long - High energy cost to operate facility

The Challenge for Pharmaceutical Companies

a subsidiary of MiTek, Inc.a Berkshire Hathaway Company

Hot and Humid Air

Overcooled Air

Reheated Air

a subsidiary of MiTek, Inc.a Berkshire Hathaway Company

Owner’s costs are SIGNIFICANTLY increased!

Lower Dew Point Required

Overcooling the Incoming Air

Need for Continuous Heat

Significantly Higher Energy

a subsidiary of MiTek, Inc.a Berkshire Hathaway Company

What is a basic heat pipe?� “Super conductors of heat”� A heat pipe can transfer an exponentially greater

amount of energy compared to natural convection or conduction

“Heat transfer rate along a heat pipe is up to 1000 times greater than through copper”

ASHRAE HVAC Systems and Equipment - 2008 Edition

a subsidiary of MiTek, Inc.a Berkshire Hathaway Company

Heat In

Heat Out

� A heat pipe utilizes the latent heat of vaporization & condensation (phase change) to transport the energy.

Traditional heat pipe:

Hollow cylinder filled with a two-phase fluid

2. Liquid turns into vapor3. Vapor rises to top4. Heat is released at top5. Vapor condenses to liquid6. Liquid drains to bottom

1. Heat is absorbed at bottom

HPT Dehumidifier Heat Pipe System

Increased Condensate

HEAT PIPE Psychrometrics

MOISTUREREMOVED

BY COOLINGSYSTEM WITHHEAT PIPES

LA SA

EA

Dry Bulb Temperature (°F)40 50 60 70 80 90 100 110 120

50

70

80

12

34

60

a subsidiary of MiTek, Inc.a Berkshire Hathaway Company

Where there is reheat… HPT system provides energy savings

How is Energy Saved ?� Load reduction due to “Pre-cool Effect”

Reduces Operating CostDownsize Central Cooling Plant

� Reheat reduction or elimination due to the “Reheat Effect”Reduces Operating CostDownsize Central Heating Plant

Reheat Reduction or Elimination?� Reduction on critical applications, and where there is terminal

reheat� Eliminate on non-critical applications

a subsidiary of MiTek, Inc.a Berkshire Hathaway Company

1. On-Site Retrofits: Existing SystemsHPT crew travels to job site to perform complete installation

2. HPT Factory Installs: Plan and Spec SystemsHPT systems are installed inside AHUs at HPT factory in Gainesville, FL

3. Pre-Packaged Ready to Install Heat PipesHPT systems are shipped to AHU manufacturer’s plant for installation

a subsidiary of MiTek, Inc.a Berkshire Hathaway Company

� Completed during scheduled PM shut down… allowing operator to optimize its facility’s up time� Schedule is flexible to accomplish operator’s goals

a subsidiary of MiTek, Inc.a Berkshire Hathaway Company

� HPT technicians take advantage of available space to facilitate access to cooling coil for cleaning and maintenance where possible.

� In smaller units, HPT Systems may be mounted directly on the cooling coil

a subsidiary of MiTek, Inc.a Berkshire Hathaway Company

� If terminal reheat is used, HPT Systems will be designed to give base reheat to all zones w/o overshooting space reheat requirements

� Terminal reheat is then used to trim reheat space requirementas needed

a subsidiary of MiTek, Inc.a Berkshire Hathaway Company

� HPT System reheat must be upstream of existing reheat

� Blower motor amps to be measured to confirm below service factor

� CFM may need to be adjusted to prior HPT system installation levels

� Condensate traps may need to be adjusted to account for added static pressure

� Controllable heat pipes when reheat is variable

a subsidiary of MiTek, Inc.a Berkshire Hathaway Company

1. Contact HPT rep: Technical Industrial Sales (TIS)

2. TIS to visit site for a preliminary survey and prequalify project

3. HPT will work with TIS to submit an initial budgetary proposal

4. If accepted, HPT will travel to site for final survey and to firm up price

5. HPT designs , manufactures and works with client to schedule the work with client’s needs in mind

a subsidiary of MiTek, Inc.a Berkshire Hathaway Company

Certain parameters have a substantial effecton system payback:� Location� Air Face Velocity� System Size (CFM)� Energy Cost

Base case for following graphical analyses:�10,000 cfm�500 fpm Face velocity�$0.16/Kwh and $1.50 for natural gas�Standard system efficiencies cooling and heating�Heat pipe prices are based on a complete site retrofit

a subsidiary of MiTek, Inc.a Berkshire Hathaway Company

1015202530

Boston Newark Atlanta Tampa Puerto Rico

Mon

ths

PaybackLess than 15

month Payback

- Effect of Location

All locations < 2.5 yr payback

a subsidiary of MiTek, Inc.a Berkshire Hathaway Company

10

11

12

13

14

15

16

250 300 350 400 450 500 550

Mon

ths

Face Velocity (fpm)

Payback

- Effect of Face Velocity (in PR)

All scenarios < 1.5 yr payback

a subsidiary of MiTek, Inc.a Berkshire Hathaway Company

10

11

12

13

14

15

0 10,000 20,000 30,000 40,000

Mon

ths

Total CFM

Payback

- Effect of Project CFM (in PR)

All scenarios < 1.5 yr payback

HPT’s experience says most systems fall in this range

a subsidiary of MiTek, Inc.a Berkshire Hathaway Company

11

12

13

14

0 20 40 60 80 100

Mon

ths

% Outside Air

Payback

- Effect of Outside Air (in PR)

All scenarios < 1.5 yr payback

a subsidiary of MiTek, Inc.a Berkshire Hathaway Company

9

10

11

12

13

14

0.12 0.17 0.22 0.27

Mon

ths

Elec Cost Blended $/kwh

Payback

- Effect of Electricity Cost (in PR)

All scenarios < 1.5 yr payback

HPT’s experience says $0.18-0.22 is average per Kwh.

a subsidiary of MiTek, Inc.a Berkshire Hathaway Company

9

10

11

12

13

14

1.3 1.4 1.5 1.6 1.7 1.8 1.9 2.0 2.1

Mon

ths

Gas Cost $/therm

Payback

- Effect of Gas Cost (in PR)

All scenarios < 1.5 yr payback

HPT’s experience says $1.6-2.0 is average cost per therm.

HPT System - Site Retrofit Case 1Pharmaceutical Manufacturer - 100% Outside Air

� San Juan, Puerto Rico� 50,000 CFM Total Air� 525 fpm Air Velocity� Hot Water Reheat 10 F� Energy Cost:

Natural Gas $1.78 per thermElectric Rate $0.19/kwh

� 24/7 Operation; 365 days/yr

Summary

Precool Savings $ 28,000

Reheat Savings $ 70,000

Fan Penalty $ 7,500

Net Savings $ 91,000

Installation cost estimate $ 88,000

Simple payback 11.5 months

a subsidiary of MiTek, Inc.a Berkshire Hathaway Company

� San Juan, Puerto Rico� 22,800 CFM of Total Air, 1,800 CFM O/A, 21, 000 CFM

Recirculated� 456 fpm Air Velocity� Hot Water Reheat 8 F� Energy Cost: Natural Gas $2.0 per therm, $0.16/kwh� 24/7 operation; 365 days/yr� Standard plant efficiencies

Summary

Precool Savings $ 18,000

Reheat Savings $ 45,000

Fan Penalty $4,000

Net Savings $ 58,000

Installation cost estimate $ 50,000

Simple payback 10.3 months

a subsidiary of MiTek, Inc.a Berkshire Hathaway Company

1. Both new equipment and on-site retrofit applicationsSchedule flexibilityMinimum plant downtime

2. Rapid return on investment… PR payback < 1 ½ yrs on virtually all HPT systems

3. NO moving parts, therefore NO “wear and tear” on the heat pipe systemLong service life… > 20 yrsSame maintenance as cooling coils

4. Compact – little room is needed to fit A/C systems

5. LEED point qualification

6. Free on-site analysis

a subsidiary of MiTek, Inc.a Berkshire Hathaway Company

Over 30 years of experience, and now backed by a Berkshire Hathaway Company…

The Passive Dehumidification Experts!

Please contact us at [email protected] with any questions.