Energy efficiency demonstration in manufacturing industry

Energy –2011-8-1

Bayer Technology Services GmbH (BAY)

Manchester, 3 August 2012

Bayer Technology Services

Company Profile for EFENIS 2012-08-03

Bayer Technology Services – a Bayer Subsidiary

Holding company

Group Management Board Bayer AG

Corporate Center Business areas

Bayer HealthCare Bayer CropScience Bayer MaterialScience

Page 3 • BTS Company Profile - EFENIS • 03. Aug 2012

Bayer Business Services Bayer Technology Services Currenta

Service areas

Bayer Technology Services – A Leading Technology Company

Technology solutions, services, know-how – our core competencies for your success.

Competent service partner for value-generating, holistic solutions along the entire life cycle of chemical/pharmaceutical products, processes and plants – we initiate, implement and support technological innovations over the long term from development through engineering and construction to process optimization. Complete technology packages go beyond our spectrum of services.

Technology Development Project Management & Engineering Operation Support & Safety Page 4 • BTS Company Profile - EFENIS • 03. Aug 2012

Bayer Technology Services – Full Year 2011

Employees Full Year Sales Global network Headquarter

2,700 * EUR 460 million 20 offices in 10 countries Leverkusen, Germany

* as permanent or fixed-term contracts, in FTE Page 5 • BTS Company Profile - EFENIS • 03. Aug 2012

Bayer Technology Services – Organization

Bayer Technology Services Technology Development

(TD)

Operation Support & Safety

(OSS)

… BTS Americas

(BTSA)

Enabling Technologies Process Design & Opt.

Upstream Processes Project Mgt. & Engineering

(PME)

… … BTS Asia

(Asia)

… Downstream Processes Operations Technology & Innovation Mktg of Services & Portfoliomgt.

   

Division Technology Development

Staff 330 (ca. 220 scientific) 7 units 2 subsidiaries 1 country organization

Key Experts BTS Benelux Ehrfeld Mikrotechnik BTS GmbH Invite

 

Unit Process Design & Optimization

Staff:  35 scientific staff  mostly ChemEng 4 groups (Customer oriented) Page 6 • BTS Company Profile - EFENIS • 03. Aug 2012

Customer & Product Mgt.

(CPM)

… Business Planning & Support

(BPS)

… Human Resources

(HR)

Technology Development – Portfolio

Chemical & Polymer Processes Product -by- T echnolog y Optimization & development Conceptual and technological product of production processes and future innovative manufacturing concepts.

design and development from a strongly interdisciplinary perspective.

Customized Analytica l Solutions Screening concepts and systems in Life Science R&D and process control. Automated, miniaturized assay, fluorescence imaging. Integrated protein analytics.

Biotechnolog ica l Processes Development, scale-up, transfer, optimization and implementation of Biotechnological Processes.

Computational Biolog y Support of R&D processes in life science companies by modeling & simulation.

T echnolog y Consulting & Public Funding Centre of expertise for technology evaluation, strategic consulting and acquisition of public research subsidies.

Page 7 • BTS Company Profile - EFENIS • 03. Aug 2012

Process Design & Optimization

for chemicals, polymers and active ingredient production

Process Design & Optimization Process Analysis Chemicals & Polymers Conceptual Design Chemicals & Polymers Crop Protection & Specialties Healthcare & Biotechnology • • • • • • • We

develop new process technology & entire processes

Bayer Subgroups and selected external partners by…

integrating broad BTS expertise

e.g. by our structured conceptual design brainstorming approach fast and realistic

evaluation of process variants

(CDKOS)

management of

cross-functional

process initiatives

. for We utilize and maintain a

unique network

with process & unit operations experts across TD ensuring a

holistic process engineering approach

We

optimize existing plants and processes

in close • • • cooperation with Bayer Subgroups and selected external partners comprising… Increase / adapt

product quality

Increase

plant availability & capacity

(de-bottle-necking) Energy

Efficiency Management

Systems We are the

center of expertise

for advanced & in-depth

process modeling at Bayer

and ensure transfer latest modeling developments Page 8 • BTS Company Profile - EFENIS • 03. Aug 2012

Sustainable energy efficiency is a key topic for BTS:

Bayer Climate Check & STRUCTese

● Bayer Climate Check involves two elements: ●

Climate Footprint

® (carbon footprint) to assess the climate impact of products ● The Energy Efficiency Management program

STRUCTese

® enables continuous and sustainable improvement throughout the organization ● Central element is the novel energy loss cascade to measure & visualize energy efficiency Raw Material from Suppliers own Raw Material Production Plant A Production Plant B Footprint Product B

Resulting in: t CO 2 e per t product

●

Energy Efficiency Check

to identify measures for energy & greenhouse gas emission reduction ● Results based on finalized 160 plants & buildings: energy savings potential 5…30 % ● Several Bayer-external customers • BTS Company Profile - EFENIS • 03. Aug 2012

Results:

● Implementation finalized at > 45 plants at BMS ● Significant reductions realized ● Key contribution to Bayer’s specific CO 2 emissions reduction target by 35% (2005  2020)

Bayer Technology Services‘ Interest in EFENIS

Status Quo within Bayer

  Global energy efficiency improvement programs completed (2007…2012) Industry leading energy efficiency management system (

STRUCTese

® ) developed and implemented globally for Bayer MaterialScience  So far with main focus on efficiency improvements at plant/train level

Next steps (supported by EFENIS)

  Test advanced total site methodology for a real integrated production site Evaluate „future“ State-of-the-Art total-site optimization methodology  Conceptual guidelines for site utility systems design and operation  master planning of new integrated production sites.

  Technology extension for heat recovery for total site integration Site energy optimization with uncertainty data Page 10 • BTS Company Profile - EFENIS • 03. Aug 2012

Bayer Technology Services‘ Role in EFENIS BTS will contribute by …

   Demonstration & Evaluation of the advanced total site analysis methodology for a pilot site Development of an IP protection, results exploitation & dissemination concept Providing feedback on the methodology development from a chemical industry perspective Page 11 • BTS Company Profile - EFENIS • 03. Aug 2012

Work Packages with BAY

coordination

/ participation

Decision-supporting Methodology WP1 Total site integration and optimisation WP2 Total Site carbon management WP4 Integration with CHP and distr.heating

WP3 Total Site waste heat recovery with intensified heat transfer Enabling Technologies Demonstration WP5: Chemicals WP6: Oil Refinery WP7: Coal-to Chemicals WP8: CHP and Distr. Heating Page 12 • BTS Company Profile - EFENIS • 03. Aug 2012 WP9 Technology transfer WP10 Project Management

Work Packages with BAY

coordination

/ participation

WP Num

WP 5

WP Title

Demonstration Putting into practice total site energy management for the chemical industry (BAYER) WP9 Technology Transfer (BAYER)

Type of activity

DEMO

Objectives

Task 5.1: Analysis of the as-is state of the site (BAY, support by UNIMAN, UPB and UNIPAN) Year 1 Task 5.2: Perform “fundamentally-improved” Total Site Analysis (BAY supported by UNIMAN, UPB and UNIPAN) Task 5.3: Detailed planning and implementation of identified improvement measures (BAY, UNIMAN, UNIPAN, UPB) Task 5.4.: Check transferability to other sites (BAY, UNIMAN, UNIPAN, UPB) OTHER Task 9.1 – Protection of project results Task 9.2 – Development of exploitation strategy Task 9.3 – Knowledge Dissemination Task 9.4 – Training Activities

Task 9.5. Energy Service Centre activities Start month 1 End month 36 6 36 Page 13 • BTS Company Profile - EFENIS • 03. Aug 2012

Page 14 • BTS Company Profile - EFENIS • 03. Aug 2012

Thank you!

Global Network & Local Offices

Mexico-City

Leverkusen (global headquarters)

Bergkamen, Berlin, Dormagen, Krefeld, Wuppertal, Wendelsheim Moscow Beijing Shanghai Berkeley Baytown New Martinsville Pittsburgh Belford Roxo Antwerp Page 15 • BTS Company Profile - EFENIS • 03. Aug 2012 Dubai Mumbai Singapore