The Challenge
Amneal Pharmaceuticals is an integrated specialty pharmaceutical company that manufactures generic and a growing stable of branded medications. Their business success is a result of new approaches and ideas and reinventing processes within their organization. As part of this mindset, Amneal Pharmaceuticals asked MES to help them integrate green energy practices into their business and reduce their energy expenses from the $6 million they pay annually to the local utility company.
The Project
MES developed an integrated solution for Amneal Pharmaceuticals that is currently being implemented in phases over the course of the next few years. This plan includes combined heat and power (CHP) cogeneration systems and new, more-efficient HVAC components that will work with their existing systems. Additionally, MES is incorporating these components into the construction of two new facilities.
When all components are in place, MES will have installed five 800kW CHP units that use gas to generate power for the buildings and generate steam that will go into existing hot water loops. A new, more energy-efficient 600-ton absorption chiller will also be installed. The unit will run off of the hot water produced by the cogeneration system and provide chilled water for cooling purposes within the buildings.
All of the new equipment will support the operation of Amneal Pharmaceuticals’ existing steam and hot water plants, as well as its central electric chiller plant. The introduction of the new cogeneration systems means that even in a full power grid blackout, Amneal Pharmaceuticals will keep running on its own native source of energy.
The Payoff
When all of the contracted systems are in place and fully operational, Amneal Pharmaceuticals will see a significant reduction in energy use throughout its facilities. Some of these savings will include:
- A 25% reduction in electric use and nearly $1.5 million in annual cost savings.
- A 2,562,300 kWh per year offset worth about $441,000 from the new chiller.
- A 200,346 Therms per year offset worth about $180,000.
- Smaller carbon footprint by reducing emissions by 9,200 tons of Co2 per year and 9.6 tons of NOx per year.
- A total annual net savings of nearly $2.5 million.
By choosing MES to provide a customized cogeneration and chiller solution, Amneal Pharmaceuticals has qualified for a number of tax deductions, grants, and incentives totaling $955,000.
