Challenge

The industrial sector accounts for approximately half of global energy use and produces approximately 1.3 billion metric tons of greenhouse gas emissions annually.^i,ii Manufacturers can manage their energy consumption and waste production, as well as associated costs and environmental impacts, by improving the efficiency of their facilities and production processes.

Capsugel designs, develops and manufactures a wide range of innovative dosage forms for the biopharmaceutical and consumer health and nutrition industries.

Manufacturing hard capsules is an energy-intensive process with energy costs representing a significant portion of the total cost.

Response

Capsugel developed its innovative Colmar Green Steam Project at its hard capsule manufacturing facility in Colmar, France to better manage greenhouse gas emissions and energy consumption.

Capsugel’s Colmar manufacturing facility has historically used three natural gas boilers to generate steam. As two of these boilers were approaching end-of-life in 2014, Capsugel reviewed various options to replace and/or improve the steam-generation process.

The city of Colmar has two incinerators for burning non-recyclable waste. Steam produced by these incinerators is used for heating public buildings and social housing. During mid-season and summer, steam from the city’s incinerators is not required and is discharged into the atmosphere.

Capsugel identified an opportunity to use this steam – which otherwise would be wasted – for its own consumption. Working closely with Engie-Cofely, the site maintenance contractor, Capsugel developed a ground-breaking vaporisation unit capable of converting city steam into site steam for its manufacturing facility. In parallel, Capsugel collaborated with the French government environment agency ADEME and the city of Colmar to connect the city grid to Capsugel and signed a ten-year contract.

Resultsⁱⁱⁱ

The Colmar Green Steam project generates environmental, social, and economic benefits for both Capsugel and the Colmar community.

• Capsugel’s Colmar plant will obtain a significant portion of its annual steam needs from the city with no additional greenhouse gas emissions from Colmar city incinerators. This is expected to reduce Capsugel’s energy costs and improve its carbon footprint.
• Removing the existing boilers at the Capsugel site creates a positive environmental impact by reducing greenhouse gas and air emissions, including SO₂, NO_X, CO, Dust, and CO₂.
• The city of Colmar generates a revenue stream, which benefits the local community.

Capsugel began participating in KKR’s green program in 2012 and is communicating results for the second time. For more on Capsugel’s sustainability efforts, visit its website.

Challenge

The industrial sector accounts for approximately half of global energy use and produces approximately 1.3 billion metric tons of greenhouse gas emissions annually.^i,ii Manufacturers can manage their energy consumption and waste production, as well as associated costs and environmental impacts, by improving the efficiency of their facilities and production processes.

Capsugel designs, develops and manufactures a wide range of innovative dosage forms for the biopharmaceutical and consumer health and nutrition industries. Capsugel has focused on improving the efficiency of its facilities and production and has tracked the results of these efforts.

Response — Greenhouse Gas Emissions (Facilities)

In 2015, Capsugel measured and managed global energy consumption in its hard capsule production facilities against a 2011 performance baseline. Capsugel achieved its greenhouse gas (GHG) emissions results by implementing the following practices in 2015:

• Installed new cogeneration plant at its facility in Bornem, Belgium.
• Replaced two old boilers with a new larger and more efficient boiler at our facility in Colmar, France.
• Installed new heat exchangers and maximized free heating and cooling opportunities, improving the efficiency of process heating, ventilation and cooling (HVAC) systems.
• Implemented lighting upgrades, which included changing to LED lamps.

Results — Greenhouse Gas Emissions (Facilities)ⁱⁱⁱ

In absolute terms, GHG emissions from these facilities increased approximately 22 percent compared with a 2011 baseline, due to increased capsule production and a shift to specialty polymer capsules to meet rising customer demand. However, the company’s efficiency in this area has improved approximately 2 percent (GHGs/1 mil capsules) during the same period. The improvements in efficiency have helped Capsugel to avoid more than $5.3 million in costs and 11,600 metric tons of GHG emissions since 2011.

Response — Waste Generation (Facilities)

In 2015, Capsugel measured and managed waste production and recycling in its hard capsule production facilities against a 2011 performance baseline. Capsugel worked on reducing its waste and increasing recycling in 2015 as it:

• Continued to explore waste recycling options for process waste.
• Improved waste sorting arrangements and raised employee awareness to improve recycling.

Results — Waste Generation (Facilities)^iv

In absolute terms, non-recycled waste produced from these facilities increased approximately 3 percent when compared with a 2011 baseline. This is due primarily to a reduction in demand for products that utilize recyclable process waste, increased capsule production to meet rising customer demand, and a shift in demand towards specialty polymer products that have limited identified recycling outlets. The company’s efficiency in this area has improved approximately 17 percent (ton non-recycled waste/1 mil capsules) during the same period. Capsugel’s waste recycling rate (waste recycled/production volume) also increased approximately 53 percent, and it recycled more than 13,500 tons of waste since 2011.

Capsugel began participating in KKR’s green program in 2012 and is communicating results for the second time. For more on Capsugel’s sustainability efforts, visit its website.