NASEO Annual Summit 2014
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1 NASEO Annual Summit 2014 Evolving Facilities Management: A Spotlight on Sustainable Production Techniques in the Southeast Nissan North America Russell Vare, Corporate Planning September 10, 2014
2 Agenda Nissan Overview Nissan Green Program 2016 Manufacturing Energy Efficiency Strategy Operational Efficiency Technical Improvement Renewable Energy Government Collaboration and Beyond Advanced Manufacturing 2
3 The Eight Sustainability Strategies Environmental, Safety, Philanthropy Quality, Value Chain, Employees, Economic contribution, Corporate governance 3
4 Nissan Green Program
5 US Manufacturing Facilities Smyrna, TN Vehicle Assembly and Battery Plant Location: Smyrna, TN Workforce: More than 8,000 Facility: 5.9 million square feet* Annual Capacity: 550,000 vehicles (334,082 as of June on track for 650,00) Vehicle Assembly Plant Location: Canton, MS Employees: More than 7,000 Facility: 4.2 million square feet Annual Capacity: 450,000 vehicles Powertrain Assembly Plant Location: Decherd, TN Employees: More than 2,500 Facility: 1.2 million square feet Annual Capacity: 1.4M engines; 1.4M crankshaft forgings; 483,856 cylinder block castings *Does not include battery plant 5
6 Corporate Carbon Footprint minimization TARGET: Reduce 20% of Operational CO2 emission (t-co2/vehicle vs. FY2005) Production Office Dealer Vehicle Material Parts Logistics Usage Recycle 4 Key strategies to reduce energy intensity and CO 2 from manufacturing 1. Operational Improvement 2. Technical Improvement 3. Renewable Energy Introduction 4. Government Collaboration 6
7 1. Operational Improvement Internal Global team to identify energy saving opportunities NESCO (Nissan Energy Service Collaboration) Best practices activity Examples Lighting Control, Casting Temp Control Air Leak Detection Squad ISO /50001 and SEP (First auto assembly plant to be both SEP and 50001) Lighting control Casting temp. control Air Leak Recovery Team 8,000 MTCO 2 Avoided ISO and SEP 7
8 2. Technical Improvement Invest in new technology e.g. lighting upgrades, VFDs Replace equipment with energy saving in mind Efficient gas boilers New construction with energy saving upfront capital Paint Plant 4, Battery plant, Decherd expansion Variable Frequency Drives New gas boilers 3-wet painting system 8
9 Energy Efficiency by Design New M274 Plant In 2013, Nissan-Decherd completed construction on a new state-of-the-art engine machining and assembly plant to support a joint venture with Mercedes. This new facility incorporates numerous energy efficient design features. Project Highlights/Features: Skylights w/ Auto Daylight Controls White Roof Benchmark Compressed Air System Heat of Compression Dryers Internally-mounted Air Houses Dedicated Metering by Department Energy Savings Benefits: Natural Lighting Reduced Cooling Requirements Free Cooling for Winter Loads Electric Demand Control Less Infiltration & Radiant Heating Energy Efficiency Control! 9
10 3. Renewable Energy Introduction Invest in low-carbon energy sources 10
11 4. Government Collaboration Government lead initiatives for industry information sharing State Tennessee Energy Education Initiative Regional Tennessee Valley Authority Federal EPA ENERGY STAR Partner of Year DOE Better Plants Industry Industry Benchmarking 11
12 4. Government Collaboration Industrial Energy Efficiency Summit 12
13 4. Government Collaboration Participating in DOE Challenge Target to reduce energy use in three U.S. plants 25% by 2020 Paint Plant target of 30% exceeded 13
14 4. Industry Collaboration Nissan Hosts Compressed Air Assessment Workshop In August 2013, the Nissan Decherd facility hosted 10 companies and organizations including: ENERGY STAR partners, suppliers, local government, and other Nissan Energy Team members to collectively assess compressed air systems. This workshop identified 80,100 MMBTU/year of energy savings ideas accounting for approximately $1,510,000! 14
15 Supply Chain Supplier Guidelines Green Purchasing Guidelines encourage efficient energy use and CO 2 reduction Survey CDP 2014 Supply Chain Program member Collaboration Engage with suppliers for energy saving opportunities Nissan 2014 Sustainability Report Nissan 2013 Supplier Conf 15
16 ENERGY STAR ENERGY STAR Partner since 2006 Sustained Excellence award 2012, 2013, 2014 Including in customer messaging Expanding to the local community Audits of TN and MS local schools ENERGY STAR brochure for home efficiency Helped 24 schools near Canton achieve ENERGY STAR cert. 16
17 Advanced Manufacturing Advanced Lithium-Ion Battery Manufacturing for US LEAF production Solar PV assisted Charging Stations with energy storage New technology applications enabled 17
18 Solar EV Charging Station Data Used batteries enable peak reduction 18
19 APPENDIX 19
20 CO 2 Reduction Strategy Based on the assumption of stabilizing atmospheric CO2 at 450 ppm*, well-to-wheel CO2 emissions for new vehicles will need to be reduced by 90% in 2050 compared to Improvement on ICEs in the short term, and EVs and FCEVs powered by renewable energy over the long term are needed. 20
21 Nissan s US Lithium-ion Battery Plant Quick Facts 1.3 Million Square Feet (67 Acre property size) Largest Lithium Ion battery manufacturing in the US All North America LEAF production Building attributes Low impact landscape, LED lighting for parking lot Translucent panels lower energy and lighting needs 21
22 Nissan Continues Support of Mississippi School Energy Efficiency Programs Energy efficiency improvements in this K-12 school district account for cost savings of up to 10 teacher s salaries in 2013! Mississippi Department of Environmental Quality October 8, 2013 Nissan has now Certified 24 Schools! 22
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