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Eco-Innovation icon Eco-Innovation and Eco-Efficiency icon Eco-Efficiency:
Capsugel

Capsugel is reporting in two categories. View the Eco-Innovation and Eco-Efficiency case studies.

icon Eco-Innovation
Capturing Steam to Save Energy

Key Environmental Performance Areas:

  • Greenhouse Gas Emissions (Facilities)
  • Energy Use (Services)

Avoided costs by not investing in new boilers.

Significantly reduced CO2 emissions.

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, NOX, 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.


i U.S. Energy Information Agency. "How much energy is consumed in the world by each sector?" 7 January 2015. Web. 22 April 2016. http://www.eia.gov/tools/faqs/faq.cfm?id=447&t=1%20.

ii Brueske, S., Sabouni, R., Zach, and Andres, H. U.S. Manufacturing Energy Use and Greenhouse Gas Emissions Analysis. November 2012. Web. 21 April 2016. http://www.energy.gov/sites/prod/files/2013/11/f4/energy_use_and_loss_and_emissions.pdf.

iii Self-reported portfolio company data is not calculated, reviewed or independently verified by KKR or KKR Capstone. For more information regarding the results methodology for companies evaluating their own data, please see the methodology section. There is no guarantee that any GSP-related avoided costs or added efficiencies will positively impact the portfolio company’s valuation or performance.

Portfolio company data represents 2016 results, published in November 2016. This case study may contain forward looking statements including descriptions of planned projects and projected results and savings. These statements are subject to the risk that the projects will not develop as planned or at all or that projected results and savings are not realized.

icon Eco-Efficiency
Managing Manufacturing Impacts

Key Environmental Performance Areas:

  • Greenhouse Gas Emissions (Facilities)
  • Waste Generation (Facilities)

Avoided approximately 11,600 metric tons of greenhouse gas emissions since 2011.

Increased waste recycling rate by 53 percent since 2011.

Recycled 13,500 tons of waste since 2011.

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.

GHG Efficiency (2011 Baseline)
ESTIMATED RESULTS 2012 2013 2014 2015 TOTAL
Avoided GHGs (metric tons) 2,000 2,700 3,800 3,100 11,600
Avoided costs $660,000 $1,420,000 $1,510,000 $1,750,000 $5,340,000

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.

Waste Efficiency (2011 Baseline)
ESTIMATED RESULTS 2012 2013 2014 2015 TOTAL
Avoided waste (tons non-recycled waste) 990 1,500 410 610 3,500
Recycled waste (tons recycled waste)v 2,500 3,200 3,200 3,100 13,500

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.


i U.S. Energy Information Agency. "How much energy is consumed in the world by each sector?" 7 January 2015. Web. 22 April 2016. http://www.eia.gov/tools/faqs/faq.cfm?id=447&t=1%20.

ii Brueske, S., Sabouni, R., Zach, and Andres, H. U.S. Manufacturing Energy Use and Greenhouse Gas Emissions Analysis. November 2012. Web. 21 April 2016. http://www.energy.gov/sites/prod/files/2013/11/f4/energy_use_and_loss_and_emissions.pdf.

iii Reported results are based upon data provided by the portfolio company, and have not been reviewed or independently verified by KKR or KKR Capstone. KKR may calculate the figures presented in an effort to ensure calculation methodologies are consistently applied across companies in the Eco-Efficiency category. For more information regarding KKR’s calculations, please see the methodology section. There is no guarantee that any GSP-related avoided costs or added efficiencies will positively impact the portfolio company’s valuation or performance.

iv Reported results are based upon data provided by the portfolio company, and have not been reviewed or independently verified by KKR or KKR Capstone. KKR may calculate the figures presented in an effort to ensure calculation methodologies are consistently applied across companies in the Eco-Efficiency category. For more information regarding KKR’s calculations, please see the methodology section. There is no guarantee that any GSP-related avoided costs or added efficiencies will positively impact the portfolio company’s valuation or performance.

v Due to KKR’s results communication methodology, the baseline year recycled waste of 1,600 tons in 2011 is not shown in the table, but is included in sum in the “total” column, which explains why the sum of the displayed years does not equal the amount reported in the “total” column.

Unless otherwise noted, portfolio company data represents 2015 results, published in August 2016. These case studies may contain forward looking statements including descriptions of planned projects and projected results and savings. These statements are subject to the risk that the projects will not develop as planned or at all or that projected results and savings are not realized.