ACTAVIS UK INDEPENDENT FEASIBILITY STUDY: Risks and opportunities from CHP

Actavis UK is a top 10 UK pharmaceutical company with one of the largest manufacturing sites in the UK providing a portfolio of products spanning prescription medicine and consumer healthcare brands Building services include HVAC, compressed air, steam, DHW and purified water. Energy is also used for production and packing as well as for the general office environment.

Challenge:  Independent feasibility study of Combined Heat & Power (CHP) plant 

The Actavis Group was acquired by Watson Pharmaceuticals to create the world’s third largest generic pharmaceutical company, and uses approximately £1m of energy and water per annum at its plant in North Devon. Heat is extensively used throughout the year within the manufacturing process and for space heating. With the CRC adding increased cost to utilities and a potential site expansion project on the horizon Actavis wanted to review the business case for investing in a CHP plant. An investment in a large steam CHP plant would be considerable so Actavis turned to C3 Resources for an independent report rather than inviting a CHP manufacturer in to make an assessment.

Thinking: Complex study to produce clear guidance on investment

A complete review of all steam and LTHW boiler heat profiles and transformer load profiles were set against CHP data before running a series of ‘what if?’ scenarios to optimise the size of CHP solution. Forecast models for the cost of gas and electricity were then prepared and loaded into the analysis.   C3 presented their independent findings along with clear recommendations to Actavis.

Results:  Certainty on when to invest and at what level

Thorough independent modelling using C3’s C3ntinel software has provided the necessary information to build a strong business case where Actavis has a clear understanding of the risk factors and how they can influence payback. As a result, Actavis know how and where a major CHP investment can be integrated into future plans.