Manufacturers have been selling more energy efficient products for years, while finding ways to cut energy bills in internal processes. A leading manufacturer recently slashed its utility bills by 84% at its 250,000 square foot facility in New Jersey with a 2.77 megawatts photovoltaic setup. This facility is now producing more than 100% of the electricity needed to operate, making it a net-zero manufacturing facility. This is considered the largest solar installation in the state operated by a privately-held company, making this the only material handling manufacturer in the world to build its entire product line using electricity derived from 100% renewable sources.

1. OPEX: Achieving Net-
Zero in Manufacturing
Today’s Facility Manager
April 2014, pages 28-32

2. Session Participants
• David Stevens, Speaker
President & CEO
OPEX Corporation
Dave Stevens is President and CEO
of OPEX Corporation, a recognized
global technology leader in high-speed
mailroom automation, document
imaging, and material handling. Dave
assumed leadership of OPEX, a
private, family-owned business, in
April 2011. Dave is responsible for
setting the strategic direction of the
company and ensuring that OPEX
Values and Principles are
implemented at every level throughout
the company and reflected in its
corporate culture.
• Jeff Hedges, Moderator
President
OPEX Material Handling
Jeff Hedges, President of OPEX
Material Handling, is a seasoned
professional with over 27 years of
experience in the material handling
industry. Jeff possesses a unique and
informed perspective on logistics and
supply chain market trends and
practices. Over the course of his
career, Jeff has worked at Dematic,
HK Systems and Retrotech before
coming to OPEX.

3. Jeff Hedges
President
OPEX Material Handling

4. Consulting Firm, Frost & Sullivan
“Sustainability solutions are being
implemented by business corporations,
industrial manufacturers and service
providers across a broad range of industries.
In the material handling industry, not only are
manufacturers embracing internal changes to
contribute to a better environment; they also
have found a way to incorporate the concept
into the design of the products they make,
enabling end users to achieve their own
sustainability goals as well.”
http://news.thomasnet.com/IMT/2011/08/16/the-state-of-sustainability-in-
material-handling-industry-2011/

5. Sustainability in Material Handling
• Social responsibility
• Financial benefits
• Customer loyalty
– Increasingly, customers are
demanding it
• Wal-Mart requires its
suppliers to evaluate and
disclose the full environmental
costs of their products
• Competitive advantage:
Key factor in a recent Material
Handling technology sale for
OPEX

6. Dave Stevens
President & CEO
OPEX Corporation

7. OPEX Corporation
Headquartered in Moorestown, New Jersey
• Established in 1973, Family
owned, privately-held
• Global leader in high-speed
mailroom automation, document
imaging, and material handling
• Thousands of customers
worldwide in financial services,
insurance, healthcare,
government, non-profit, utilities,
telecommunications, education,
retail and others
• Every product is designed,
engineered, manufactured and
tested in the U.S. by dedicated
OPEX employees

8. Our Green is Growing
• Since 2012, OPEX has derived 100%
of the electrical energy needed to
operate its 250,000 square foot
manufacturing, distribution, and
administrative complex from solar
• OPEX is now effectively a net-zero
user of electrical power derived from
traditional energy sources
– A net-zero building is one that generates as
much energy as it uses over the course of a
year
• Largest solar installation by a privately-held
company in the State of New
Jersey
• Every OPEX product is now
manufactured using 100% renewable
energy

9. Key Project Drivers
Stewardship of the Planet
• Energy efficiency is a key factor in our purchasing
decisions
– High efficiency lighting retrofits throughout campus
– Installed white reflective single membrane energy smart
roofing
– HVAC automated energy management system
– Installed highly efficient Xlerator hand dryers in 20 bathrooms
throughout campus along with motion sensor lighting
• 95% cost savings versus paper towels, and uses 80% less
energy than conventional dryers
– Over 26 tons of recycled paper, plastic, and glass in first year
• New 41,000 SF manufacturing facility integrated into our
green footprint
– 100% LED lightening inside and out (parking)
– State-of-the-art highly efficient HVAC system with automated
energy management system
– Installed high R-value roofing insulation

10. Key Project Drivers
Stewardship of our Finances
• Attractive rates for solar
renewable energy credits
(SRECs) at the time
• 30% rebate offered by the
federal government
(no longer available)
• Significant reduction to
operating costs (utilities)

11. How it Works
http://www.homesolarinfo.com/how-does-solar-power-work.html

12. Project Goals
• Project designed to
generate 100% of the
electricity needed to run
total operations (2.77
million kWh) over the
course of 12 months
• Designed for an
operational 25 year
lifespan
• 1% decrease in efficiency
per year

13. Design/Build Contractor
H2 Contracting, a Division of Hessert Construction
H2 Contracting of Marlton, New Jersey
Mark Heenan, LEED AP and President
Provided construction management and general contracting services
Focused on renewable energy and sustainability projects – technology, costs, schedule, etc.

14. Project Scope
• 2.77-megawatt solar rays
to electrical energy
installation, which is
consumed onsite and
“sold” back to the grid
– 8,373 solar panels, each
capable of producing up to
250 watts of electricity,
installed on the roofs of
both buildings
– Three acre solar field array
– Two parking pavilions

15. Project Scope
• Two charging stations located under the parking
pavilions, which produce enough energy to power
employee and customer electric and hybrid
vehicles at no cost to the user

16. So, Exactly How Much is 2.77 MW?
• Equivalent to eliminating the
carbon emissions of 355
mid-sized vehicles annually
• Enough to meet the power
consumption needs of 1,500
homes in a single year
• Carbon offset equal to
planting 47,598 tree
seedlings and letting them
grow for 10 years

17. Real-Time Online Monitoring

18. Unforeseen Factors & Challenges
• Protracted township permitting process
• Dramatic decline in the price of Solar Renewable
Energy Certificates (SRECs)
– $650 per credit at start of project – About $150 presently
• Contractor selection process
• Soil erosion, trees, and security issues
• Fire prevention issues
• Utility distribution fee
• Solar does not preclude power outages

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