No Customer Name Dan Parke For Baking (Aba) June 16 2009


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Lime Energy experience in the baking industry 2009

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No Customer Name Dan Parke For Baking (Aba) June 16 2009

  1. 1. Energy Efficiency for the American Baking Association June 16, 2009
  2. 2. The Cleanest and Greenest Energy Is Energy Not Used <ul><li>Energy efficiency is the quickest, safest, most cost-effective way to immediately reduce the emission of greenhouse gases </li></ul><ul><ul><li>Immediate </li></ul></ul><ul><ul><li>Verifiable </li></ul></ul><ul><ul><li>Economical </li></ul></ul>Lime: L ess I s M ore E fficient
  3. 3. Who Are We? <ul><li>Leading provider of energy efficiency and renewable energy design/build solutions with: </li></ul><ul><ul><li>National footprint </li></ul></ul><ul><ul><ul><li>370 employees in 14 offices throughout the U.S. </li></ul></ul></ul><ul><ul><li>Broad array of services </li></ul></ul><ul><ul><ul><li>energy engineering, lighting, HVAC, water, weatherization, renewable energy </li></ul></ul></ul><ul><ul><li>Blue-chip customer base </li></ul></ul><ul><li>Over 75 years combined experience in energy conservation and efficiency </li></ul>
  4. 4. What Do We Do? <ul><li>Design, engineer, and install proven best-of-breed technologies in existing facilities. These measures : </li></ul><ul><ul><li>Reduce direct operating expenses </li></ul></ul><ul><ul><li>Provide immediate financial results with high ROIs </li></ul></ul><ul><ul><li>Improve work space and employee productivity </li></ul></ul><ul><ul><li>Enhance the value of the facility </li></ul></ul><ul><ul><li>Reduce environmental footprint </li></ul></ul>
  5. 5. Who Do We Do It For? <ul><li>Commercial and Industrial Businesses </li></ul><ul><ul><li>Corporations, Manufacturers, Property Owners, Property Managers, Utilities </li></ul></ul><ul><li>Energy Service Companies (“ESCOs&quot;) </li></ul><ul><ul><li>Federal, State and Municipal Government Agencies </li></ul></ul><ul><ul><ul><li>US Post Office, Schools K-12, Private and Public Universities, Public Housing, Correction Facilities, Military Facilities </li></ul></ul></ul>5
  6. 6. Opportunity Lighting HVAC/ Mechanical Lime is focused on delivering high ROI energy efficiency solutions that target some of the largest energy expense line items on its customers’ P&L. Electrical Services Energy Savings Water Weatherization Renewable Energy
  7. 7. Delivery Process <ul><li>Opportunity Assessment </li></ul>Performance Period Implementation Development Origination <ul><li>Site Survey </li></ul><ul><li>Conceptual Design </li></ul><ul><li>Final Cost & Scope </li></ul><ul><li>Execute scope of work </li></ul><ul><li>Demonstrate ROI </li></ul><ul><li>Handle documentation for rebates and incentives </li></ul>
  8. 8. Multi-Site Baking Experience <ul><li>Progress to Date (Starting early 2008) </li></ul><ul><li>Completed lighting retrofits at 11 sites </li></ul><ul><li>Completed an engineering study for solar energy </li></ul><ul><li>Scheduled a detailed walk through for other measures such as compressed air, motors, heat recovery </li></ul><ul><li>Out of the 11 sites completed, the client is projected to save $500,000 per year. Retrofit costs have been $1.2 million, so overall a 42% ROI. </li></ul><ul><li>The retrofits are projected to save 5.2 million kilowatt-hours each year, which is the equivalent of taking 811 cars permanently off the road, or eliminating 9.4 million pounds of greenhouse gas carbon dioxide per year. </li></ul>
  9. 9. Lime Energy and Baking Facilities <ul><li>Overhead cost savings go right to the bottom line </li></ul><ul><li>Lighting alone is projected to save $500,000 per year on utilities and maintenance at 11 plants. These savings go right to the bottom line, so think of this as the same as selling $18 million of new product sales at a 2.75 % overall net profit margin (average of all public companies in food processing). </li></ul>
  10. 10. Other Steps Beyond Lighting <ul><li>Solar energy has a long payback </li></ul><ul><li>Other sustainability activities mentioned by customers </li></ul><ul><li>Install oven gas meters and regularly review the data </li></ul><ul><li>NOx controls on gas burners </li></ul><ul><li>NIOSH dust control measures </li></ul><ul><li>Metal detector upgrades </li></ul>
  11. 11. Why Lime Energy <ul><li>Why we win… </li></ul><ul><li>Intellectual capital and experience to identify and analyze opportunities </li></ul><ul><li>Systems and processes in place to deliver efficiently & cost-effectively </li></ul><ul><li>Strong, referenceable relationships </li></ul><ul><li>Ability to develop on a national scale but implement locally </li></ul>
  12. 12. Our Challenge as an Industry <ul><li>Promote energy efficiency as available now – no need to wait for promising new technology. </li></ul><ul><li>No matter how you measure financial merit, energy efficiency probably has the highest return on investment of anything you can do in your business. </li></ul>
  13. 13. Other Reasons Beyond Payback A warehouse operation in Seattle improved their selection accuracy from 99.4% to 99.9% after the lighting retrofit. A recent survey of 538 senior business executives and 18 in-depth interviews that “almost three-quarters (73%) of firms polled will make energy efficiency a high or moderate priority over the next two years in a bid to cut costs.” An office tower will be using their new lighting fixtures to reduce glare and avoid worker complaints – and the new fixtures will be paid for out of energy savings. A food products factory in Chicago installed the new lights when their primary customer asked them what they are doing to help the environment.
  14. 14. Energy Efficiency Today <ul><li>Building energy costs run $1.50 to $3.50 per square foot. </li></ul><ul><li>What is your energy cost per square foot? </li></ul><ul><li>Find out and track it. </li></ul><ul><li>Create a team to investigate options. </li></ul><ul><li>Act on projects that have a good return on investment </li></ul>
  15. 15. Your Energy Costs Your energy cost today does not have to be as high as it is. Make an objective Manage as if you want to reach that objective In return, you will receive two significant benefits. High ROI investment Positive public relations for yourself and your industry
  16. 16. Manage and Report Energy Costs Utility Trac from Lime Energy <ul><li>50 different customizable audits with instant alerts monitors for: </li></ul><ul><ul><li>Changes in use, occupancy or habits </li></ul></ul><ul><ul><li>Equipment or meter malfunction </li></ul></ul><ul><ul><li>Billing errors </li></ul></ul><ul><ul><li>Inefficient building operation </li></ul></ul>Potential for 3% - 5% Initial Savings Opportunity Something has changed and may need attention
  17. 17. Benchmarking Utility Usage and Costs <ul><li>Quickly identify buildings that need immediate attention </li></ul>Know where to spend time and effort ….and as important, where not to! Low-hanging fruit Utility Trac from Lime Energy is complete reporting and analysis tool for tracking, identifying trends, benchmarking, and spotting opportunities from your utility consumption patterns.
  18. 18. Seven Reasons for Energy Efficiency <ul><li>Reason number 1 </li></ul><ul><li>Don’t throw your cash in the trash </li></ul>
  19. 19. Seven Reasons for Energy Efficiency <ul><li>Reason number 2 </li></ul><ul><li>Your employees will be happier </li></ul>“ The new lights seem to have energized the workers. I have been here 20 years and I can’t say enough good things about how this went, plus it was very economical with a fast payback,” said Bill Fuson, Facilities Maintenance Manager, Orcon Aerospace Co.
  20. 20. Seven Reasons for Energy Efficiency <ul><li>Reason number 3 </li></ul><ul><li>Tax deduction </li></ul>
  21. 21. Seven Reasons for Energy Efficiency <ul><li>Reason number 4 </li></ul><ul><li>You get new stuff </li></ul>
  22. 22. Seven Reasons for Energy Efficiency <ul><li>Reason number 5 </li></ul><ul><li>Your facility is more valuable </li></ul><ul><li>“ If you look at the impact, you are getting higher rent, lower energy costs and lower vacancy costs,” says [CoStar CEO Andy] Florence. “You have three things working on the income statement to the positive. You are going to have a much higher valuation of the building.” </li></ul><ul><li>Higher Building Valuations </li></ul><ul><li>How much higher valuation? The report found that an ENERGY STAR building sold for an average of $351.60 per square foot in 2006, 30 percent higher than a non-ENERGY STAR building, which sold for an average of $270.15 per square foot. Since 2003, ENERGY STAR buildings also have been appreciating in value faster than non-ENERGY STAR buildings. </li></ul>Source: CoStar report on Energy Star performed for the US DOE
  23. 23. <ul><li>Reason number 5 (continued) </li></ul><ul><li>Net Operating Income and Value Go UP </li></ul><ul><li>Income Gross Rents Possible 100,000    </li></ul><ul><li>Other Income    3,000 </li></ul><ul><li>Potential Gross Income 103,000    </li></ul><ul><li>Less vacancy Amount    2,000 </li></ul><ul><li>Effective Gross Income 101,000    </li></ul><ul><li>Less Operating Expenses  31,000 </li></ul><ul><li>Net Operating Income   70,000 </li></ul><ul><li>Estimated Value = </li></ul>Seven Reasons for Energy Efficiency $700,000 Also, a higher NOI helps you on your debt coverage ratio. Net Operating Income Cap Rate $70,000 0.10 = =
  24. 24. Seven Reasons for Energy Efficiency <ul><li>Reason number 6 </li></ul><ul><li>Do some publicity </li></ul>Join the companies that make a point to promote their sustainability agenda to their customers.
  25. 25. Seven Reasons for Energy Efficiency <ul><li>Reason number 6 </li></ul><ul><li>Do some publicity </li></ul>Push your sustainability agenda, because if you don’t others will.
  26. 26. Seven Reasons for Energy Efficiency <ul><li>Reason number 7 </li></ul><ul><li>Make it a financial winner </li></ul>
  27. 27. Recent Industry “Green” Initiatives “ Green” Certification Programs in Other Industries <ul><li>Furniture Manufacturers Association certification program </li></ul><ul><li>DuPont Innovative Packaging Awards </li></ul><ul><li>International Initiative to “Green” wristwatch manufacturing </li></ul><ul><li>Specialty Sleep Association “Green” initiative for beds </li></ul><ul><li>Chiquita Brands wins Logistics Supply Chain award </li></ul><ul><li>“ Certified Green” programs for printing plants, auto repair shops, etc. </li></ul>
  28. 28. <ul><li>Our industry is hiring while others are firing. </li></ul><ul><li>Our installations have a payback. </li></ul><ul><li>Our product improves the air quality and fights global warming. </li></ul><ul><li>Energy efficiency makes companies more competitive. </li></ul><ul><li>Significant federal money is available to our industry. </li></ul><ul><li>Our installations provide benefits beyond simple payback. </li></ul>The Future of Energy Efficiency