A business case for airports and aviation professionals to adopt environmental and energy-efficient strategies.

1. The Profit Potential of Green Airport Strategies
Airports Conference of the Americas
July 20, 2008
Jawad Rachami
Wyle Laboratories, Inc.

2. How Green Got Our Attention?
Melting Ice Caps
• The graphic
evidence of
climate change
has been on
display
• BUT popular
concern did not
translate into
aggressive
action.

3. How Green Got Our Attention?
Global Oil Prices 1999-2008
• Rising fuel
prices have us
now at full
attention
• Betting on
cheap oil is not
a sustainable
business
strategy.

4. Does Money Grow on Trees?
Lower Operating Costs –i.e.,
– Energy efficiency (Green Technology & Practice)
– Penalty avoidance & project offset credits in a Cap & Trade
system
Cost-Cutting
Expanded Revenue –i.e.,
– Expanded capacity (Attract more energy-conscious airlines and
clear environmental constraints for capital improvement projects)
– Tradable commodities: Carbon credits Branding Revenue
New Investments –i.e.,
– Private sector carbon credit investments
– Govt. grant projects (Infrastructure development, Investment
equipment/vehicle conversions, workforce training, process
improvements)
Enhanced Branding –i.e.,
– Consumer (Traveler) Confidence / Preference
– Market appeal / Image (buzz & novelty)

5. Green as a Cost-Reduction Strategy
Challenges Opportunities
• A sizeable portion of airport operating budget goes to cover •High-performance HVAC
energy costs systems
• Most airports do not have a dedicated energy performance •Digital power Control
and monitoring program systems
• No standard energy performance metrics that conform with •O&M optimization
uniqueness of airport facilities
• As much as 20% of airport cooling & heating energy is wasted •Ground Support
Equipment
• Underutilization of low-cost operational improvements and
retrofits •Water treatment system
upgrades
• On-site renewable energy and
power co-generation rare at airports •On-site renewable
energy

6. Energy Performance by Airport Size
• Small airports are least
Small Airports
efficient in terms of
energy cost per Ft2 (90%
higher than medium-size
airports)
Medium Airports
• Medium Airports have
least utility expenditure
per Ft2.
Large Airports
• Large airports require
least energy expenditure
per enplanement Overall
(economies of scale)
• ALL require energy 0 1 2 3 4
efficiency improvements
Utility Costs/ft2 Energy Costs/ft2 Utility Costs/Enplanement
Energy Costs/Enplanement Enplanement/ft2
* According to a new study released by the Airport Cooperative Research Program (ACRP) of the US Transportation Research Board (TRB)

7. Green as a Cost-Reduction Strategy
Green Better equipment Operations &
= Energy cost
Technology &
savings + performance + Maintenance
Best Practice monitoring optimization
• Energy-related Best Practices can produce up to 15% of whole building
energy costs
• Green building recommissioning can produce up to 25% of whole
building energy costs
• Green technology retrofits can produce up to 20% of whole building
energy costs
* According to a new study released by the Airport Cooperative Research Program (ACRP) of the US Transportation Research Board (TRB)

8. A Case in Point: Dallas-Fort Worth
Airport
• New Computerized Maintenance Management System (CMMS)
incorporating energy monitoring and process review functions
• Aggressive 5-Year facility recommissioning and optimization
program.
• Operational improvements to vehicle fleet and GSE conversion
• Air Cooling & Heating System Replacements and new Digital
Controls
• New Thermal Energy Storage System - reduced energy
consumption during peak hours by 77% or $300K annually.
• Operational and lighting improvements in Terminal B produced
energy savings of 17%.
“Responding to the events of September 11…we needed to cut costs” So, “DFW implemented a $122M plan
to upgrade the Energy Plaza, convert our vehicle fleet to alternative fuels and…implement energy saving
protocols at Terminal B and the Rent-A-Car Center.” Jim Crites.

9. Green as a Revenue-Building Strategy
1. Environmental constraints (Noise and Air Quality) are the biggest obstacles to
airport expansion and traffic growth.
– A Green approach can clear regulatory hurdles (i.e., NEPA, potential EPA GHG limits); and
– Incentivize air carriers to accelerate transition to new generation aircraft.
…anticipating regulatory change…
2. In a Cap & Trade System:
– Units of carbon are tradable commodities
– A cap can only be enforced through penalties
– World Bank estimated the carbon market at $64 billion in 2007
3. In a Baseline & Credit System:
– Can create credits by reducing carbon emissions below a baseline
– Credits can be purchased by polluters who have a regulatory limit

10. Carbon Markets
• Two Markets: Mandatory and
Voluntary
– Mandatory markets: Kyoto
Protocol's Clean Development
Mechanism and European Union
Emission Trading Scheme (EU ETS)
– Voluntary Markets in US, Australia,
Japan
• EU ETS allows import of
emissions reductions via Joint
Implementation (JI) and Clean
Development Mechanism (CDM)
projects
• Mandatory markets valued at $64
billion in 2007

11. Carbon Markets
• More than 400 million metric
tons of CO2 are exchanged
through projects annually
• Voluntary carbon market is a
small part of all carbon
buying and trading: $331M in
2007

12. Green as an Investment Strategy
• Government programs:
– FAA’s Voluntary Airport Low Emissions Program
(VALE): $6.2M in AIP grants in FY07.
– DOE & EPA Building Performance programs
Joint Other Voluntary
Implementation $265M
• Investors searching for project offsets $499M
to trade
– Joint Implementation (JI) and Clean Development
Mechanism (CDM) projects
Secondary CDM Primary CDM
$7.4B
– I.E. Airlines looking for offsets to their carbon in $5.5B
EU may invest in project offsets at airports
elsewhere

13. Project-Based Carbon Trading
Project Host Emission Reduction buyers
• Companies or Govts implementing
GHG mitigation projects – i.e.:
• Renewable energy • Companies, Govts and others buy
• GSE Conversion ERs ERs from project activities
• Etc.
• Some ERs go to satisfy mandatory
• Mitigation Projects create obligations
Emission Reductions (ERs) in
equivalent metric tons of CO2 • Others buy ERs to apply towards
$$ voluntary commitments
• Project hosts sell ERs to finance
project activities

14. Green as an Branding Strategy
• Green brand fulfills goal of Corporate
Social Responsibility (CSR)
• It creates goodwill and enhances market
image / reputation
• Global corporations (i.e., GE, Toyota)
have pursued and marketed Green
brands
• Airports (i.e. DFW, AMS) are embracing
the concept

15. Green is Primed to Launch
Boosters / Galvanizing Factors – i.e.:
• Serves public good,
• Delivers positive socioeconomic impact
5. Is it “cool”? Does it have innovative quality and Novelty
generates market “Buzz”?
Socioeconomic benefits
4. Does it reliably fulfill intended functions? Reliability
Public Good
3. Is it market accessible? Availability
2. Is it useful? Does it effectively address need &
necessity? Utility
1. Is the product / service needed? Necessity

16. A Case in Point: Abu Dhabi Airport
• A First: Airport City of 6
square kilometers to be
carbon neutral
• Announced in 2008 a $2
billion investment in solar
technology.
“We're serious about this. We're going to put so many resources to do it right. And this is the
ideal place where you can demonstrate what you believe in a meaningful scale.quot; Khalid Award,
Program Manager.

17. Overview: Money does grow on trees
• Green technology and best practices help airports realize operational
efficiencies and reduce costs
• Green strategies create opportunities for new revenue streams and
prepares airports for new regulatory requirements
• New Green markets are creating new possibilities for investment in
capital improvements, technology adoption, and process optimization
• A Green marketing approach fosters consumer confidence and
creates market ‘buzz’.