Energy and Water Consumption
The most important energy sources are natural gas, electricity and the energetic processing of our waste products (steam production, combined heat and power). Fossil fuels other than natural gas play a very minor role.
Water usage is discriminated into two main classes, industrial process water and non-contact cooling water. Essentially all cooling water cycles are closed loop systems, whereby the exchanged heat is dissipated by airflow and evaporation (cooling tower) or by river water (Visp, Switzerland).
The total energy requirement in 2016 was 10,300 Terajoules (TJ) (2,860 GWh), 6.4% up on the previous year, due to increased demand of the markets in a favorable economic environment. A significant increase in overall sales in 2016 resulted in a 2% year-over-year decrease in energy demand related to sales.
The main energy sources used by Lonza in 2016 were natural gas (40%), electricity (29%) and self-generated energy, mainly by incineration of waste (28%). Liquid, mainly fossil-based fuels, accounted for 2% of the overall energy consumption.
Continual improvement also transforms to energy efficiency improvements being realized at prouction sites throughout the year. Energy consumed to run our manufacturing processes is by far the largest contributor to our climate relevant emissions. We therefore concentrate on energy efficiency measures at all our manufacturing sites - a cornerstone in Lonza's continuous improvement effort.
Energy consumption intensity referenced to production volume (metric tons of finished goods) in 2016 was 17.9 GJ/t (up 13% from 2015); when referenced to revenues the relative consumption resulted in 2500 GJ/mn CHF (down 2% from 2015).
Reporting on water consumption is separated into "industrial water" and "cooling water".
: Water which is polluted by industrial or sanitary processes and installations and which has to be treated in own or external waste water treatment plants.
: Water used for energy transfer (cooling, heating), which is kept in a network separated from industrial water and which can be released back to receiving waters (rivers, lakes) without further treatment.
Industrial water consumption, closely related to production volume, capacity use and product mix, amounted to 7.2 million cubic meters in 2016, essentially level with 2014 (-0.4%). The peak in year 2012 is related to one site in the US with high water use, acquired in late 2011 and divested by end of 2012.
In spite of the production volume decrease (tonnage) of some percent, water consumption intensity increased and was at 12.5 m3/t of finished goods in 2016; when referenced to revenues we can report a significant decrease in relative water consumption to 1750 m3/mn CHF (-8%). Both intensities indicate the product portfolio shift towards higher value added pharma products.
Industrial water consumption of all Lonza sites active in the respective year.
All current Lonza manufacturing sites but Visp are using closed-loop cooling water systems with heat dissipation by means of airflow cooling towers. The large chemical complex at Visp (CH) makes use of the waters of the nearby river Rhone to dissipate non-recoverable heat by heat exchangers. This process is strictly regulated and monitored in order to stay within permitted heat levels to protect the river ecosystem.
All cooling water networks are fullyseparated from any industrial water networks to prevent accidental pollution of water. Total cooling water used by Lonza in 2016 amounts to 143 million cubic meters, up 7.6% with Visp participating at >99%.
In order to show trends of the cooling water use over time, unmasked by the large water volumes used at Visp, the graph shows the cooling water consumption of all Lonza manufacturing plants without the 'flow-through' sites of Visp and, in 2012, Brandenburg. Notably after the acqusition of Arch Chemicals Inc. in late 2011, the industrial water use has risen to values around 0.5 million cubic meter. We reinforced our water conservation activities where opportunities could be realized, and the decline since 2014 is remarkable.