Launch of Sustainable Energy Ireland Awards 2007 Musgrave Group Head Office Construction Project Winner: Best Renewable Energy Project 2006 Heritage Hotel, Portlaoise 7 th February 2007 John Curran, Group Environmental Executive

Musgrave Group Founded in 1876, Private Company, Family and Employee Owned Active family involvement; Chairman and 3 Directors Distribution and Franchise Business based in Ireland Operating in Ireland, UK and Spain Turnover 2006, ca. €5.0 Billion Estimated 25% share of retail trade in Ireland > 2500 retail stores, >25 Distribution Centres and Wholesale premises 40,000 direct/indirect employees.

The Building Musgrave House, floor-area 2000M 2 Annual Electrical Consumption 200,000kWh Group head-office departments including; Finance Information Technology Commercial Human Resources Group Board Directors. Headcount approximately 80 people.

The Challenges Project aimed to: design and build an energy efficient office building achieve the lowest possible emissions of CO 2 and other Greenhouse gases, Employ both active and passive means. Demonstrate our commitment to sustainability as defined in our policies on: –Environmental and Social Accountability –Energy and Natural Resources Management Deliver economic and environmental benefits

3 Basic Design Principles To minimise the building’s carbon footprint by: 1.Reducing the energy requirement through better (passive) design in the first instance 2.Giving preference to renewable energy in addition to the above requirements 3.Improving efficiency and optimising energy use.

1. Reducing Energy Requirements Alignment of the building so as to make best use of available shelter from the prevailing south-westerly winds Increased insulation thicknesses in exterior cladding High specification (low u-value) double glazing to reduce heat losses in winter Shading to reduce solar gain in summer Internal layout of offices and the use of a central atrium so as to maximise the use of ambient daylight in offices and public spaces.

2 Giving Preference to Renewables Opted for a 160kW Geothermal Heating Ventilation and Air-conditioning (HVAC) System –accesses renewable solar energy contained in ground water on site through 12 circulation coils contained in 150 metre-deep vertical boreholes. Chose a 6.5kW solar/thermal water heating system –incorporates roof mounted panels to provide all of the building’s hot water needs and which is connected to a storage system with a mains back-up heater if required.

3. Efficiency and Optimisation Intelligent automatic lighting control system including; –Occupancy sensors –Ambient daylight level sensors –Energy efficient fittings and lamps Controls to prevent unnecessary use of energy or simultaneous heating and cooling A building energy management system to control energy use and operational performance. Integration of the building into Musgrave Energy Monitoring and targeting Programme

The Business Case The additional ‘greener’ features increased the building’s construction budget (+6.0%), however, Musgrave Group Board approved the capital allocation on the basis that the design would: –Reduce energy demand and GHG emissions during the building’s life-cycle –Lower the building’s operating costs –Articulate Musgrave values and our position on the Sustainability –Promote Sustainable energy by example

Benefits of design features controlling heat loss/gain characteristics, allowed us to reduce the capacity of the geothermal system needed to achieve optimum comfort levels, thereby reducing energy demand further the HVAC system uses fresh outside air, unlike many conventional re- circulating air-conditioning systems Air entering the AHU is heated or cooled only as required taking ambient conditions into account Additional ‘trimming’ of temperature can be carried out locally by ceiling mounted cassette units

Consumption and Emissions Energy Source 1000 kWh CO 2 Emissions tonnes TypicalPlannedActualTypicalPlannedActual Oil Electricity Total Reduction Reduction % 48%75% 27%65% Oil=0.264kg CO 2 /kWhElectricity=0.624kg CO 2 /kWh

Performance

Green Electricity 2007 Our recent Green Electricity Deal with Energia means that the building’s emissions will effectively be Zero, saving almost 125 tonnes of CO 2 per annum and an additional 13,500 tonnes in our other facilities.

Heating and Cooling System Efficiency Comparisons Assumptions: Heating demand 30 weeks and cooling demand 22 weeks of each year Design heating and cooling load 160kW for 12 hours a day, 5 days a week Geothermal efficiency 4 to 1, so 40kW input delivers 160kW output Conventional A/C efficiency 2.5 to 1, so 64 kW input delivers 160kW output

‘Conventional’ System Operating Costs Oil Heating: 160kW X 12 hours X 5 days X 30 weeks X €0.055/kWh= €15,840 p/a (1litre of heating oil is = 10.85kWh and costs around €0.60/litre) Conventional A/C: 64kW X 12 hours X 5 days X 22 weeks X €0.13/kWh= €10,982 p/a ‘Conventional’ system total=€26,822 p/a

Geothermal System Operating Costs Heating: 40kW X 12 hours X 5 days X 30 weeks X 0.13/kWh= €9,360 p/a Cooling: 40kW X 12 hours X 5 days X 22 weeks X 0.13/kWh= €6,864 p/a Geothermal system total = €16,224 p/a Heating/Cooling savings are around €10,598 p/a

Project summary Project agreed Dec 2004 ‘Green’ features proposedFeb 2005 Board approval for extra costsMar 2005 Local Authority planning approvalApril 2005 Construction commenced June 2005 Construction completed/Building occupied June 2006 Project duration 18 months Total project cost approximately €4.6M, Additional Energy systems €280k

The End Result Open Windows

Conclusion Project demonstrated that: with proper planning and an enlightened approach, it is possible to develop more sustainable buildings & the resultant additional expenditure can be more than recovered over the lifetime of the building. So was it all worth the effort?

Most definitely!!!

Thank You