Best Contribution to Corporate Responsibility Growing Heathrow Sustainably Dianne Sanders Senior Procurement Manager

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1 Best Contribution to Corporate Responsibility Growing Heathrow Sustainably Dianne Sanders Senior Procurement Manager January 2013

2 Introduction

3 Background Terminal 2 construction programme Large energy infrastructure project biomass CCHP Delivering heat to T2, T5 and CTA Contribute to reducing CO2 emissions by 34% by 2020 Requires circa 25,000 tonnes wood fuel per annum

4 Objectives 1. An end to end sustainable supply chain 2. An innovative long term supply agreement 3. Competitively priced fuel against gas and electricity

5 Wood Fuel Supply Chain Stacking & Drying Cutting Loading In the Round (Woodlands) In a Hub Chipping Delivery & Unloading Fuel CCHP at the Energy Centre Replanting

6 Timber Product Usage Heathrow wood chip Pallets and fencing Furniture and flooring

7 Planning and Execution The sustainability of this supply is ensured by both Heathrow s careful selection of supplier and the UK s Forestry Regulations Matthew Woodcock, Forestry Commission Tender EU Utilities Directive Negotiated procedure allows for innovative solutions 15 year contract security of supply Timber industry an evolving market Significant stakeholder & designer engagement Market research - Carbon Trust and Forestry Commission

8 Planning and Execution Sourcing & haulage strategies Material transfer solution Fuel monitoring & restocking Certification of fuel weight Process for quality control Cleanliness of storage area Removal & disposal of wood ash Comprehensive Sustainability Questionnaire

9 Innovation and Creativity Contract awarded to LC Energy Deliver within 100 mile radius of Heathrow Target 75% within 50 mile radius reducing haulage & emissions Job creation & job security, business stability and expansion in local community and rural areas As a local businessman, I welcome initiatives such as the Heathrow biomass project as it has given stability to my business and has already allowed me to employ one additional worker Robin Quinton, Felledwood Transport Manager

10 Innovation and Creativity Contract with 59 estates in SE England Regenerate undermanaged woodlands Improves biodiversity making forests a haven for wildlife Restoration of ancient woodlands Education through tree planting workshops Non-native: US Red Oak Turkey Oak Native: English Oak We are proud to be part of a large scale project with Heathrow who have shown courage and innovation in making the decision to use this energy source Adam Curtis, Richmond Park Assistant Manager

11 Best Practice Focused on Heathrow s sustainability commitments: Reduce CO2 Minimise waste Manage biodiversity responsibly to protect local habitat Economy & Society Guidance through Carbon Trust & Forestry Commission Organisational Benefits Cost effective Security of Supply Low carbon Efficient energy solution 100% of ash recycled (income) The Heathrow investment in wood fuelled CCHP represents a major development for the woodlands in southern England. In providing a market for lower quality wood it provides the economic driver for environmental gain. Matthew Woodcock, Forestry Commission

12 What difference has the CIPs Award made to Heathrow? The award was in recognition of an excellent tender process, pushing boundaries and innovation through a complex process to achieve highly measurable and sustainable results. External recognition for this project Raised profile of Heathrow s commitment to sustainability Internally provided more focus & attention to the project The CIPS award for CSR demonstrates that we take sustainability extremely seriously. The tender process sought to achieve a sustainable end to end supply chain for the wood fuel and LC Energy was awarded the contract based on their focus on sustainability, innovation and proven ability to work on large projects. This is a very exciting contract delivering sustainable benefits to the local community as well as Heathrow. Dianne Sanders, Senior Procurement Manager (Wood Fuel Magazine Nov 2012)

13 Thank you for listening Any questions?

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