Environmental Management in the Tognum Group 2007

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1 Facts & Figures Environmental Management in the Tognum Group

2 Editorial Volker Heuer, President and CEO Dear Readers, The Tognum Group companies stand for powerful and efficient propulsion and energy generation systems. We offer our customers products that, because of their superior technology, release lower levels of emissions into the atmosphere. To that end we invest Euro 130m a year in product development. Our diesel engines are certified according to stringent environmental standards. We develop heat and power cogeneration plants with gas engines and fuel cells that use renewable energies. Tognum views environmental protection as a corporate value and a decisive factor in securing a competitive advantage. We understand sustainable business as a long-term management strategy in which commercial and social imperatives are evenly balanced. Our commitment to the environment is also evident from the number of different ozone-friendly and environmentally safe production processes that we have introduced at our facilities. Our managers set an example by actively contributing to developing and expanding the appreciation of ecology and firmly embedding environmental protection in the corporate culture. Within our environmental management system, our staff takes responsibility for their own actions. This brochure tells you all about the Tognum Group s commitment to the environment, our ideas, targets and values Tognum Environmental Management 2007

3 MTU Environmental Foundation MTU Foundation fosters ecological diversity of Lake Constance As a business located directly on the shores of Lake Constance, MTU has a particular responsibility for and a long-term interest in protecting the ecological diversity of the lake environment. The company continuously promotes environmental and nature conservation projects with the aim of maintaining the life-sustaining requirements of plants, animals and the human population in the Lake Constance region. The MTU Environmental Foundation was set up for that purpose in 2004 with an initial fund of Euro 511,000. It supports research projects concerned with the flora, fauna and water management of Lake Constance, renaturalization projects or species protection schemes. At present, the Foundation is involved with the Lake Constance Fish-friendly Renaturalization project which has been ongoing since early Fish have two aims in life, explains project manager, Dr. Christoph Wittkugel, They want to eat rather than be eaten and they want to offer their own offspring the best possible chances of survival. A decisive role in that connection is played by the shoreline structure, in other words the gravel, sand and stones of various sizes and compositions. In ideal circumstances, they provide sufficient food and protection for the fish. The project is investigating over a period of two years which gravel-and-stone combinations offer the optimum survival conditions for the roughly 35 species of fish that are indigenous to Lake Constance. Two pilot renaturalization projects will provide the basis for a catalogue of recommendations aimed at future improvement of shallow water areas to better suit the needs of the fish population At MTU Plant No. 2 in Fischbach and at Hard in Austria, experimental zones with different gravel structures were constructed (1). At intervals of two weeks, the biologists fished the precisely demarcated zones and recorded the different species found and their numbers (2). Of the roughly 35 species of fish in Lake Constance, 29 were found in the experimental zones, including some endangered species such as bitterling (3), bullhead (4) and sunbleak (5). When investigating the small life forms, a previously unknown freshwater shrimp was discovered in Lake Constance lymnomysis benedeni reaches a maximum size of 1.5 centimeters Tognum Environmental Management 2007

4 Environmental Policy Guiding principles of Tognum environmental policy Environmental protection is among the fundamental corporate objectives of the Tognum Group. Our environmental management system ensures that all environmental regulations and statutes are complied with and our environmental targets are achieved. The Tognum environmental policy is summarized below. It is based on five guiding principles. More detailed information can be obtained from the contacts detailed below. 1 We continuously strive to improve the ecological balance of our products and production processes. The aim is the continual improvement of environmental protection in the Tognum Group over and above compliance with statutory environmental regulations 2 We develop environmentally sound products.. We aim to develop high-quality and environmentally sound solutions for our products and their methods of production, and act responsibly in the areas of service and after-sales 3 We design all stages of production to be as environmentally friendly as possible. We regularly assess the environmental effects of our production processes and draw from them objectives for future action 4 We aim to achieve an exemplary ecological balance worldwide. It is our aim to act in an ecologically exemplary manner at all of our locations and to continually improve environmental protection through progressive environmental management 5 We keep our workforce and the public informed. We maintain an open dialogue on environmental matters with staff, associations, and the interested public ISO environmental management system The aim of the Tognum environmental policy is to systematically embed environmental protection in management. Therefore, all locations are certified according to the ISO environmental management standard. Regular environmental audits by an independent inspectorate ensure compliance with environmental regulations. MTU Detroit Diesel Detroit site Rotorion Friedrichshafen site Charleston site MTU Friedrichshafen Friedrichshafen site Duisburg site Hamburg site MTU Italia Arcola site L Orange Stuttgart site Glatten site Wolfratshausen site CFC Solutions Ottobrunn site (and EMAS) MDE Augsburg site (planned for 2007) MTU Asia Suzhou site (planned for 2007) Tognum Environmental Management 2007

5 Interview with Joachim Coers The environmental management systems at our production facilities worldwide are certified according to uniform standards Sustainable business means achieving a balance between commercial and social demands. What is the position of Tognum with regard to environmental protection For Tognum, environmental protection is a high-ranking corporate objective. We behave in an environmentally responsible manner towards our customers and partners. Our environmental management reflects our social responsibilities. Customers in the international markets absolutely demand compliance with environmental standards in many cases, the award of a contract is directly dependent on it. What are the criteria by which Tognum s environmental management is certified It is important to us to make the environmental management of the Tognum Group companies tangible and transparent. Therefore, since 2001 we have had our production sites certified in accordance with the ISO international standard for environmental management to a uniform standard worldwide. How can worldwide uniform environmental standards be achieved We use matrix certification to define the same high environmental standards worldwide. That option is only open to companies with a standardized environmental management system. Such a system ensures that all statutory environmental requirements are met, our environmental policy is implemented and our environmental targets are achieved. We insist that our suppliers and partners comply with the applicable legislation and promote the use of environmentally friendly solutions such as water-based paints. What is the advantage of matrix certification For a group such as Tognum with a number of sites at different locations spread across the globe, annual audits at all the certified sites would entail substantial travel and preparation costs. The matrix system simplifies certification by requiring a comprehensive annual audit only at the primary sites. The other sites are inspected every three years. How is the environmental policy turned into practical action Our environmental policy incorporates guidance on practical action, starting with risk prevention. We practice active prevention to avoid accidents and disruptions in plant operation, thereby protecting our workforce against health hazards. We have a detailed risk management system for handling existing environmental risks. How do you involve your staff In order to ensure safe and environmentally sound production, we start from the basis of responsible staff who actively contribute personal effort and ideas within the environmental management system. We inform, instruct and train our employees. That means they take responsibility for their own areas. We reward good ideas for improving environmental protection as part of our Ideas Management System. Joachim Coers is Executive Vice President and CFO of Tognum GmbH as well as Executive Vice President with responsibility for Personnel, Finance and Controlling and Director of Industrial Relations at MTU Friedrichshafen. He is responsible for the Tognum Group s environmental management system Tognum Environmental Management 2007

6 MTU Safe lake water usage Some of the MTU plants in Friedrichshafen are situated directly alongside the water supply reservoir that is Lake Constance. Consequently, MTU has a particular responsibility towards the environment. One example of the environmentally safe design of production processes and installations are the safety systems that ensure that water drawn from the lake is returned in a clean condition. The heart of the new modular cogeneration plant at MTU s No. 1 Plant is an MTU 16V 4000 L61 gas engine. It delivers 1.85 MW of electrical power and 2 MW of heat output. The installation supplies around 30 percent of the factory s heat requirement and roughly 25 percent of the electricity demand. Clean and efficient energy from gas MTU is a world-leading supplier of high-speed high-performance diesel engines. On this basis it also develops gas engines for energy generation systems made by the Tognum Group company MDE. Two natural gas combined heat and power plants (CHP plants) using cutting-edge Tognum Group technology provide around a quarter of the electricity and heat requirements at MTU s Friedrichshafen site. The new power plant generates roughly 30 percent of the annual heating demand and around 25 percent of the yearly electricity requirement. The environmentally sound investment is also economically attractive as far as MTU is concerned. With an annual duty period of 7,500 hours, the CHP plant supplies 13,900 MWh of electricity and 8,800 MWh of heat a year energy that MTU does not have to buy from an energy supplier. The improvement of the emissions equation is an important environmental aspect for MTU. By combining generation of heat and power, the company uses 73 percent of the energy contained within the natural gas fuel. As a result of that high level of efficiency, there is an annual saving of 1,700 tonnes of CO 2 compared with separate generation of heat and electricity Tognum Environmental Management 2007

7 MTU Detroit Diesel Ecologically oriented modernization and green working environment MTU Detroit Diesel, MTU North American Headquarters MTU Detroit Diesel is a leading supplier of off-highway engines for the North American market. The entire campus in Redford, Michigan, where MTU Detroit Diesel has its headquarters alongside a number of other businesses, is currently undergoing extensive modernization. Investment is being focused on energy-saving building technology and energy-efficient machinery. In addition, a greener working environment has been created by new green spaces and planted inner court-yards. The aim of the initiative is to preserve industrial structures that have grown up over decades, while bringing them in line with modern environmental standards. By installing efficient thermal insulation and a modern heating system, MTU Detroit Diesel has been able to realize significant energy-saving potential. In 2005 and 2006, roughly 13 percent less natural gas was used. The modernization program also reduces environmental risks: 75 percent of the aging transformers have been replaced and virtually all underground tanks removed and approved replacements installed. Modern machinery and equipment along with new piping and heating systems save energy. The modernized buildings are illuminated throughout by low-energy lighting. Environmental Management 2007 MTU Asia Ozone protection and water treatment Singapore, MTU Asia Headquarters MTU Asia in Singapore has insulated its buildings with efficient insulation materials resulting in substantially reduced energy consumption for air conditioning. The modernized, air-cooled air conditioning system is energy efficient and uses CFC-free refrigerant. The fire extinguishing systems in the com-puter room use a gas that is not ozone-depleting. Offices and workshops at the Singapore site are lit by low-energy lighting. Activated charcoal adsorbs even the minutest traces of remaining contamination from the process water. Suzhou plant (China) to be ISO certified in 2007 ISO environmental standards were applied from the start at the Suzhou assembly plant in China to installations such as the waste water treatment system. Even water with very low levels of pollution from the test bench is treated. The water is pre-cleaned in a sedimentation tank and the virtually solid-free outflow is then chemically and physically treated, ph neutralized and finally passed through an activated charcoal filter which removes even the minutest traces of remain-ing contamination so the water meets the standards for discharge into the Suzhou industrial estate system. Balikpapan, Borneo Energy-smart Office: in Singapore a modernized air conditioning system has lowered energy consumption An engine test bench that meets stringent noise emission standards has been installed at the MTU Service Center in Borneo. Large exhaust silencers, low-noise engine cooling fans and sound insulation walls minimize noise pollution Tognum Environmental Management 2007

8 MDE Environmental Management 2007 L Orange Specialist producer of eco-friendly, gas-engine energy systems MDE is a leading supplier of gas-engine energy generation systems with electrical outputs ranging from 100 to 1,600 kw. The Tognum Group company offers complete energy generation systems providing combined heat and power (CHP) based on MDE and MTU gas engines. Due to their excellent energy equations and low emissions, CHP plants are a particularly environmentally friendly means of converting primary energy sources into electricity and heat. Other clean-burning fuels that can be used apart from natural gas include biogas, thereby making modular cogeneration plants CO 2 -neutral and independent from fossil fuels. As a supplier of efficient and eco-friendly energy generation plants, MDE places great importance on optimizing internal processes from the point of view of environmental protection. By taking part in the ÖKOPROFIT project in Augsburg, MDE is putting the Tognum environmental policy into practice. ÖKOPROFIT : 15 Augsburg businesses have produced practical solutions for industrial environmental protection with the aid of external assistance. By avoiding waste, saving water and energy and lowering emissions, the projects also save the companies money. A natural gas CHP at MDE s Augsburg facility supplies the production shed, the warehouse and the office building with efficiently produced and environmentally friendly electricity and heat. As a result, the company reduces carbon dioxide emissions by 50 percent compared with a conventional energy supply and reduces primary fuel consumption by 35 percent. Clean combustion due to highpressure multi-stage fuel injection Low Emission Advanced Design: LEAD injectors reduce exhaust emissions by nearly a third due to their injection pressure of 1,800 bar and multi-stage injection sequences. L Orange is the technological leader in fuel injection systems for high and medium-speed diesel and heavy oil engines with a per-cylinder output of between 100 and 2,000 kw. High-pressure fuel injection systems enable low exhaust emissions combined with economical fuel consumption. For the MTU Series 4000, L Orange developed LEAD injectors with an injection pressure of 1,800 bar. As a result, NO X emissions have been reduced by 30 percent. The common-rail system also reduces black and white smoke emissions and combustion noise by means of electronically controlled pre- and post-injection. The component production processes at L Orange are ecofriendly and low-cost. A solvent-free biological cleaner uses microorganisms to remove every last trace of oil residue and abrasives from the components. In comparison with solvent cleaners, it is more efficient, non-flammable and is not a potential health hazard. Biological cleaner replaces solvents: Components and tools are cleaned in special washing units at the optimum temperature for the micro organisms of 37 degrees. As a result, L Orange has been able to reduce solvent use by more than one-half Tognum Environmental Management 2007

9 CFC Solutions High-tech energy from biogas As a supplier of static fuel cell plants, CFC Solutions develops technologies for ozone-friendly and sustainable energy generation. At the heart of these energy generation systems is a HotModule based on carbonate fuel cells which converts the fuel into energy with a high degree of efficiency as much as 90 percent in combined heat and power plants. Fuels cells produce virtually zero emissions and are also ideally suited to use in noisesensitive applications such as hospitals due to their silent and zerovibration operation. A HotModule in use in a pilot project for the Böblingen regional authority is the first in the world to produce energy from biogas on a large scale. The Böblingen regional authority produces biogas from biological waste in a state-of-the-art fermentation plant. With that type of fuel, a HotModule produces 1.4 million kilowatt hours of CO 2 -neutral electricity and heat a year. The process of extracting energy from biogas releases only the same amount of CO 2 as the plants have absorbed when they were growing. Consequently, the HotModule makes a decisive contribution to reducing greenhouse gases. Winner of the "f-cell Award 2006": The extraction of energy from biogas using fuelcell technology is a ground-breaking process. In October 2006, the project received the f-cell Award for practical developments in the field of fuel cell innovation. Starting this year, the Rotorion driveshafts facility in Friedrichshafen will finish drive-shafts in a water-based paint. 62 tonnes of solvent a year will be saved as a result. Environmental Management 2007 Rotorion Driveshafts with water-based paint The MTU Friedrichshafen driveshaft production center has recently changed its name to Rotorion. The company is a leading specialist in driveshaft production. Rotorion produces and sells roughly one million driveshafts a year for cars and light commercial vehicles. The clientele includes Mercedes-Benz, BMW, Chrysler, Volvo and Ford. Due to the high production numbers, improvements to environ-mentally significant processes make a substantial difference. In 2007 Rotorion is introducing a new paintshop at its Friedrichshafen driveshafts facility which will protect finished driveshafts against corrosion with a water-based coating. In addition to improving productivity, environmental protection has been a fundamental consideration. Instead of conventional paint, the system uses a water-based product that contains only 5 percent solvent. When the new installation is working at capacity, Rotorion will reduce the quan-tity of solvent released by over 80 percent. The paintshop at the assembly plant in Charleston, South Carolina, also uses the same eco-friendly technology. The plant in Charleston, USA, assembles driveshafts for cars and light commercial vehicles for the American market Tognum Environmental Management 2007

10 Your contacts Tognum Hellmuth Moll Phone MTU Eugen Oechsle Phone MTU Detroit Diesel John Wu Phone MTU Asia Steven Ee Phone L Orange Dr. Friedrich K. von Wachter Phone MDE Anita Hoffmann-Kline Phone CFC Solutions Wolfgang Bartling Phone Content & design: Corporate Communications (VCC) Editor in chief: Toni Melfi Editor: Timo Theiner Phone: Photography and graphics: Waltraut E.Bischof, Michael Bober, Robert Hack, Büro stadt-land-see The report Environmental management in the Tognum Group is printed on paper that is 100% recycled and bears the Blue Angel environmental standards mark. Tognum AG Friedrichshafen Germany

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