Owens Corning

In 2006, Owens Corning (OC) invested $7.5MM in capital funds to reduce energy consumption and achieved $5.06MM in savings. Subsequently, this capital investment returned a 1.5 year simple payback. In 2007, OC is forecasting to invest $10.0MM in capital funds with $9.3MM savings in energy as a result of this investment. This capital investment is forecasted to provide a 1.1 year simple payback.

In January of 2006 OC overhauled efforts around energy efficiency in an effort to align with corporate sustainability (environmental and energy) goals. Major steps were taken to ensure funding as well as a structure and process were established to increase the energy efficiency of plants and sustain reductions in our energy footprint. Funding for capital energy projects was made available by the OC Sustainability Council. They approved $10MM per year in capital funding over a 10 year period.

The structure and process related to energy consumption also changed within OC. Energy Efficiency Leaders were established for three key divisions, the responsibilities of which include: facilitating identification, development and implementation of energy efficiency projects, as well as driving energy conservation awareness and communications within our company. A Plant Energy Leader and an Energy Team was established in each of our ISB and CSB plants internationally (including U.S., Canada, Mexico, Asia Pacific, and Europe). Plant Energy Teams now monitor plant energy consumption, identify, develop and implement projects to reduce energy, and promote energy conservation in their respective plants. Installations of main and sub-metering began in 2006 in conjunction with the 2007 implementation of a global Energy Management System, which will enable plants to view and track day-to-day energy consumption data.

In 2006, divisional and individual energy reduction goals were established and aligned to ensure adequate resources and emphasis was placed on reducing energy consumption. In 2007, these goals were expanded to divisional manufacturing support positions to ensure both short and long term projects and developmental efforts focused on energy reductions.

Plant Energy Leaders hold on-going energy conference calls 1-2 times per month, during which time the group shares best practices, new energy saving ideas, and considers alternative technologies. Detailed minutes of these calls are taken and distributed across multiple divisions and functional areas.

In 2006 OC was the first insulation company to apply for and receive a DOE Energy Saving Assessment. The first of which was conducted October 2006 in the Jackson, TN facility. Ten additional ESA’s were awarded by DOE in 2007, four of which have been completed. The ESA’s are attended by 15-20 Energy Leaders and Divisional Engineers who are responsible for applying their learning in other plants and other divisions in an effort to expand OC energy savings opportunity. The findings of all completed ESA’s will result in at least $544,000 in energy reductions once projects are fully implemented.

Two Energy Symposiums were also held in 2006 to kick-off the renewed efforts around energy efficiency. The now annual event is attended by Plant Energy Leaders, R&D, Mfg Support and Environmental Engineers. This open forum is structured to promote best practices and brainstorming across functional positions of potential energy savings and technological opportunities.

To promote energy and environmental awareness, Energy Fairs were held in three of our larger plants and our corporate headquarters in 2006. Local utilities, vendors and local environmental groups participated in an effort to promote energy efficiency at work, home, and to communicate the impact of our efforts on the environment. More Energy Fairs will be held in 2007. In support of plant awareness and best practice sharing company-wide, a variety of tools have been developed. An OC Energy Website was launched, in addition to a series of Energy Conservation Posters, 52 Energy Talking Points (work & home related facts & figures), a monthly “Watt’s Up” email distribution as well as several plant-specific Energy Newsletters.

• 2006 energy savings in megawatt hours = 163,518 (electricity & natural gas)

This energy savings represents approximately 2.5% of the 2006 MWh consumption of OC’s three major business units, Insulating Systems Business, Composite Solutions Business, and the Roofing & Asphalt Business.

• 2007 energy savings forecast = 171,833 MWh.

This energy savings will also represent a 2.5% of the 2007 energy consumption across the same three business units.