The Problem: The next challenge was to study greenhouse gas emissions from facilities. Additionally, any proposed projects had to meet the company’s internal ROI as well as be beneficial to the environment.
Strategic Recommendation: Dutko Worldwide suggested bringing together two of its clients—FedEx Corporation and Sharp Electronic Corporation—to explore the possibility of using solar on a FedEx facility as a mechanism for cutting carbon emissions and meeting the company’s environmental objectives. Sharp Electronic Corporation is not just one of the largest and well-respected consumer electronic companies, but it is also the largest manufacturer of photovoltaic cells (solar) in the world.
Dutko Worldwide began working with the U.S. Sharp Solar Division manager and the FedEx Express Environmental Management Department to identify a suitable site to explore using renewable energy power generation that would help protect the company against rising energy costs, and would work within the company’s financial parameters. Dutko Worldwide recommended investigating a site in California and specifically within the Bay Area given the political will to foster the use of renewable energy. The FedEx Express Oakland Hub, which services the west coast region, was identified as a potential possibility. The Hub is a 350,000 square foot facility at Oakland International Airport that employs 1,700 people. The facility typically handles 260,000 pieces per day, with volumes peaking at 430,000 pieces a day during the holiday season.
Dutko Worldwide received a commitment from the city to help with technical assistance on the project. Dutko Worldwide brought together the city of Oakland Mayor’s office, Sharp Electronic Corporation, PowerLight Corporation and FedEx Express to help facilitate the project. The city acted as an ombudsman between the private and public entities and provided important cost and utility data. Through the city, Dutko Worldwide and PowerLight Corporation were able to secure the Port of Oakland’s approval of the project and a commitment for streamlining the permitting process. In addition, a buy-down rebate for a portion of the cost of the system was secured for FedEx Express through the California CEC rebate program.
Results: FedEx Express will construct California’s largest corporate solar electric system atop its hub at Oakland International Airport. The 904-kilowatt solar array will provide approximately 80 percent of the peak load demand for the company’s Oakland facility, which employs 1,700 people. Completion is expected in May 2005.
FedEx’s solar generation system will cover 81,000 square feet on the roofs of two buildings. Sunlight will be converted directly into electricity by 5,769 photovoltaic modules, comprised of more than 300,000 solar cells from Sharp, the world’s leading producer of solar technology. In addition to generating electricity, the solar panels help insulate the buildings, reducing their heating and cooling costs.
Procurement of the solar panels is being facilitated through the FedEx global supply chain capabilities. FedEx Express will fly the solar cells, manufactured in Japan, -Sharp’s assembly facility in Memphis, Tennessee, to be assembled into modules.
The electricity generated by the FedEx Oakland solar electric system will be the equivalent used by more than 900 homes during the daytime. The Oakland solar project is the second major FedEx environmental innovation in California and Dutko Worldwide is working on raising the awareness of FedEx’s environmental innovations to local, state and federal policy makers.
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