Intel grants in Massachusetts promote water reuse and conservation projects. Air-Handler Optimization Makeup air handlers (MAH) serving fabrication facility cleanrooms are the single largest consumers of energy among systems at Intel facilities. In 2004, we established a MAH optimization project team to focus on savings in this area. The team succeeded in saving $600,000 in 2004 by optimizing air-handler operations, decreasing power use by 4 million kWh of electricity, and saving 90 million cubic feet of natural gas in our Oregon fabs alone.

Driving Water Conservation into New Factories Water Conservation in Our Communities

Energy Reduction and Climate Change Recycling That Hits the Bottom Line

Driving water conservation into new factories
Intel engineers are always searching for potential water conservation opportunities. Our Arizona site has identified opportunities to build on past operation successes as operations grow. The use of technologies such as reverse osmosis (RO) and advanced evaporation allows the site's new Fab 22 Ultra Pure Water (UPW) system to operate as one of our most efficient treatment facilities, producing approximately 0.85 gallon of UPW for every gallon of fresh city water. These technologies have also resulted in more than 2 billion gallons of purified water returned to the aquifer by Intel, in support of a key City of Chandler effort to assure enough water to meet the needs of its citizens and businesses for years to come.

Looking forward, we are planning new initiatives to share the knowledge we have gained in water conservation with our local communities. To sustain this resource in the face of rapid urbanization, it has become clear that our internal conservation efforts must be supplemented by robust community engagement.

Water conservation in our communities
In 2004, Intel Massachusetts awarded more than $220,000 in grants to four model projects with the potential to recharge more than 40 million gallons of water to local aquifers that replenish the Assabet River and its tributaries. The $1.5 million Intel Assabet River Aquifer Recharge Fund remains in place to award grants to support such projects.

For the 11th year in a row, Intel Ireland funded a comprehensive limnological survey of the nearby Rye, a tributary of the River Liffy and an important salmon spawning ground. Extensive ecological information is now available, enabling individuals to study even minute changes in the river's long-term health.

Energy reduction and climate change
Intel set a new Energy Reduction Goal in 2003: to reduce worldwide consumption by an average 4% per year on a normalized (to production) basis. In 2004, we took several steps to further existing efforts and build on past efforts. We applied more than $4 million to energy conservation projects, resulting in projected annual savings of $2.1 million and five-year cost savings projected at $7.4 million. These projects will yield reductions each year of 25.5 million kWh of electricity, 1.9 million therms of natural gas and 226.6 cubic meters of water use. Three additional efforts, focused on optimizing air compression and conditioning systems in Intel offices and factories around the world, have resulted in savings each year of approximately 20 million kWh of electricity and more than $3 million in operating costs. We have continued our purchases of renewable energy at our sites in New Mexico, Oregon and Texas.

In 2004, Intel continued its support of Conservation International's Climate, Community and Biodiversity Alliance (CCBA) as one of eight alliance members. CCBA is a corporate/non-governmental (NGO) partnership with a mission to design voluntary standards to identify land management projects that simultaneously minimize climate change, support sustainable development and combat the loss of biodiversity. In 2004, these standards were completed and released for public comment. In addition, field testing of the standards began in Madagascar and Tanzania.
www.climate-standards.org

Recycling that hits the bottom line
Intel business groups continue to apply the concept of "reduce, reuse and recycle" not only to optimize business processes but also to save costs. As tools become obsolete in one process, they can be harvested for reuse, resale or donation to another. Savings from these initiatives amounted to more than $7.5 million in 2004.

Intel computing, lab and test equipment can be donated and reclaimed through our Corporate Investment Recovery intranet site, CIRMarketplace. This virtual marketplace operates like a web-based auction and is designed to give employees access to valuable equipment. CIRMarketplace handled more than 27,000 items for resale, donation and scrap in 2004. Through tool reuse initiatives alone, we hope to achieve savings of more than $700 million through 2007.