Energy

Energy

We attach great importance to global energy management in order to improve the efficiency of our plants and processes and to reduce greenhouse gas emissions. Our energy consumption rose by just over 2 percent in 2014, mainly as a result of increased production in the regions of South & East Asia and Greater China. In 2014, we identified around 250 projects worldwide which helped reduce our energy consumption. Implementing these projects enabled us to make cost savings of over EUR 24 million and avoid around 160,000 tonnes of CO2 emissions.

 In the reporting year, for example, we extended to Europe a programme that had been developed in North America in order to achieve optimal capacity utilisation of production plants. CO2 emissions were reduced as a result and cost savings of around EUR 4 million were achieved. Since 2012, around 85 percent of Linde Gas production plants in Germany have been certified according to ISO 50001. The global standard testifies to systematic energy management, which allows efficiency potential to be recognised.

 (XLS:) Download

Energy consumption (in million MWh)

 

 

 

 

 

 

 

 

 

 

 

2014

 

2013

 

2012

 

2011

Geprüft von KPMG

Assured by KPMG

1

Other energy sources include for example thermal energy, heating oil, biofuel energy, propane, butane and diesel fuel. In 2014, Linde sold a plant in Southern Europe which previously consumed mainly other energy sources. Indicators for this plant are no longer included in the reported figure. The increased consumption of other energies in 2011 resulted from the inclusion of additional other energy sources (e.g. naphtha and methanol) into the indicator scope.

As a result of the first-time application of the revised accounting standards, the sites in the scope of our reporting changed in the 2013 financial year. Accordingly, the key financial, environmental and employee KPIs for 2012 were adjusted retrospectively. In addition, the KPIs for employees, occupational health and safety and environmental protection for the year 2012 were retrospectively adjusted to account for the effects of the acquisition of the US homecare company Lincare.

Electricity consumption Geprüft von KPMG

 

26.2

 

23.4

 

23.5

 

20.3

of which by air separation plants Geprüft von KPMG

 

23.5

 

20.7

 

20.8

 

17.9

Natural gas consumption Geprüft von KPMG

 

39.5

 

36.4

 

35.9

 

25.4

of which by HyCO plants Geprüft von KPMG

 

24.9

 

23

 

22.8

 

21.7

Consumption of other energy sources1 Geprüft von KPMG

 

10.7

 

14.8

 

13.4

 

11.7

Renewable energy

As an energy-intensive company, Linde requires a reliable and competitively priced energy supply. We are exploring the use of renewable energy, the current level of which largely reflects the energy mix applicable in the various regions. In Sweden, we have a shareholding in VindIn, a wind energy company. The aim of this long-term initiative is to provide around 1 million MWh of electricity per annum. In 2014, the initiative supplied around 2 percent of the local electricity needs of AGA Sweden. During the reporting year, we cooperated closely with local authorities to convert a plant in North America, so that on average over 9 million kWh of electricity is now sourced each year from wind energy rather than being produced from fossil fuels, avoiding a further 7,000 tonnes of CO2 emissions per annum.

In the Healthcare business in 2014, we again purchased RECS certificates covering 40,000 MWh of our electricity consumption. The aim of the Renewable Energy Certificate System (RECS) is the Europe-wide promotion of renewable energy.

Materiality: Energy

Key indicators
Energy consumption, energy efficiency

Targets

  • 5 percent reduction in energy intensity at installed air separation plants by 2017 (base year 2008)
  • 2 percent increase in energy efficiency at installed hydrogen plants by 2015 (base year 2009)

Business case
Financial

  • Cost savings of EUR 24 million as a result of energy efficiency projects in 2014
  • Contribution towards the target of reducing gross costs by a total of between EUR 750 million and EUR 900 million in the four-year period from 2013 to 2016
  • Contribution towards the target for Group operating profit in 2017 as a result of gaining access to new markets and customers in the energy and environmental sector

Environmental

  • 1.8 million tonnes of CO2 emissions avoided since 2008 due to improvement in energy intensity of air separation plants