Energy & climate protection

Energy and climate protection

We are constantly working on ensuring the efficient use of energy and on reducing greenhouse gas emissions. To do so, we rely on global energy management of plants and processes around the world. We control our energy consumption and greenhouse gas emissions worldwide and report thereon, complying for example with the international standards set out in the Greenhouse Gas Protocol. We offer our customers gases and technologies which reduce the consumption of natural resources and promote the use of renewable energy. To make the CO2 balance sheet of the main air gases produced transparent for our customers, we use a standardised method which has been externally certified.

Goal

-6 million

tonnes of CO2 in the operation of HyCO
plants and air separation plants by 2020
(base year 2009)

Measures

  • Technical improvements in plant design
  • More efficient production processes

Status

-3.3 million

tonnes of CO2

Global targets

Most of the electricity required by Linde is used for the operation of our air separation plants. Around 60 percent of our total CO2 emissions are the by-product of the generation of this electricity by energy providers and are reported by us as indirect emissions. Our direct emissions stem mainly from the operation of hydrogen and synthesis gas plants (HyCO plants).

Climate protection target: avoidance of 6 million tonnes of CO2 by 2020 (in million t, cumulated)
Climate protection target: avoidance of 6 million tonnes of CO2 by 2020 (bar chart)

By 2020, we are seeking to avoid a total of 6 million tonnes of CO2 emissions compared to the year 2009, of which 4.8 million tonnes in air separation plants (scope 2 emissions) and 1.2 million tonnes in HyCO plants (scope 1 emissions). To meet this target, we are focusing on technical improvements in plant design and more efficient production processes in HyCO and air separation plants. By the end of 2016, we had avoided a total of 3.3 million tonnes of CO2 emissions, of which 0.8 million tonnes were direct emissions and 2.5 million tonnes were indirect emissions. In 2016, we identified more than 200 projects worldwide that helped reduce our energy consumption and CO2 emissions – for example by using more efficient compressors and by exchanging valves. Implementing these projects generated cost savings for the Group of more than EUR 30 m in 2016. We avoided around 220,000 tonnes of CO2 emissions as a result.

Another focus of our climate protection measures is the transportation of products. Around 900 million kilometres were covered by our own transport fleet and transport service providers carrying our goods in 2016. Optimised routes, better use of transport capacity and defensive driving training help us reduce the number of kilometres travelled, cut the amount of fuel consumed and bring down the level of transport emissions.

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Greenhouse gas emissions1

 

 

 

 

 

 

 

 

 

 

 

 

 

2016

 

2015

 

2014

 

2013

Geprüft von KPMG

Assured by KPMG

1

In line with the information in the Financial Report 2016, the figures provided for the years 2015 and 2016 exclude the business of the logistics service provider Gist, as it has been reported as a discontinued operation.

2

From 2015, this figure also includes greenhouse gas emissions generated by Linde’s transport contractors. The 2014 figure has been recalculated.

3

This includes greenhouse gases specified in the Kyoto Protocol: methane (CH4), nitrous oxide (laughing gas, N2O), perfluorocarbons (PFCs), hydrofluorocarbons (HFCs), sulphur hexafluoride (SF6) and nitrogen trifluoride (NF3). In 2014, Linde has refined the determination method of the indicator for these GHGs to include additional emitters and emission sources. The reported figure for 2013 was recalculated based on this new method.

4

Since 2014, we also include the Radiative Forcing Index (RFI) to calculate emissions from business travel. Thereby, we take into account the higher impact of air travel on the greenhouse effect. Emissions for the year 2013 have been re-calculated accordingly.

Direct greenhouse gas emissions (Scope 1)

 

 

 

 

 

 

 

 

CO2 emissionsGeprüft von KPMG

million t

 

7.0

 

7.1

 

7.3

 

7.2

of which by HyCO plantsGeprüft von KPMG

million t

 

4.7

 

4.0

 

4.0

 

4.2

Linde transport fleet2 Geprüft von KPMG

million t CO2e

 

0.80

 

0.78

 

0.88

 

0.49

Other greenhouse gases3 Geprüft von KPMG

million t CO2e

 

1.8

 

1.7

 

1.5

 

1.5

TotalGeprüft von KPMG

million t CO2e

 

9.6

 

9.6

 

9.7

 

9.2

 

 

 

 

 

 

 

 

 

 

Indirect greenhouse gas emissions (Scope 2)

 

 

 

 

 

 

 

 

CO2 emissionsGeprüft von KPMG

million t

 

16.2

 

15.4

 

15.0

 

13.0

of which by air separation plantsGeprüft von KPMG

million t

 

14.7

 

13.7

 

13.5

 

11.8

Total scope 1 and 2 emissionsGeprüft von KPMG

million t CO2e

 

25.8

 

25.0

 

24.7

 

22.2

Emissions per million EUR sales

t CO2e

 

1,522

 

1,440

 

1,449

 

1,333

Emissions per Linde employee

t CO2e

 

432

 

418

 

377

 

350

 

 

 

 

 

 

 

 

 

 

Other indirect greenhouse gas emissions (Scope 3)

 

 

 

 

 

 

 

 

Business travel4 Geprüft von KPMG

thousand t CO2e

 

58.7

 

68.5

 

72.9

 

81.0

Energy consumption

As an energy-intensive company, we require a reliable and competitively priced energy supply and we are constantly optimising the energy efficiency of our production processes. The increase in our energy consumption over the past few years is mainly due to the expansion of our business operations. Other factors which may have an impact on our energy consumption are fluctuations in product demand and capacity utilisation at individual plants. Our energy consumption increased by around 2 percent in the reporting year compared with the prior year.

In 2016, we took part in the European Union’s Emissions Trading System at ten of our hydrogen and synthesis gas production sites. There were around 1.2 million tonnes of CO2 emissions from these plants during the year. Our Group was allocated emissions allowances for around 0.9 million tonnes of CO2 in 2016. Further certificates were purchased.

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Energy consumption (in million MWh)1

 

 

 

 

 

 

 

 

 

 

 

 

 

2016

 

2015

 

2014

 

2013

Geprüft von KPMG

Assured by KPMG

1

In line with the information in the Financial Report 2016, the figures provided for the years 2015 and 2016 exclude the business of the logistics service provider Gist, as it has been reported as a discontinued operation.

2

Examples of other energy sources are heating oil, biofuel energy, propane, butane, thermal energy and diesel fuel. From 2015, this figure also includes diesel consumption by Linde’s transport contractors. The 2014 figure has been recalculated.

Electricity consumptionGeprüft von KPMG

 

 

27.5

 

26.8

 

26.2

 

23.4

of which by air separation plantsGeprüft von KPMG

 

 

24.8

 

23.9

 

23.5

 

20.7

Natural gas consumptionGeprüft von KPMG

 

 

39.4

 

39.5

 

39.5

 

36.4

of which by HyCO plantsGeprüft von KPMG

 

 

29.3

 

25.4

 

24.9

 

23.0

Consumption of other energy sources2 Geprüft von KPMG

 

 

12.8

 

12.1

 

12.2

 

14.8

In Europe, we worked during the reporting year on the implementation of the provisions of the European Union’s Energy Efficiency Directive. These include among other issues regular energy audits for companies at production sites, distribution sites and offices, or alternatively energy certification in accordance with ISO 50001. Since 2012, around 85 percent of Linde Gas production sites in Germany have been certified in accordance with this global standard. In addition, in the course of 2016, filling plants in Germany were among the facilities to be certified for the first time in accordance with ISO 50001.

We review the use of renewable energy, the current level of which largely reflects the regional energy mix available in each country. In Germany, we extract our medical oxygen CONOXIA® using only electricity from renewable energy sources. In 2016, this covered 40,000 MWh of our electricity consumption.

Products for energy efficiency and climate protection

We offer our customers a variety of solutions to make production and energy generation processes more efficient and more environmentally friendly. Our gases and technologies help our customers reduce emissions to a large extent. A particularly high proportion of this reduction in emissions is generated by the use of oxygen in a special combustion process and the use of hydrogen in the desulphurisation of fuel. In oxyfuel plants, which are used for example by the glass and steel industries, the combustion air is enriched with oxygen, resulting in much more efficient combustion than if ambient air were used. Our hydrogen is utilised by the oil industry in fuel desulphurisation. Combining desulphurised fuel with a filter significantly cuts emissions of soot particles, which like CO2 contribute to the greenhouse effect. The use of these two technologies alone enables our customers to avoid around 30 million tonnes of CO2 emissions per annum.

We are also researching ways to recycle and store CO2. Since 2015, we have been testing new processes for the production of synthesis gas using CO2 at our own pilot facility on the Pullach site in Germany. Through a joint venture in the Netherlands, we are supplying more than 580 greenhouses with 400,000 tonnes of CO2 from an oil refinery. Recycling this greenhouse gas means that it is possible to avoid CO2 emissions equivalent to the annual CO2 emissions from a Western European city.

For a customer in Saudi Arabia, we built a CO2 purification and liquefaction plant during the reporting year. This processes around 1,500 tonnes of carbon dioxide per day so that it can be reused in the petrochemical industry. This results in a reduction in CO2 emissions of around 500,000 tonnes per annum.

Our products are also deployed in other parts of the mobility sector to reduce environmental pollution. The use of liquefied natural gas (LNG) or hydrogen significantly reduces emissions from cars, buses, trucks and ships. We are not only investing in the development of efficient hydrogen refuelling technology but are also cooperating with partners to set up a supply infrastructure.