Raw materials

Raw materials

Efficient use of resources enables us to reduce our environmental impact and cut costs. Air is the most important raw material we use in the production of our gases. Carbon dioxide and natural gas are also key raw materials used by Linde. When manufacturing products, our other principal input is energy. The main packaging material we use is gas cylinders. A typical Linde cylinder has a lifespan of many years and is refilled on average four times a year. At the end of 2016, there were more than 25 million Linde cylinders in circulation. In addition, key materials processed by the Group include steel and aluminium, which are used in particular for the manufacture of components in plant construction.

Minerals

We examine our supply chain for conflict minerals listed in the US Dodd-Frank Act. Against this background, all suppliers to our electronics segment for instance are required to confirm that their products are free of conflict minerals. We check that this is the case when conducting our supplier audits.

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Usage of resources and materials (in tonnes)1

 

 

 

 

 

 

 

 

 

 

 

 

 

2016

 

2015

 

2014

 

2013

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.

Geprüft von KPMG

Assured by KPMG

Raw materials and suppliesGeprüft von KPMG

 

 

55,590

 

54,170

 

52,770

 

57,750

Packaging materialsGeprüft von KPMG

 

 

3,510

 

3,160

 

5,580

 

3,990

Renewable raw materials

More than 80 percent of the gases sold by Linde in 2016 measured by weight was derived from the natural raw material air. In the case of carbon dioxide, another of our main products, we recover around 80 percent of the raw material required from recycling processes, of which around 10 percent comes from purely organic processes. Carbon dioxide is, for example, a by-product from the fermentation of renewable raw materials.

The use of renewable energy and renewable raw materials as well is underpinned by Linde technologies. We are participating for example in a pilot project in Mainz, Germany: in what is currently the largest polymer electrolyte membrane electrolysis plant in the world, renewable energy has been used to produce hydrogen since 2015. The plant is designed to produce 200 tonnes of hydrogen per annum. In 2016, inspection and certification provider TÜV SÜD confirmed that greenhouse gas emissions from the production of hydrogen using this method at this plant are 75 percent lower than for hydrogen produced from fossil fuels. In Sweden, we generated around 450 tonnes of hydrogen entirely from water power in 2016. Fuel cell vehicles can fill their tanks with hydrogen at the hydrogen filling stations at Stockholm’s Arlanda Airport and at Sandviken. Since 2012, we have also produced hydrogen using steam reforming technology from biomethane instead of natural gas at our Leuna site in Germany.