Integrated business model

On-site

On-site plants are positioned at the core of Linde’s integrated business model. These purpose-built gas production facilities are used to supply major customers locally. Drawing on its vast engineering expertise, Linde tailors these cost-efficient plants to individual needs. The company complements this engineering know-how with the operational expertise required to run these plants reliably over time, ensuring precise control over production operations.

Customers from the chemical, steel and petroleum industries are increasingly outsourcing their gas supply, making the on-site business a promising growth market.

A good example of this development is a current project in Finland, where Linde is engineering a new hydrogen facility for Neste Oil at the Porvoo refinery. Here, Linde is able to bundle the hydrogen technology leadership of its Engineering Division with the wealth of experience gained by its Gases Division as a plant operator.

Perfect interplay

Depending on the geographic location and conditions on the ground, on-site projects can pose specific challenges for all companies involved. Technology companies like Linde, which combine one-stop engineering and operational services with local experience and insights, enjoy a strong competitive advantage.

Jukka Keyrilainen, Development Manager at Neste Oil (right), and Jan Heinrich, Business Development Manager for Linde’s on-site operations (left), in Porvoo (Finland). (Photo)

Jukka Keyrilainen, Development Manager at Neste Oil (right), and Jan Heinrich, Business Development Manager for Linde’s on-site operations (left), in Porvoo (Finland).

The new hydrogen facility uses a particularly energy-efficient concept for an even greater reduction in CO2 emissions. (Photo)

The new hydrogen facility uses a particularly energy-efficient concept for an even greater reduction in CO2 emissions.

“We channelled the vast hands-on experience we have gained operating hydrogen plants into the design of the Porvoo facility.”

Jan Heinrich, Business Development Manager for Linde’s on-site operations

From the very outset, the performance requirements for the new hydrogen facility that Linde is constructing to supply Neste Oil at the Porvoo refinery (Finland) were extremely high. “Natural gas, the feedstock for hydrogen production, is relatively expensive in this region,” reports Jan Heinrich, Business Development Manager for Linde’s on-site operations. “So we needed to develop a particularly energy-efficient plant concept to ensure competitive production costs.” The Linde engineers achieved this by further optimising heat recovery within the process. “The integrated use of process heat has enabled us to maximise heat recovery to a greater extent here than in any other system to date,” explains Heinrich. With a positive side-effect for the environment: the new plant generates significantly lower CO2 emissions than conventional hydrogen facilities.

The on-site project in Porvoo is also a textbook example of the importance of close collaboration between customer and contractor. “With the facility being engineered and operated on the refinery site, safety is a top priority,” emphasises Jukka Keyrilainen, Development Manager at Neste Oil. “And to ensure the highest safety standards, all interfaces must function seamlessly. Working with Linde, this is always the case.” Within the partnership, Linde can also make use of the site’s facilities, such as the plant fire department and security service. Additionally, the company draws utilities such as electricity, water, nitrogen and coolant from the refinery.

Linde also benefits from its own synergies in Porvoo. The company already operates an air separation plant just two kilometres away, as well as a CO2 facility at the site itself. So when it comes to running the new hydrogen plant, Linde can build on the technical expertise of its existing operation teams and use the control centre already on site.

The fact that Linde is on well-known terrain in Porvoo holds wider advantages too. The company’s experts are already very familiar with the climatic conditions on the south coast of Finland, for instance. “We have designed the new plant for reliable production at temperatures right down to minus 40 degrees Celsius,” confirms Jan Heinrich. Here, Linde is responding to another key customer requirement: plant availability. “A reliable, long-term supply of the right amount of hydrogen at all times is essential for operational continuity at the refinery.” Neste Oil primarily uses the hydrogen for fuel desulfurisation.

The new Porvoo plant is an excellent example of the far-reaching benefits of collaboration between the Gases and Engineering Divisions at Linde. While the Engineering Division is responsible for turnkey construction, the Linde Group’s Scandinavian gas company will be in charge of plant operation. Neste Oil will build the pipeline connection to the refinery.

Close collaboration between the two divisions and a single face to the customer is a key success factor for Linde: “Our design for the Porvoo plant incorporates decades of experience gained in our gases business from the operation of hydrogen facilities around the globe,” describes Heinrich.

This collaborative expertise is a strong factor in winning customers like Neste Oil. “Cooperating with Linde significantly increases our hydrogen production efficiency,” declares Matti Lievonen, President & CEO of the Finnish refining and marketing company. “This new plant will boost our hydrogen capacity, in turn improving the reliability and flexibility of the refinery. At the same time, it leaves us free to focus more intensively on our core business and a cleaner traffic strategy.” An aim that clearly means a lot to both partners, with joint investment in this new on-site project totalling around EUR 100 m.

The new plant marks a significant increase in Neste Oil’s hydrogen capacity at the Porvoo refinery. (Photo)

The new plant marks a significant increase in Neste Oil’s hydrogen capacity at the Porvoo refinery.

Close collaboration between Neste Oil and Linde is a key success factor for the on-site project in Porvoo. (Photo)

Close collaboration between Neste Oil and Linde is a key success factor for the on-site project in Porvoo.

Jukka Keyrilainen and Jan Heinrich examine the complex pipeline system at the refinery’s extensive site. (Photo)

Jukka Keyrilainen and Jan Heinrich examine the complex pipeline system at the refinery’s extensive site.

Additional on-site projects

In addition to the Porvoo hydrogen plant, Linde won various other on-site projects in the 2014 financial year.

In February, Linde signed a long-term agreement with Nynas AB, a global market leader for naphthenic specialty oils (NSP) and bitumen products, for on-site hydrogen supplies at its Hamburg (Germany) refinery. This will involve Linde’s Engineering Division constructing a new steam reformer, with the Gases Division investing around EUR 30 m.

During the third quarter, Linde signed a long-term agreement to supply oxygen and nitrogen to the ArcelorMittal group’s steelworks in Eisenhüttenstadt (Germany). Under this agreement, which extends an existing supply contract, Linde is also set to build a new air separation plant with an investment volume of around EUR 85 m. Linde’s Engineering Division is responsible for building the plant, which will also supply liquid gases to the regional market. This project further consolidates Linde’s strong market position as an oxygen supplier for the steel sector.

12

on-site facilities
completed and
brought on stream
during 2014

Singapore (graphic)

Hydrogen and syngas plant

Singapore

China (graphic)

Hydrogen plant

Jilin (China)

Hydrogen and syngas plant

Caojing (China)

Air separation plant

Suzhou (China)

Romania (graphic)

Syngas plant

Ploiești (Romania)

Russia (graphic)

Air separation plant

Kaluga (Russia)

Air separation plant

Dzerzhinsk (Russia)

Kazakhstan (graphic)

Air separation plant

Temirtau (Kazakhstan)

Ecuador (graphic)

Air separation and pressure swing adsorption plant

Guayaquil (Ecuador)

Norway (graphic)

Air separation plant

Mo i Rana (Norway)

New Zealand (graphic)

Air separation plant

Glenbrook (New Zealand)

England (graphic)

Air separation plant

Teesside (England)

India (graphic)

Air separation plant

Rourkela (India)