Linde celebrates 35 years of growth in China

Company contributes to nation's energy transition with a focus on hydrogen energy

Linde, celebrating its 35th anniversary in China this year, will maintain its long-term commitment and give full play to its expertise in innovation to bolster industrial upgrading and transformation in the country amid an economic slowdown and challenges ahead.

Since beginning operations in 1987, Linde has been committed to supporting China's endeavors in energy efficiency and enhancing productivity. Linde is the world's largest industrial gas company by market share and revenue. Its headquarters are in the United Kingdom.

Will Li, president of Linde Greater China, said the company was one of the first foreign industrial gas giants to introduce air separation technologies, along with the concept of liquefied gas in China.

It introduced the new business model of gas outsourcing among industrial enterprises to contribute to customers' product quality, process optimization and competitiveness. As a pioneer in the gas sector, Linde also boasted its role as a talent incubator in the last 35 years as the gas industry expanded.

Inspiring local market

Given the strong momentum of the Chinese economy over the last 35 years and its diversified product portfolio that enables it to stay ahead of the economic cycle, Linde reported outstanding business performance in China.

"China is one of the largest overseas markets of Linde. Our annual sales revenue growth rates remain higher than annual GDP growth of the country," Li said.

The Linde Technology Center Shanghai, one of the four research and development centers for the group across the world, ensures the latest technologies can be applied well in the local market. An engineering center was also built to serve both China and the global market.

It has established long-term partnerships with many influential local industrial leaders such as Sinopec, Shanghai Huayi Group, Wanhua Chemical Group, Semiconductor Manufacturing International Corp and China National Offshore Oil Corp. The company maintained a strong presence in industries such as petrochemical, manufacturing, new energy, new materials, electronics, healthcare, food and beverages.

"Our products and services are like the lifeblood of industries, which are as important as public utilities like water and power supply," Li said.

Embracing green future

Despite the economic slowdown in China in the first half of 2022, Linde remains positive about developments in the country.

"China's status as a global manufacturing center will not change in the next five years despite market uncertainties," Li said. "The establishment of a manufacturing center needs support from supply chains ranging from raw materials to end market. Some businesses along the industrial chain might leave the Chinese market but it is difficult to move the entire chain out of China."

Li said Linde will attach greater importance to promoting Linde Gas Hub, a specialized gas supply model which enables centralized gas production, distribution and services for industrial and chemical parks in China.

The previous projects of Linde Gas Hub launched in provinces like Zhejiang, Jiangsu and Fujian, and Guangxi Zhuang autonomous region have demonstrated themselves as a highly efficient gas supply solution with more safety, reliability and lower carbon emissions.

For example, in 2021, Linde started an on-site facility in Qinzhou petrochemical industrial park in Guangxi, to supply oxygen and other industrial gases to a new chemical complex of the Shanghai Huayi Group. The new facility comprises three air separation units which are designed to supply up to 7,500 metric tons of oxygen per day and 5,000 tons of nitrogen per day. The facility is also set to supply gas to various production sites of Huayi in the area. Linde said the business model will help Huayi operate more efficiently, lowering its energy consumption and carbon emissions.

As a global leader in the production, processing, storage, distribution and application of hydrogen, Linde produces a considerable portion of liquefied hydrogen in the world with hydrogen gas pipeline networks globally.

Linde is keen to contribute to China's energy transition with a focus on hydrogen energy. In 2021, Linde launched its first plant in Dalian that produces facilities for hydrogen fueling stations and debuted an ionic compressor produced locally.

Linde is also looking for partnerships with different stakeholders to upgrade local energy supply systems. It is actively seeking opportunities in key industrial and chemical parks in areas like Shanghai and Guangdong province by partnering with governments and enterprises to locally develop new energy systems.

The company is at the forefront of the transition to clean hydrogen, and has installed over 200 hydrogen fueling stations and 80 hydrogen electrolysis plants worldwide.

"I am proud to say there are no constraints to technological development. Linde has one of the most advanced technologies in hydrogen production, storage and distribution, either in gas or liquefied hydrogen," Li said.

Li called for more supportive policies and industry standards which could help the hydrogen industry develop faster in China.

In November, Linde will attend the 2022 China International Import Expo for the fourth consecutive year to strengthen communications with governments and clients. Apart from demonstrating its latest products and services, it will share its goals and new ideas in carbon emissions and green transition.