Atmospheric Gases, Process and Specialty Gases, Performance Materials and Chemical Intermediates for The Energy, Healthcare and Industrial Markets
About Us
Air Products (NYSE:APD) serves customers in technology, energy, healthcare and industrial markets worldwide with a unique portfolio of products, services and solutions, providing atmospheric gases, process and specialty gases, performance materials and chemical intermediates. Air Products has built leading positions in key growth markets such as semiconductor materials, refinery hydrogen, home healthcare services, natural gas liquefaction, and advanced coatings and adhesives. The company is recognized for its innovative culture, operational excellence and commitment to safety and the environment and is listed in the Dow Jones Sustainability and FTSE4Good Indices. The company has annual revenues of $8.1 billion, operations in over 30 countries, and more than 20,000 employees around the globe. Air Products was established in 1940 in Detroit, Michigan, on the strength of a simple, but then revolutionary, idea: the "on-site" concept of producing and selling industrial gases, primarily oxygen. At the time, most oxygen was sold as a highly compressed gas product in cylinders that weighed five times more than the gas itself. Air Products proposed building oxygen gas generating facilities adjacent to large-volume users, thereby reducing distribution costs. The concept of piping the gas directly from the generator to the point of use proved sound and technically solvable. Air Products leased its first oxygen gas generator to a small Detroit steel company in 1941. Shortly thereafter, a second order for a gaseous oxygen generator was received from the Norfolk Navy Yard. World War II diverted the company's attention to the design and manufacture of mobile generators to produce oxygen for use by the military in high-altitude flights. During this period the company built a strong technical organization and established a tradition of response to customer needs that continues today. The 1950s brought more civilian business and new government and military contracts During the 1960s, the company also expanded its overseas operations. Meanwhile in the late '60s and '70s, the company expanded its business devoted to the design of cryogenic equipment and other process and related engineering services. Air Products was further expanded in the '70s with acquisition of the chemicals and plastics business. The 1980s continued to reflect Air Products' strategy of strengthening its base businesses. In the 1990s, the company continued to invest globally. After a decade of success in building an environmental and energy systems business, in 1996 Air Products determined that because of fundamental changes in the U.S. solid waste and power markets, its strategy for this business would be very different going forward. The company subsequently sold its landfill gas recovery business; divested its share of its American Ref-Fuel waste-to-energy business; and "bundled" power generation with industrial gases. Positioned for Growth In the new millennium Air Products' senior management developed an aggressive, long-term business strategy focused on portfolio management, work process improvement, and growth. The company is now deeply involved in several, company-wide initiatives consistent with this strategy and aimed at delivering profitable growth. They include: evaluating all businesses to determine their growth potential and assign them appropriate resources planning of acquisitions of businesses that will advance our performance and divestitures of segments in which we are not the high-value provider implementing an enterprise resource planning tool to streamline and unify the operations of the company organizing globally to strengthen our international operations and performance; and focusing on businesses, processes and systems that will improve our return on capital and earnings growth Recent major moves include the divestiture of our polyvinyl alcohol business and most of our U.S. packaged gas business. Both actions have been recognized by investors as prudent and beneficial Today, Air Products ranks 281st in sales and 276th in total assets among FORTUNE magazine's April 2005 list of the 500 largest corporations in the U.S. Corporate headquarters are at the company's 600-acre campus in eastern Pennsylvania's Lehigh Valley, near Allentown; European headquarters are at Hersham, near London; and Asian headquarters are in Singapore, with offices in Tokyo and Hong Kong. Serving a Diversity of Markets Air Products is one of the world's largest industrial gas producers, supplying a broad range of industrial gases—chiefly oxygen, nitrogen, argon, hydrogen and helium and related equipment for their production, distribution and use—to hundreds of thousands of customers throughout the world. These gases are used in most industries, including food and metal processing, semiconductor manufacturing, healthcare, aerospace and chemical production. Air Products' $1.9 billion chemicals business includes polymers, polyurethane intermediates and additives, amines, and specialty and epoxy additives used in applications such as adhesives, coatings, polyurethane foams, textiles, herbicides, pesticides, water treatment chemicals, reinforced composites and inks. Additionally, in October 2002, Air Products entered the U.S. homecare business with the acquisition of American Homecare Supply (AHS), a privately-held corporation ranked among the ten largest U.S. homecare providers of respiratory therapy and home medical equipment. Air Products has been providing products and services to the medical industry for over 50 years. With the AHS acquisition, the company and its affiliates will be providing home medical services to more than 275,000 patients in 14 countries from more than 200 locations. Air Products has also acquired Sanwa Chemical of Japan, broadening our position in epoxy chemicals in Asia. As international competition continues to intensify, Air Products is well positioned to compete with the best anywhere in the world. In addition to a broad product line and invested presence in more than 30 countries, the company has world-class production and applications technology and a long-standing commitment to safety, efficiency and cost-effectiveness in every facet of its operations. The corporation also has firmly established continuous improvement processes which will yield further productivity gains and even higher levels of customer satisfaction—ensuring a future for Air Products as bright as its past.
Air Products (NYSE:APD) serves customers in technology, energy, healthcare and industrial markets worldwide with a unique portfolio of products, services and solutions, providing atmospheric gases, process and specialty gases, performance materials and chemical intermediates. Air Products has built leading positions in key growth markets such as semiconductor materials, refinery hydrogen, home healthcare services, natural gas liquefaction, and advanced coatings and adhesives. The company is recognized for its innovative culture, operational excellence and commitment to safety and the environment and is listed in the Dow Jones Sustainability and FTSE4Good Indices. The company has annual revenues of $8.1 billion, operations in over 30 countries, and more than 20,000 employees around the globe.
Air Products was established in 1940 in Detroit, Michigan, on the strength of a simple, but then revolutionary, idea: the "on-site" concept of producing and selling industrial gases, primarily oxygen. At the time, most oxygen was sold as a highly compressed gas product in cylinders that weighed five times more than the gas itself. Air Products proposed building oxygen gas generating facilities adjacent to large-volume users, thereby reducing distribution costs. The concept of piping the gas directly from the generator to the point of use proved sound and technically solvable.
Air Products leased its first oxygen gas generator to a small Detroit steel company in 1941. Shortly thereafter, a second order for a gaseous oxygen generator was received from the Norfolk Navy Yard. World War II diverted the company's attention to the design and manufacture of mobile generators to produce oxygen for use by the military in high-altitude flights. During this period the company built a strong technical organization and established a tradition of response to customer needs that continues today.
The 1950s brought more civilian business and new government and military contracts During the 1960s, the company also expanded its overseas operations. Meanwhile in the late '60s and '70s, the company expanded its business devoted to the design of cryogenic equipment and other process and related engineering services. Air Products was further expanded in the '70s with acquisition of the chemicals and plastics business. The 1980s continued to reflect Air Products' strategy of strengthening its base businesses.
In the 1990s, the company continued to invest globally. After a decade of success in building an environmental and energy systems business, in 1996 Air Products determined that because of fundamental changes in the U.S. solid waste and power markets, its strategy for this business would be very different going forward. The company subsequently sold its landfill gas recovery business; divested its share of its American Ref-Fuel waste-to-energy business; and "bundled" power generation with industrial gases.
Positioned for Growth
In the new millennium Air Products' senior management developed an aggressive, long-term business strategy focused on portfolio management, work process improvement, and growth. The company is now deeply involved in several, company-wide initiatives consistent with this strategy and aimed at delivering profitable growth. They include:
Today, Air Products ranks 281st in sales and 276th in total assets among FORTUNE magazine's April 2005 list of the 500 largest corporations in the U.S. Corporate headquarters are at the company's 600-acre campus in eastern Pennsylvania's Lehigh Valley, near Allentown; European headquarters are at Hersham, near London; and Asian headquarters are in Singapore, with offices in Tokyo and Hong Kong.
Serving a Diversity of Markets
Air Products is one of the world's largest industrial gas producers, supplying a broad range of industrial gases—chiefly oxygen, nitrogen, argon, hydrogen and helium and related equipment for their production, distribution and use—to hundreds of thousands of customers throughout the world. These gases are used in most industries, including food and metal processing, semiconductor manufacturing, healthcare, aerospace and chemical production.
Air Products' $1.9 billion chemicals business includes polymers, polyurethane intermediates and additives, amines, and specialty and epoxy additives used in applications such as adhesives, coatings, polyurethane foams, textiles, herbicides, pesticides, water treatment chemicals, reinforced composites and inks.
Additionally, in October 2002, Air Products entered the U.S. homecare business with the acquisition of American Homecare Supply (AHS), a privately-held corporation ranked among the ten largest U.S. homecare providers of respiratory therapy and home medical equipment. Air Products has been providing products and services to the medical industry for over 50 years. With the AHS acquisition, the company and its affiliates will be providing home medical services to more than 275,000 patients in 14 countries from more than 200 locations. Air Products has also acquired Sanwa Chemical of Japan, broadening our position in epoxy chemicals in Asia.
As international competition continues to intensify, Air Products is well positioned to compete with the best anywhere in the world. In addition to a broad product line and invested presence in more than 30 countries, the company has world-class production and applications technology and a long-standing commitment to safety, efficiency and cost-effectiveness in every facet of its operations. The corporation also has firmly established continuous improvement processes which will yield further productivity gains and even higher levels of customer satisfaction—ensuring a future for Air Products as bright as its past.
Environmental Policies and Systems
Our environmental values support our overall EH&S policy and specifically state:We recognize that conducting our business in an environmentally responsible manner is critical to our success. Environmental policies, programs, and practices must be integrated into each business function and made a priority in the design of new processes and facilities and in the evaluation of new business opportunities. Pollution of air, water, and land can be prevented and waste eliminated. Where our past practices have created environmental conditions that require correction, we should responsibly correct them. We can supply products and processes that can be manufactured, distributed, used, and recycled or disposed of in an environmentally responsible manner, helping our customers to protect the environment. We must be an environmentally responsible neighbor for the benefit of our host communities and to retain the license to operate. We have a responsibility to protect the environment and conserve resources for future generations through sustainable development. Each employee must be given the training and tools needed to understand and support these environmental principles in their daily responsibilities. Policies, Values, and Standards Air Products is committed to being an industry leader in environmental, health and safety performance. Each year we set continuous improvement goals in these areas, with the ultimate goal of zero emissions of toxic and hazardous materials, and zero injuries. In 2005, we improved our performance for most of our EH&S measures. This success was due to the efforts of thousands of employees who put safety and protecting the environment first. Their passion, together with our global EH&S system, formed a powerful combination for improving performance. Also in 2005, our corporate headquarters was certified against the American Chemistry Council's Responsible Care Management System requirements. Our EH&S Policy We will be an industry leader in environmental, health, and safety performance and are committed to the following basic principles in managing our businesses worldwide: Compliance with all applicable environmental, health, and safety laws and regulations Continual improvement in health, safety, and security performance with the ultimate goal of zero injuries. Continual reduction of the environmental impact of our operations with the ultimate goal of reducing emissions of toxic and hazardous materials to zero. Open discussion of our environmental, health, and safety practices and performance. Development and production of products that can be manufactured, distributed, used, and recycled or disposed of in a safe, secure, and environmentally sound manner. Design and operation of our plants and facilities in a manner that protects the environment and the health, safety and security of our employees, contractors and the public. Active participation in Responsible Care and similar initiatives in the countries in which we operate. EH&S Management Systems Air Products has developed an extensive management system to address environmental, health, safety, and security concerns. Air Products' EH&S management system incorporates controls necessitated by corporate policies and government regulations, and supports the principles promoted by CERES, Responsible Care®, and international standards such as ISO 14001. These principles, along with legislative requirements and good management practices are included in the EH&S management system which covers: EH&S auditing EH&S training Safe systems of work Product stewardship Emergency preparedness Process safety management Incident reporting and investigation Incident reporting and investigation Occupational health protection Protecting Safety and Health Safety is no accident. It has to be managed through effective programs that make every employee take responsibility for his or her own safety as well as the safety of others. By using this approach, Air Products has built one of the best reputations for safety in the chemical and industrial gas industries and one of the best long-term safety records. In 2005, our safety performance for our global chemicals and gas operations continued to improve. Our U.S. Healthcare business is a hands-on type operation— employees deliver healthcare products directly to customers' homes. As a result, there are many opportunities for ergonomic injuries, and the safety performance of this division is markedly different than that of our traditional chemicals and gases operations. To help improve safety performance in our U.S. Healthcare division, we are continuing to implement the same process that has been successful in other areas of the company, our Basic Safety Process (BSP). Recordable Incidents A recordable incident is a work-related injury that requires medical care beyond basic first aid treatment. Examining recordable incidents and their causes gives us a better look at the severity of all injuries and helps in our prevention efforts. In fiscal 2005, our recordable rate for our global chemicals and gases businesses improved from the prior year, and in Asia and Europe we beat our recordable rate goals. Our overall recordable rate, including U.S. Healthcare, was 0.95. Lost-Time Incidents Lost-time or restricted work injuries or illnesses are typically the most serious incidents. They also are measured as part of our comprehensive efforts to create a safer workplace. In fiscal 2005 our global lost-time incident rate improved to 0.16 for our chemicals and gases businesses. Our overall lost-time incident rate, including U.S. Healthcare, was 0.24. BENCHMARK SAFETY DURING CONSTRUCTIONDuring construction of a plant there are many opportunities for injury. However, the team building the new air separation unit in Xinfeng, Northern China, proved that zero accidents during construction is possible with a commitment to safety and strong management. There were over 450 workers on the Xinfeng site at the peak of construction, and when the plant was built; over 1 million work hours had been spent. But there were zero recordable injuries and zero lost-time incidents. The million hours worked without any recordable injuries is a new record for Air Products and is particularly noteworthy given the tight construction schedule, which included double-shift work, extended workweek activities and temperatures sometimes falling below zero degrees Fahrenheit.
Our environmental values support our overall EH&S policy and specifically state:We recognize that conducting our business in an environmentally responsible manner is critical to our success. Environmental policies, programs, and practices must be integrated into each business function and made a priority in the design of new processes and facilities and in the evaluation of new business opportunities.
Policies, Values, and Standards
Air Products is committed to being an industry leader in environmental, health and safety performance. Each year we set continuous improvement goals in these areas, with the ultimate goal of zero emissions of toxic and hazardous materials, and zero injuries.
In 2005, we improved our performance for most of our EH&S measures. This success was due to the efforts of thousands of employees who put safety and protecting the environment first. Their passion, together with our global EH&S system, formed a powerful combination for improving performance. Also in 2005, our corporate headquarters was certified against the American Chemistry Council's Responsible Care Management System requirements.
Our EH&S Policy
Air Products has developed an extensive management system to address environmental, health, safety, and security concerns. Air Products' EH&S management system incorporates controls necessitated by corporate policies and government regulations, and supports the principles promoted by CERES, Responsible Care®, and international standards such as ISO 14001. These principles, along with legislative requirements and good management practices are included in the EH&S management system which covers:
Protecting Safety and Health
Safety is no accident. It has to be managed through effective programs that make every employee take responsibility for his or her own safety as well as the safety of others. By using this approach, Air Products has built one of the best reputations for safety in the chemical and industrial gas industries and one of the best long-term safety records. In 2005, our safety performance for our global chemicals and gas operations continued to improve.
Our U.S. Healthcare business is a hands-on type operation— employees deliver healthcare products directly to customers' homes. As a result, there are many opportunities for ergonomic injuries, and the safety performance of this division is markedly different than that of our traditional chemicals and gases operations.
To help improve safety performance in our U.S. Healthcare division, we are continuing to implement the same process that has been successful in other areas of the company, our Basic Safety Process (BSP).
Recordable Incidents
A recordable incident is a work-related injury that requires medical care beyond basic first aid treatment. Examining recordable incidents and their causes gives us a better look at the severity of all injuries and helps in our prevention efforts. In fiscal 2005, our recordable rate for our global chemicals and gases businesses improved from the prior year, and in Asia and Europe we beat our recordable rate goals. Our overall recordable rate, including U.S. Healthcare, was 0.95.
Lost-Time Incidents
Lost-time or restricted work injuries or illnesses are typically the most serious incidents. They also are measured as part of our comprehensive efforts to create a safer workplace. In fiscal 2005 our global lost-time incident rate improved to 0.16 for our chemicals and gases businesses. Our overall lost-time incident rate, including U.S. Healthcare, was 0.24.
BENCHMARK SAFETY DURING CONSTRUCTIONDuring construction of a plant there are many opportunities for injury. However, the team building the new air separation unit in Xinfeng, Northern China, proved that zero accidents during construction is possible with a commitment to safety and strong management. There were over 450 workers on the Xinfeng site at the peak of construction, and when the plant was built; over 1 million work hours had been spent. But there were zero recordable injuries and zero lost-time incidents. The million hours worked without any recordable injuries is a new record for Air Products and is particularly noteworthy given the tight construction schedule, which included double-shift work, extended workweek activities and temperatures sometimes falling below zero degrees Fahrenheit.
Environmental Protection
Waste and Emissions Reductions In 2005, our environmental performance improved in two key areas, toxic releases and government fines, but declined in hazardous waste generation and environmental incidents. As a result, we're implementing corrective action plans aimed at reducing waste and incidents. And in 2006 we will examine our environmental performance and impacts and recommend new, long-term goals in several areas. Toxic Release Inventory Each year Air Products must report to the U.S. Environmental Protection Agency (EPA) the volume of Toxic Release Inventory (TRI) chemicals released to the environment in the previous year. Excluding remediation efforts at our Pensacola, Florida, chemicals plant, our TRI releases for 2004 declined 12% and returned to 2002 levels. The Pensacola remediation is a multiyear project aimed at removing chemicals from the soil and groundwater at the plant, with the resulting cleaner water injected into a deep well situated far beneath human water sources. We are required by the EPA to report as TRI releases certain chemicals remaining in the water, and these totaled 1.3 million pounds in 2004. Hazardous Waste In 2000, we set a goal to cut hazardous waste in Europe and the U.S. in half by the end of 2005. We met this goal in Europe on an absolute basis and in the U.S. on an indexed basis, reducing hazardous wastes in these regions by 55% and 53%, respectively. Significant production increases since 2000 limited our ability to meet our U.S. goal on an absolute basis, but several key waste minimization projects enabled us to avoid disposing of over 30 million pounds of hazardous waste in 2005. Air Sensitive Emissions "Air sensitive" emissions include a more specific group of chemicals on the TRI. Emissions of air sensitives were essentially flat in 2004. Since 1988, we have reduced air sensitive emissions by 94%. Environmental Incidents Environmental incidents are key performance indicators that Air Products uses to measure everything from compliance with environmental permitting requirements to noise and odor complaints. In fiscal year 2005, our environmental incidents increased by 16% for several key reasons—increased self-reporting requirements under the U.S. EPA's Title V air permitting program, differences between state and federal permissible limits, and releases caused by the hurricanes in the Gulf Coast region. We have implemented corrective action plans to address these issues and set aggressive improvement goals for 2006. Greenhouse Gases and Energy Consumption Air Products believes we must understand the greenhouse gas (GHG) footprint of our key business areas as well as how climate change issues will impact us and our customers. This understanding is critical to managing our operations and creating new opportunities that meet the changing needs of our customers and our planet. Air Products is well positioned to be part of the solution to GHG issues. We have built a reputation as a worldwide leader in the development and supply of innovative energy technologies and the efficient use of power and natural gas. And in fact, Air Products is already helping people deal with climate change concerns. For example, we are actively involved in the emerging hydrogen economy through fixed and mobile fueling infrastructure, gas-to-liquids and liquefied natural gas technologies, ion transport membrane syngas and oxygen technologies, electronic materials for energy-efficient light-emitting diodes, high-efficiency burner systems for glass and steel manufacturing, and nitrogen trifluoride for reducing perfluorocarbon emissions in semiconductor manufacturing. Leading our efforts in these areas is our Greenhouse Gas Strategy Team, which serves as our center of excellence companywide. The team is focused on developing strategies to address this emerging market as well as our own emissions. In 2005, the team initiated detailed GHG evaluations of our facilities, closely monitored industry and governmental GHG developments, and identified new business opportunities for our Energy and Process Industries division. Air Products has a proven track record of focusing on energy and process efficiency, and the results show. Between 2002 and 2004, our energy efficiency engineers reduced global power consumption equivalent to the annual power consumed by 80,000 average U.S. homes and approximately 480,000 tons of annual carbon dioxide emissions, and we continued to improve on this effort in 2005. Over the last two decades, we decreased energy use per unit of oxygen and nitrogen product by over 35%. Likewise we have a 30-year track record of improving the delivery efficiency of our industrial gas fleet, reducing energy consumption by 50% through advanced logistical planning. Environmental Compliance and Remediation While we strive to meet all of the increasingly complex environmental requirements, there are opportunities for errors that may result in fines. In 2005, we reduced our environmental fines to $51,000, which was more than a 60% reduction from the prior year. From a remediation perspective, Air Products is directly involved in projects at 10 current or former facilities and some 30 off-site locations where many other parties are included. Where we have been legitimately named as a Potentially Responsible Party, the company enters into appropriate agreements with federal or state authorities. GETTING TO ZERO AT CALVERT CITY At the Calvert City, Kentucky, Emulsions plant, reactors are cleaned periodically with a caustic methanol-based chemical cleaning solution called "Chem Clean." In the past, Chem Clean was stored and reused until it became "spent" with solids and high water content and had to be disposed of as hazardous waste. Then plant personnel initiated a program to use Chem Clean in the site's wastewater treatment system, and disposal of Chem Clean was reduced to zero in 2005. Not only does this keep over 500 tons of hazardous waste from being shipped off-site, it also saves over $300,000 a year in disposal costs and has improved reactor performance at the plant due to more regular turnover of the Chem Clean.
In 2005, our environmental performance improved in two key areas, toxic releases and government fines, but declined in hazardous waste generation and environmental incidents. As a result, we're implementing corrective action plans aimed at reducing waste and incidents. And in 2006 we will examine our environmental performance and impacts and recommend new, long-term goals in several areas.
Toxic Release Inventory
Each year Air Products must report to the U.S. Environmental Protection Agency (EPA) the volume of Toxic Release Inventory (TRI) chemicals released to the environment in the previous year. Excluding remediation efforts at our Pensacola, Florida, chemicals plant, our TRI releases for 2004 declined 12% and returned to 2002 levels.
The Pensacola remediation is a multiyear project aimed at removing chemicals from the soil and groundwater at the plant, with the resulting cleaner water injected into a deep well situated far beneath human water sources. We are required by the EPA to report as TRI releases certain chemicals remaining in the water, and these totaled 1.3 million pounds in 2004.
Hazardous Waste
In 2000, we set a goal to cut hazardous waste in Europe and the U.S. in half by the end of 2005. We met this goal in Europe on an absolute basis and in the U.S. on an indexed basis, reducing hazardous wastes in these regions by 55% and 53%, respectively. Significant production increases since 2000 limited our ability to meet our U.S. goal on an absolute basis, but several key waste minimization projects enabled us to avoid disposing of over 30 million pounds of hazardous waste in 2005.
Air Sensitive Emissions
"Air sensitive" emissions include a more specific group of chemicals on the TRI. Emissions of air sensitives were essentially flat in 2004. Since 1988, we have reduced air sensitive emissions by 94%.
Environmental Incidents
Environmental incidents are key performance indicators that Air Products uses to measure everything from compliance with environmental permitting requirements to noise and odor complaints. In fiscal year 2005, our environmental incidents increased by 16% for several key reasons—increased self-reporting requirements under the U.S. EPA's Title V air permitting program, differences between state and federal permissible limits, and releases caused by the hurricanes in the Gulf Coast region. We have implemented corrective action plans to address these issues and set aggressive improvement goals for 2006.
Air Products believes we must understand the greenhouse gas (GHG) footprint of our key business areas as well as how climate change issues will impact us and our customers. This understanding is critical to managing our operations and creating new opportunities that meet the changing needs of our customers and our planet.
Air Products is well positioned to be part of the solution to GHG issues. We have built a reputation as a worldwide leader in the development and supply of innovative energy technologies and the efficient use of power and natural gas. And in fact, Air Products is already helping people deal with climate change concerns. For example, we are actively involved in the emerging hydrogen economy through fixed and mobile fueling infrastructure, gas-to-liquids and liquefied natural gas technologies, ion transport membrane syngas and oxygen technologies, electronic materials for energy-efficient light-emitting diodes, high-efficiency burner systems for glass and steel manufacturing, and nitrogen trifluoride for reducing perfluorocarbon emissions in semiconductor manufacturing.
Leading our efforts in these areas is our Greenhouse Gas Strategy Team, which serves as our center of excellence companywide. The team is focused on developing strategies to address this emerging market as well as our own emissions. In 2005, the team initiated detailed GHG evaluations of our facilities, closely monitored industry and governmental GHG developments, and identified new business opportunities for our Energy and Process Industries division.
Air Products has a proven track record of focusing on energy and process efficiency, and the results show.
Between 2002 and 2004, our energy efficiency engineers reduced global power consumption equivalent to the annual power consumed by 80,000 average U.S. homes and approximately 480,000 tons of annual carbon dioxide emissions, and we continued to improve on this effort in 2005. Over the last two decades, we decreased energy use per unit of oxygen and nitrogen product by over 35%. Likewise we have a 30-year track record of improving the delivery efficiency of our industrial gas fleet, reducing energy consumption by 50% through advanced logistical planning.
While we strive to meet all of the increasingly complex environmental requirements, there are opportunities for errors that may result in fines. In 2005, we reduced our environmental fines to $51,000, which was more than a 60% reduction from the prior year.
From a remediation perspective, Air Products is directly involved in projects at 10 current or former facilities and some 30 off-site locations where many other parties are included. Where we have been legitimately named as a Potentially Responsible Party, the company enters into appropriate agreements with federal or state authorities.
GETTING TO ZERO AT CALVERT CITY
At the Calvert City, Kentucky, Emulsions plant, reactors are cleaned periodically with a caustic methanol-based chemical cleaning solution called "Chem Clean." In the past, Chem Clean was stored and reused until it became "spent" with solids and high water content and had to be disposed of as hazardous waste. Then plant personnel initiated a program to use Chem Clean in the site's wastewater treatment system, and disposal of Chem Clean was reduced to zero in 2005. Not only does this keep over 500 tons of hazardous waste from being shipped off-site, it also saves over $300,000 a year in disposal costs and has improved reactor performance at the plant due to more regular turnover of the Chem Clean.
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