Joint press release from Süd-Chemie and Linde: Süd-Chemie and Linde launch production of climate-friendly biofuels

Munich, 7 May 2009 - Süd-Chemie AG, a leading manufacturers of
catalysts and adsorbents, and The Linde Group, a leading global
company in the sector of gases and engineering, have launched the
production of climate-friendly biofuels based on lignocellulosic
biomass in Munich.

In the presence of the EC Commissioner for Energy and Transport,
Andris Piebalgs, and the Bavarian Minister of Economics,
Infrastructure, Transport and Technology, Martin Zeil, a pilot plant
was officially opened at Süd-Chemie's research centre in
Munich-Obersendling on 27 April 2009. This pilot plant will be using
cereal straw to manufacture up to two tons of bioethanol fuel
annually.

The process developed by Süd-Chemie and Linde allows biofuels, such
as ethanol, to be extracted from plant matter containing cellulose,
for instance wheat straw or maize straw, with the aid of enzymes
created using biotechnological methods. The partners in this
currently unique alliance offer excellent mutual benefits. Whereas
Süd-Chemie's expertise lies in the sectors of biocatalysis and
bioprocess engineering, Linde's subsidiary, Linde-KCA-Dresden, offers
extensive experience in implementing chemical and biotechnological
processes on a commercial scale. Compared with the first-generation
biofuels already in use today, such as biodiesel made from rapeseed
oil, these second-generation biofuels according to experts offer a
significant improvement in terms of climate and energy balances,
including higher potential for reducing CO2 emissions. In addition,
second-generation biofuels do not compete with the cultivation of
either food or animal feed.

The EC Commission is expecting second-generation biofuels to make a
key contribution to its sustainable energy policy. These biofuels
represent a form of renewable energy that can be used to reduce our
high dependence on oil on a lasting basis, especially in the
transport sector. The new legislation package to implement the EC's
climate and energy policy therefore specifically promotes
second-generation biofuels.

The pilot plant now opened represents a scaled-down version of the
entire integrated manufacturing process required to convert straw
into bioethanol. Construction of a larger demonstration plant
producing several thousand tons of bioethanol each year is due to
commence in the near future. Bavarian Economics Minister Zeil said:
"Biofuels are a topic of enormous future significance. The pilot
plant is an important step forward toward a ,biorefinery', in which
renewable plant-based raw materials are being converted to valuable
base chemicals using modern biotechnological methods. Ideally, the
whole plant may be utilized in these processes. I would appreciate it
very much, if Süd-Chemie and Linde would decide for a Bavarian
location for their demonstration plant".

Following this step, marketable large-scale plants for the commercial
production of second-generation biofuels from cereal straw and other
cellulosic residue will be within reach. A competent partnership will
be available to assist potential customers, including ethanol
manufacturers, companies active in the petroleum industry, or other
enterprises in the industrial and agricultural sectors, as well as
investors, in planning and constructing these plants on a worldwide
scale.

Edgar Binnemann, Member of the Managing Board and CFO of Süd-Chemie
AG, said: "The start-up of this pilot plant demonstrates the
systematic implementation of Süd-Chemie's strategy of developing
sustainable and ecological manufacturing processes for
climate-friendly biofuels to market maturity in an economically
efficient manner, based on our considerable expertise in the fields
of biocatalysis and bioprocess engineering."

Dr Aldo Belloni, Member of the Executive Board of Linde AG,
confirmed: "Based on our know-how and long experience in the
production of climate-friendly fuels, we are making a significant
contribution to the creation of low-emission energy supplies for the
future. We are delighted that with the start-up of this innovative
pilot plant, we are now able to produce biofuel on a sustainable and
economically viable basis."

About second-generation biofuels
Today's already widely-marketed first-generation biofuels are
produced solely from plant matter containing either oil, starch or
sugar, for instance biodiesel made from rapeseed oil or bioethanol
made from starch or sugar. In the case of second-generation biofuels,
however, use is not made of any starch or oil-bearing parts of
plants, but only of cellulose-based matter. In this way, more fuel is
obtained as a result of the higher energetic yield. Furthermore, this
fuel does not compete with food or animal feed, since those parts of
the plants containing starch, for instance maize kernels, can still
be used to produce food. Second-generation biofuels are also more
climate-friendly than fossil fuels, such as oil or natural gas, since
during their growth, plants absorb from the atmosphere exactly the
amount of climate gas, namely carbon dioxide, that is subsequently
emitted when they are used for engine combustion. The introduction of
climate-friendly second-generation biofuels is supported by the
legislative framework prevailing in both the US and the EU. In the
US, a law passed at the end of 2007 stipulates that by 2022,
approximately 15 percent of the country's annual petrol consumption
(currently 137 bn litres) is to be replaced by biofuels, almost 60
percent of this based on lignocellulosic residues. The Renewable
Energy Directive passed by the EC Parliament in December 2008
requires that by 2020, renewable sources of energy must account for
at least 10 percent of the fuel used to transport goods and
passengers. The annual volumes of surplus cereal straw currently
available in the EU would produce more than enough second-generation
bioethanol to meet the EC's 10-percent substitution goal.

About Süd-Chemie
Süd-Chemie (www.sud-chemie.com) is a publicly quoted (Security
Identification Number ISIN: DE0007292005; WKN: 729200) specialty
chemicals company headquartered in Munich, Germany and operating on a
worldwide scale. Key markets served by its Adsorbents Division
include the consumer goods, packaging and foundry industries, as well
water treatment. Products manufactured by the Catalysts Division
offer solutions for the chemical, petrochemical and refinery
industries, for energy storage and hydrogen production, as well as
off-gas purification. The common denominator of all Süd-Chemie
products and services is the efficient and sparing use of natural
resources to enhance the quality of life for humans and the
environment. The Süd-Chemie Group generated sales of ¤1.191 billion
in 2008, approx. 80% of these outside Germany. At the end of March
2009, the group employed more than 6,300 people in its 80 sales and
production companies worldwide.

About The Linde Group and Linde-KCA
The Linde Group is a world leading gases and engineering company with
almost 52,000 employees working in around 100 countries worldwide. In
the 2008 financial year it achieved sales of EUR 12.7 billion. The
strategy of The Linde Group is geared towards sustainable
earnings-based growth and focuses on the expansion of its
international business with forward-looking products and services.
Linde acts responsibly towards its shareholders, business partners,
employees, society and the environment - in every one of its business
areas, regions and locations across the globe. Linde is committed to
technologies and products that unite the goals of customer value and
sustainable development.
For more information, see The Linde Group online at
http://www.linde.com.
Linde-KCA-Dresden GmbH, a subsidiary in The Linde Group, is a leading
company involved in the planning and construction of chemical, gas,
biotechnology and pharmaceutical plants.
For more information, please see Linde-KCA online at
http://www.linde-kca.com.

For additional information:

Linde AG Linde AG
Press Investor Relations
Uwe Wolfinger Thomas Eisenlohr
Telephone: +49.89.35757-1320 Telephone: +49.89.35757-1330

Süd-Chemie AG Süd-Chemie AG
Corporate Communications Corporate Communications
Patrick Salchow Jochen Orlowski
Telephone: +49.89.5110-250 Telephone: +49.89.5110-247

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