Industrial gas giant Praxair, Inc. has acquired a carbon dioxide (CO2) purification and liquefaction plant from CO2 production and distribution outfit PureCO2, LP.
Under the terms of the transaction, of which financial details were not disclosed, Praxair will now own and operate the plant in Utah which produces approximately 300 tonnes per day (tpd) of CO2.
The acquired plant capacity will strengthen the Tier One player’s position in the Western region, where it will primarily serve the food and beverage, metal fabrication and water treatment end user markets.
Armando Botello, Vice-President, west region for Praxair’s US industrial gases business, signified, “The addition of this facility to Praxair’s network of CO2 plants will further enable us to serve a growing customer base within the greater Salt Lake region, particularly in the food and beverage segment.”
“This plant will expand our supply network west of the Rockies, adding to our already diverse portfolio of CO2 sources along the West Coast of the US.”
According to gasworld Business Intelligence, the CO2 market in the Rocky Mountain region generated revenues of approximately $150m in 2015. Senior Business Analyst James Barr highlighted, “There are currently eight CO2 liquefaction plants in operation in the Rocky Mountain region, with this acquisition resulting in Praxair controlling almost 50% of the installed capacity.”
The takeover of PureCO2’s plant brings Praxair’s total to four, as it already operates three other plants in the region; two in Wyoming and one in Colorado.