Praxair, Inc. has further fortified its position in the Eastern US carbon dioxide (CO2) market after signing a long-term contract to purchase by-product CO2 from leading industrial blasting products and services provider, US Nitrogen LLC.

The Tier One player will build, own and operate a new CO2 purification and liquefaction facility in the Eastern region of the US, this time at US Nitrogen’s ammonia plant in Tennessee, US. When the plant is completed, Praxair will own a total of seven sites of this kind throughout Eastern US.

The new facility, which is expected to start up towards the end of 2017, will purify by-product CO2 and produce liquid CO2 for distribution throughout the Southeastern and Mid-Atlantic regions of the US.

We have a diverse portfolio of CO2 sources in the Eastern region of the US and this project, when completed, will create more density and efficiency in Praxair’s supply network

This new addition will further stamp Praxair’s presence across the Eastern region of America and strengthen its supply position, as it already operates several similar CO2 facilities in Alabama, Georgia, Tennessee, Virginia and West Virginia.

The corporation previously signed a similar long-term agreement with Delaware City Refining Company back in July 2015, in which the US industrial gas giant will build, own and operate another 450 tonnes per day (tpd) CO2 purification and liquefaction plant. This plant is still under construction but is set to come on-stream later this year.

Todd Lawson, Vice-President of Praxair’s East Region Industrial Gases Business, underlined, “Through agreements such as this, we continue to position ourselves to serve growing customer requirements, particularly in the food and beverage segment.”

“We have a diverse portfolio of CO2 sources in the Eastern region of the US and this project, when completed, will create more density and efficiency in Praxair’s supply network.”

 

According to gasworld Business Intelligence, the CO2 market in the Southeast and Mid-Atlantic regions of the US generated revenues of approximately $940m in 2014. In the same year, over 70% of CO2 volumes was delivered as bulk liquid CO2, with the food and beverage industry being the largest consumer in both regions.