Praxair, Inc. (NYSE: PX) has signed a 15-year contract with Osage Bio Products, an affiliate of Osage Bio Energy, for the purchase of carbon dioxide that is produced from Osage’s barley-to-ethanol bio-processing operations in Hopewell, Va. Carbon dioxide is a by-product of ethanol fermentation.
The carbon dioxide will be purified and liquefied to produce up to 450 tons per day from Praxair’s new plant, scheduled for start up in the fourth quarter of 2011. The carbon dioxide will be used primarily in food freezing and processing, and for beverage applications.
“Our intention is to build a world-class facility at the Osage Bio Energy plant in Hopewell, which will help us better serve our growing customer base in the East Region,” said Ted Trumpp, vice president, East Region, for Praxair’s North American Industrial Gases business unit.
“Biogenic carbon dioxide from our fermentation process is a wonderful source for food grade applications,” said Craig Shealy, president and CEO of Osage Bio Energy. “Praxair is a top-tier industrial gas company, and we are excited to work with them to co-locate a plant on our site.”
Osage Bio Energy’s first plant, Appomattox Bio Energy, located in Hopewell, Va., is targeted to start up in August 2010. When complete, it will be the first commercial scale barley-to-ethanol processing plant in the United States, producing 65 million gallons of ethanol per year.