The CO2 has been contracted by Airgas USA. The company will liquefy the gas at a nearby facility that is expected to begin operation by the end of 2018.
The US-based biofuel producer Pacific Ethanol has reached an agreement with Airgas USA to sell it CO2 out of its Stockton, California plant. Airgas USA, a supplier of gases, welding equipment and supplies, and safety products, plans to construct a liquid CO2 production plant next to the Stockton facility.
Neil Koehler, Pacific Ethanol's president and CEO, said: "The opportunity to utilize the CO2 from our ethanol production process as another co-product for sale further diversifies our revenues and improves Pacific Ethanol's profitability. We anticipate Airgas’s new CO2 processing plant in Stockton to begin operations by the end of 2018 and to contribute at least $1.0 million a year in operating income.
Airgas USA is a subsidiary of the French company Air Liquide, the world’s largest supplier of industrial gasses by revenue, reaching €20.3 billion in 2017.
Pacific Ethanol bought Illinois Corn Processing in July 2017 for $76 million (€66m). The ICP facility was adjacent to Pacific Ethanol’s Pekin facility and produced 90 million gallons (409 million litres) of ethanol, alcohol, dry distillers grain and corn oil.