Pacific Ethanol to sell CO2 from California plant

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.