Barley ethanol producer to sell carbon dioxide to food industry

Ethanol producer Osage Bio Products is to sell carbon dioxide by-products from its ethanol plant in Hopewell, Virginia, for use in the food industry.

The firm has signed a 15-year deal to supply the otherwise unwanted emissions to industrial gas supplier Praxair, Inc., from the fourth quarter of 2011.

Praxair, which has its head office in Danbury, Connecticut, is planning to build a “world class facility” at the Hopewell site in order to capture and liquefy 450 tons of carbon dioxide a day.

The firm is one of the largest industrial gas providers in the world, with $9 billion annual sales.

Osage, which is backed by a $300 million investment from equity group First Reserve Corporation, is due to start up its Hopewell ethanol plant this August.

Called Appomattox Bio Energy, the plant will be one of the first commercial-scale barley-to-ethanol processing plants in the US, producing 65 million gallons of ethanol each year.

Food grade

The agreement with Praxair will see carbon dioxide from the fermentation process provided for use in food freezing and processing applications, and also to beverage manufacturers.

Craig Shealy, president and CEO of Osage Bio Energy, said; “Biogenic carbon dioxide from our fermentation process is a wonderful source for food grade applications. 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 has its HQ in Glen Allen, Virginia, and has been working to develop its first commercial-scale barley-to-ethanol plant since January 2007.

source: brighterenergy.org