Industrial gas supplier Praxair Inc. said Tuesday it is buying carbon dioxide from Osage Bio Energy for use in food freezing and processing and drink applications.
Praxair said it signed a 15-year contract with the Osage Bio Product business. It is buying carbon dioxide that is produced by fermentation that converts barley to ethanol at an Osage facility in Hopewell, Va. It said the carbon dioxide will be purified and liquefied to make up to 450 tons per day.
The Osage facility is scheduled to start up in August. The processing of the carbon dioxide will be done at a Praxair facility that is expected to go online in the fourth quarter of 2011. The Praxair plant and the Osage plant will be on the same site.
Shares of Praxair ended Tuesday up $1.99, or 2.4 percent, to $83.49.