Praxair, Inc. has signed a long-term agreement with Delaware City Refining Company, owned by PBF Energy.
The Connecticut company had earlier sought a permit under the Coastal Zone Act for the plant.
As previously disclosed, Praxair will purchase crude carbon dioxide from the refinery. Praxair will build, own and operate a 450-ton-per-day carbon dioxide purification and liquefaction plant at the refinery,The plant will replace an existing facility.
No price tag was released for the project.
The process produces beverage-quality liquid carbon dioxide for distribution into the Northeastern U.S. Praxair already supplies Delaware City Refining with nitrogen for its operations.
The carbon dioxide plant is yet another positive development for the refinery that half a dozen years ago had been closed and slated for demolition under previous owner Valero.
The refinery was the first acquired and overhauled by newly formed PBF Energy, which went on to acquire refineries in nearby Paulsboro, NJ and, Toledo, OH. A state financial package was used in acquiring and reopening the refinery.
PBF recently announced an agreement to acquire a refinery outside New Orleans from a joint venture of Exxon and Venezuela’s government owned oil company.
PBF shelved plans for a $1 billion clean fuels project at the refinery and invested $100 million or more in rail facilities that supply crude oil from North Dakota and Canada.
This new carbon dioxide plant, which will begin serving customers in 2016, further strengthens Praxair’s supply position in the Northeast, the company stated.
Praxair previously started up a 450-ton-per-day carbon dioxide purification facility in Hopewell, VA and also operates carbon dioxide facilities in southeastern Canada.
“Our growing network of carbon dioxide recovery plants and depots makes Praxair the premiere source of purified carbon dioxide in the Northeast,” said Jeff Barnhard, vice president, east region for Praxair’s U.S. industrial gases business. “We are pleased to be expanding our relationship with Delaware City Refining and look forward to continuing to serve food and beverage and other carbon dioxide customers in the future. Sustainability is important to Praxair as well as to our suppliers and customers. By recovering this resource, we are able to meet our customers’ needs while making beneficial use of carbon dioxide from Delaware City Refining.”
Delaware City Refinery Manager José Dominguez said, “We look forward to working with Praxair on this important project, which in turn will support other businesses in the region.”
Praxair, Inc., a Fortune 250 company with 2014 sales of $12.3 billion, is the largest industrial gases company in North and South America and one of the largest worldwide suppliers.
The company produces, sells and distributes atmospheric, process and specialty gases, and high-performance surface coatings.
