Praxair, Inc. has signed a 15-year contract with Osage Bio Products, an affiliate of Osage Bio Energy, for the purchase of carbon dioxide that is produced from Osage’s barley-to-ethanol bio-processing operations in Hopewell, Va. (Earlier post.) Carbon dioxide is a by-product of ethanol fermentation.

The carbon dioxide will be purified and liquefied to produce up to 450 tons per day from Praxair’s new plant, scheduled for start up in the fourth quarter of 2011. The carbon dioxide will be used primarily in food freezing and processing, and for beverage applications.

Biogenic carbon dioxide from our fermentation process is a wonderful source for food grade applications.

—Craig Shealy, president and CEO of Osage Bio Energy

Osage Bio Energy’s first plant, Appomattox Bio Energy, located in Hopewell, Va., is targeted to start up in August 2010. When complete, it will be the first commercial scale barley-to-ethanol processing plant in the United States, producing 65 million gallons of ethanol per year.