Recovered
Carbon dioxide: Balancing Regional Supply and Demand
SRI Releases Comprehensive Global Report
MENLO
PARK, CA. February
8, 2007— Companies who recover carbon dioxide
as a by-product of other industrial processes won’t
have trouble selling their product – as long as
they produce it where it is in demand. Today, SRI
Consulting (SRIC) released its new Carbon
Dioxide report that provides current and comprehensive
information on the global carbon dioxide industry and
trends.
Koon-Ling
Ring, Program Director of SRIC’s Chemical
Economics Handbook (CEH) group said, “Due to the
regulatory developments that phased out MTBE in the United
States, we’re seeing an increased demand for ethanol-based
fuel. As a result there has been a marked increase in
the number of ethanol plants starting up, especially
in the U.S. Cornbelt region.” Ms. Ring added, “Carbon
dioxide is produced as a by-product from these operations,
and supplies have been increasing steadily in the past
few years.”
SRIC’s Carbon
Dioxide report shows that this trend is continuing,
with many ethanol plants in the planning stage. Future
sources for carbon dioxide are expected to come mostly
from ethanol fermentation plants, as some ammonia plants
are being shut down due to competition from less expensive
offshore production or lower cost import replacements.
In 2005,
the volume of gaseous carbon dioxide consumed in the United
States was about 35 million metric tons, which exceeded
the volume of liquid carbon dioxide produced. An
estimated 30 million metric tons of carbon dioxide were
recovered and pipelined for use in U.S. oil fields to meet
the substantial market for gaseous carbon dioxide used
in enhanced oil recovery.
Lead
Author and Senior Consultant Bala Suresh said, “The
primary challenge faced by carbon dioxide producing companies
is balancing regional supply and demand.” Mr.
Suresh added, “Carbon dioxide sources may not exist
where demand is greatest.”
Demand
for carbon dioxide tends to be highest during the summer
months when some manufacturing plants which produce carbon
dioxide as a by-product may be down for turnaround. Carbon
dioxide reaches its market through a network of highway
tankers, re-supply depots and railcars. As a result
the carbon dioxide business is highly regional.
SRIC’s Carbon
Dioxide report reveals that China continues
to emerge as an important player in this global market.
For the past few years, the country’s consumption
has been growing at rates close to 15% to 20% annually
and is expected to continue growing at this rate for
the next five years. Capacity in China has almost quadrupled
in the past decade after it opened its doors to non-Chinese
enterprises.
SRIC’s
239 page Carbon
Dioxide report contains comprehensive global coverage
as well as producer details and market segments by geographic
region. For additional information about the Carbon
Dioxide report, please contact Bala Suresh at bsuresh@sriconsulting.com or
650 384 4361 or visit the website at www.sriconsulting.com for
SRI Consulting’s complete offering of reports.
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