(EnergyAsia, December 31, Thursday) --- Linde Gas Singapore Pte Ltd, a subsidiary of German’s Linde Gas, has started up its new S$25 million carbon dioxide (CO2) plant on Jurong Island in Singapore. (US$1=S$1.4).

The plant produces approximately 100 tons per day of liquid carbon dioxide to double the local production capacity, making Linde the largest merchant producer of the gas in Singapore.

The company said the plant will also substantially reduce Singapore’s dependence on imports and provide cost benefits to customers through a local production source. Previously, Singapore imported approximately 50 tons per day of the gas, mainly from Malaysia.

The new plant, which is sited next to an existing Linde industrial gas plant, will utilise by-product carbon dioxide generated from the synthesis gas production process at the site, thus helping reduce carbon emissions. The company will also provide more efficient technology solutions, supply and service in a wide range of applications such as those for the food and beverage, fabrication, chemicals, pharmaceutical and water treatment industries.

Sanjiv Lamba, who heads Linde’s business in South and East Asia, said:

“Singapore has always been an important market for Linde and we are confident about the long term growth prospects for the industry here. 

With this new plant, we aim to play an even more significant role in the carbon dioxide supply chain, meeting the demands of both the local and export markets by offering faster and more efficient delivery.

“Despite the economic crisis, carbon dioxide (sales) volumes have remained strong in 2009, with demand from the food and beverage industry particularly stable. Across Asia, carbon dioxide demand is expected to grow between five and seven percent per year over the next few years. 

We see good prospects in the fabrication and chemicals sectors, and we are leveraging Linde’s technological strength to develop a number of new applications to further grow our carbon dioxide business.”

Tan Choon Shian, deputy managing director of the Economic Development Board (EDB), said:

“We warmly welcome Linde as a key technological player in Singapore’s chemical industry. Linde’s two new facilities are testimony of the company’s trust and confidence in Singapore as a strategic base to grow their presence in the region. We look forward to partnering them in future collaborations to bring new and efficient solutions to customers on Jurong Island.”

Tapping on the growth in demand for electronic specialty gases (ESG) in Singapore and the region, Linde has built up a supply chain facility on Jurong Island to serve as its regional distribution and storage hub.

Last year, Linde Gas Singapore invested S$30 million into expanding an existing hydrogen, carbon monoxide and synthesis gas (HyCO) plant on Jurong Island to supply Lucite International Singapore Pte Ltd with carbon monoxide for their new Alpha 1 project.

The Linde Group is a world leading gases and engineering company with almost 50,000 employees in its operations around 100 countries.