Puregas entered the beverage grade carbon dioxide market early in 2016 with the supply of 600 tonnes of carbon dioxide to customers in Botswana, Namibia, Zimbabwe, Zambia, Lesotho and Swaziland when there was a lengthy shut down of the major South African carbon dioxide source. This supply was managed through a Joint Venture company between Puregas and Air Products, AfriCO₂, which was formed to provide a secure supply of beverage grade carbon dioxide to customers outside South Africa. Product was supplied to both Coca-Cola and ABInBev sites in each of the countries mentioned. AfriCO₂ continues to supply product on an ongoing basis to customers in Zambia and Zimbabwe.
Puregas currently has one source of beverage grade carbon dioxide in Johannesburg from a recovery plant that is exclusively managed by Puregas on a customer’s site. A second source, again from a customer plant that will be managed by Puregas, will commence production in the last quarter of 2018 in the Western Cape. The carbon dioxide produced at both plants will meet Coca-Cola and Pepsi specifications.
Puregas regularly supplies beverage grade carbon dioxide to several ABInBev sites in South Africa, and the customer base will expand as additional product becomes available from the second production source.
Puregas shareholders and management have extensive knowledge of the carbon dioxide business in both Africa and globally, collectively with more than 40 years of experience in this market. Puregas has identified the carbon dioxide market as having a strong growth potential, which fits very well into the existing Puregas model and competencies, and it will continue to be a focus area for Puregas in the future.