Showa Denko Gas Products is going to increase by 15% the output capacity of liquid carbon dioxide of its Kawasaki Plant and construct two additional units of product storage tank. The investment amounts to 3 billion yen. A METI’s subsidy (the Program for Promoting Investment to Strengthen Supply Chains) will be utilized, aiming to start construction in the coming spring and operation at the end of 2023.

The liquid carbon dioxide (LCO2) market in Japan still remains suffering the tight demand/supply situation caused by the chronic shortage of raw material sources. It is mainly attributed to the decrease in the crude gas from major sources of oil refineries and industrial consolidations. There exists a risk of further declination as the shifting to electric cars makes more progress from now on.

Kawasaki Plant gets a raw material the carbon dioxide from the chemical recycle business (KPR: for production of ammonia from used plastics) in which the parent company Showa Denko engages and is a multi-source plant having a backup function from the oil refinery.

Executive director and vice-division manager Mamoru Harada of the company said, ”We have decided the reinforcement because the KPR in Kawasaki Plant is prospective to sustain business and is deemed to be stable as a source of crude gas for carbon dioxide. We expect the investment at this time will lead to our reinforcement of supply chains.”
It is said that the increased portion is 30 thousand tons per year which makes the output capacity of the plant up to 15% more approximately. At the same time a security will be doubled to 2000 tons or so from the current 1000 tons. “The increase in security stock will enhance readiness against unexpected troubles.” (Harada)

In addition, the company introduced last year an ISO container for an inter-base transportation as a backup to the lessened supply capacity due to periodical inspections or troubles. The company also plans to make efforts to stabilize the supply condition of LCO2 in the source lacking age.

Price Revision of Air Separation Gases and LCO2

In the air separation gas business, the company is going to raise the prices of bulk and cylinder gas from the delivery on March 1, and LCO2 and dry ice on April 1. There exists the background of cost increase in electricity and transportation.　　

The air-separation gases of bulk and cylinder gases (including curdle and LGC) will be raised by 15%. The price of LCO2 will be raised by 3 yen per kg or more for delivery by tank truck, 9 yen per kg for delivery by cylinder, while that of dry ice will be raised by 7 yen per kg.