What is a liquid carbon dioxide project report?
A liquid carbon dioxide project report is a detailed project report (DPR) for a plant that captures CO2 gas, cleans it, and compresses and chills it into liquid for sale. It sets out the gas source, process, machinery, licences, project cost, means of finance, five-year projections, DSCR and break-even that a lender reviews.
Promoters, distillery owners adding a CO2 recovery unit and gas distributors use it to size the plant and raise a term loan; banks use it to judge repayment.
Also known as: liquid CO2 plant project report, CO2 recovery plant DPR, project report on liquid carbon dioxide, liquid carbon dioxide business plan.
Liquid carbon dioxide manufacturing plant cost in India
Our sample report models a 31 MT per day CO2 recovery unit beside a distillery, running 330 days a year for 10,230 MT of capacity. It starts at 60% utilisation, reaches 80% in Year 5 and sells liquid CO2 at ₹8,310 per MT ex-factory.
Plant and machinery is the largest cost head, followed by building and civil works for the compressor house, refrigeration room and tank foundations.
| Land and site development | 39.01 |
|---|---|
| Building and civil works | 206.57 |
| Plant and machinery | 361.89 |
| Other fixed assets | 49.43 |
| Contingencies | 28.42 |
| Preliminary and pre-operative | 17.13 |
| Working capital margin | 16.56 |
| Total | 719.01 |
| Promoter's contribution (25%) | 179.75 |
|---|---|
| Term loan from bank (75%) | 539.26 |
| Cash credit limit (separate) | 49.67 |
| Total project cost | 719.01 |
Term loan at 10.5% with a 6-month moratorium and 54 monthly instalments; lowest yearly DSCR 1.44. All figures are illustrative.
Liquid carbon dioxide manufacturing process
Fermentation gas is already rich in CO2, so the plant's job is to remove traces of alcohol, sulphur compounds, water and air, then liquefy what is left. The sequence below is the one modelled in the sample report.
- Gas collection
CO2 leaving the distillery fermenters passes a foam trap into a gas balloon, which evens out the flow to the compressor.
- Water scrubbing
A water wash column strips out ethanol and other water-soluble impurities that would taint beverage-grade gas.
- Compression
An oil-free two-stage compressor with intercoolers lifts the gas to about 16–18 bar, so no lubricant reaches the product.
- Purification
An oxidiser scrubber and activated carbon beds take out hydrogen sulphide, other sulphur compounds and odour.
- Drying
Twin molecular sieve towers remove moisture, one drying while the other regenerates, so ice cannot block the liquefier.
- Liquefaction and stripping
An ammonia refrigeration unit condenses the CO2, and a stripper column with reboiler vents oxygen and nitrogen that stay as gas.
- Storage and dispatch
Liquid CO2 goes to insulated storage tanks and leaves by road tanker or in filled cylinders after a purity check.
Where does a liquid CO2 plant get its gas?
The gas source decides most of the plant design, the energy bill and how many days a year you can run. Settle it before any machinery quotation.
| Fermentation recovery | Gas from grain or molasses distillery and brewery fermenters is already mostly CO2, so it needs the least clean-up and energy. Output follows the distillery's run days. This is the route in our sample report. |
|---|---|
| Flue gas with amine capture | Fuel such as natural gas, diesel or biomass is burnt, the CO2 is absorbed in an amine (MEA) solution and released in a stripper. It can be sited near buyers, but fuel and steam add running cost. |
| Chemical plant off-gas | Ammonia, hydrogen and ethylene oxide plants vent concentrated CO2. Raw gas is cheap, but the unit has to sit next to the host plant under a long-term supply contract. |
| Lime kiln and process off-gas | Kilns and some chemical processes give a dilute, dusty CO2 stream. It needs more washing and purification and usually suits industrial-grade sales. |
Raw materials and inputs for liquid CO2
A recovery unit buys its raw gas from the distillery, usually at a fixed rate per tonne under a long agreement that also covers land on the distillery site. Electricity for the compressor and refrigeration plant is the biggest input, which is why the sample shows it with raw materials.
| Input | Share of cost | Year 3 (₹ lakh) |
|---|---|---|
| Electricity for compression and liquefaction | 55% | 93.75 |
| Raw CO2 gas from distillery fermentation | 30% | 51.14 |
| Purification chemicals and adsorbents | 10% | 17.05 |
| Refrigerant and cooling water chemicals | 5% | 8.52 |
| Total | 100% | 170.46 |
Activated carbon and molecular sieve are replaced on a schedule; a report that leaves them out under-states running cost.
Machinery for a CO2 recovery and liquefaction plant
The oil-free compressor is the most expensive item in the sample, closely followed by the refrigeration unit and liquefier. Together they decide the power bill, so compare quotations on kWh per tonne as well as price.
| Machine | What it does | Sample cost (₹ lakh) |
|---|---|---|
| Two-stage oil-free CO2 compressor | Raises gas to liquefaction pressure | 79.62 |
| Ammonia refrigeration unit and CO2 liquefier | Chills and condenses the gas | 72.38 |
| Insulated liquid CO2 storage tanks | Hold several days of output | 57.90 |
| Oxidiser scrubber and activated carbon filters | Remove sulphur and odour | 28.95 |
| Molecular sieve dryer | Removes moisture | 28.95 |
| Stripper column with reboiler | Vents non-condensable gases | 28.95 |
| Foam trap and water scrubber | Catch foam and wash out alcohol | 21.72 |
| Tanker loading and cylinder filling station | Dispatches the product | 21.71 |
| Online gas analysers and control system | Track purity and run the plant | 21.71 |
| Total plant and machinery | 361.89 | |
Costs are the sample report's estimates for a 31 MT per day unit. Road tankers are not included; get current quotations before you finalise.
How many people does a liquid CO2 plant need?
A CO2 recovery unit runs round the clock but is largely automatic, so the team is small. The sample plans for 15 people across three shifts, with operators trained on ammonia refrigeration and pressure vessel safety.
| Category | Number | Year 1 cost (₹ lakh) |
|---|---|---|
| Management, supervision and administration | 2 | 7.80 |
| Skilled workers and operators | 5 | 12.30 |
| Semi-skilled and unskilled workers | 8 | 12.96 |
| Total | 15 | 33.06 |
Licences and approvals for a liquid CO2 plant
Liquid CO2 is stored and moved under pressure, so the Petroleum and Explosives Safety Organisation (PESO) licences matter as much as the usual factory approvals.
| Storage tanks | PESO licence in Form LS-1A or LS-1B under the Static and Mobile Pressure Vessels (Unfired) Rules to store compressed gas, with a no objection certificate from the district authority |
|---|---|
| Road tankers | PESO licence in Form LS-2 for each vessel used to transport compressed gas |
| Cylinder filling | PESO licence in Form E or F under the Gas Cylinders Rules, 2016, applied for online through the National Single Window System |
| Product standard | IS 307:2024, the third revision of the BIS specification for carbon dioxide; the BIS page shows no mandatory certification as of October 2026 |
| GST | 18% under the general Chapter 28 entry; carbon dioxide is classed under heading 2811 |
| Other approvals | Udyam and GST registration, consent to establish and operate from the State Pollution Control Board, factory licence and fire NOC |
Who buys liquid carbon dioxide?
Beverage carbonation is the anchor demand, and it peaks in summer. Dry ice, welding and fire safety buyers spread sales across the year. Bottlers pay more for food-grade gas but audit purity and expect assured supply.
- Soft drink, soda and packaged beverage bottlers
- Dry ice makers serving cold chain and food logistics
- Welding gas distributors and fabrication units
- Fire extinguisher makers and refillers
- Water treatment plants using CO2 for pH control
Freight sets the market: liquid CO2 travels in insulated pressure tankers, so most plants sell within a few hundred kilometres. A new distillery-based unit wins where the nearest supplier is far away.
Mistakes that weaken a liquid carbon dioxide project report
- Assuming raw gas every day of the year
Distilleries stop for maintenance and some run seasonally. Run days and storage must match the host plant's schedule, or sales will fall short.
- No written raw gas agreement
Lenders look for a long-term contract covering gas quantity, price, land and exit terms. A verbal understanding with the distillery weakens the case.
- Under-stating electricity
Compression and refrigeration run continuously. Using an average tariff, or leaving out demand charges, inflates profit and DSCR.
- Pricing all output as food grade
Not every tonne goes to bottlers. Welding and industrial buyers pay less, so the report needs a realistic sales mix.
- Forgetting tankers and cylinders
Delivery needs road tankers or a cylinder pool, each with PESO licences. Leaving them out of cost or working capital stalls dispatch.
How NPCS helps you plan a liquid CO2 plant
- Gas source and capacitySize the plant to the distillery's or host plant's gas flow and run days.
- Technology and suppliersCompare recovery and flue gas routes and get compressor and liquefier quotations.
- Bank-ready project reportProjections, DSCR, power cost and working capital in your lender's format.
- PESO and plant layoutTank, tanker and filling licences, layout and the approvals list for your state.
NPCS's published client list includes an assignment for liquid carbon dioxide and 269 across specialty chemicals, for entrepreneurs and companies in India and abroad since 1994.
What's inside the liquid carbon dioxide sample report
- Introduction
- Uses and applications
- Market potential
- Manufacturing process
- Raw materials
- Plant and machinery
- Land, building and utilities
- Manpower
- Licences and approvals
- Project cost and means of finance
- Working capital
- Projected profitability
- Cash flow statement
- Projected balance sheet
- Depreciation
- Term loan repayment
- Debt service coverage
- Break-even analysis
- Financial ratios
- Key assumptions
- Conclusion
- Monthly loan repayment schedule
19 pages, five-year projections, illustrative figures.
Open sample reportFree sample or a report for your project?
| What you get | Free sample | NPCS report for your project |
|---|---|---|
| Capacity and location | Typical unit | Your capacity, site and state |
| Figures | Illustrative | Built on current prices and quotations |
| Machinery suppliers and quotations | No | Yes |
| Market survey for your region | No | Yes |
| Bank or scheme format (PMEGP, term loan) | No | Yes |
| Use for a loan application | No | Yes |
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Liquid Carbon Dioxide project report: frequently asked questions
What is the liquid carbon dioxide manufacturing plant cost in India?
Cost depends mainly on capacity, the CO2 source and how much storage and tanker capacity you build. Our sample report models a 31 MT per day recovery unit at a distillery with a total project cost of ₹719 lakh, including ₹362 lakh of plant and machinery. A flue gas plant costs more because it adds a burner, absorber and stripper. Your report works out the cost for your site.
What is the raw material for liquid CO2?
The raw material is a CO2 rich gas stream, most often from distillery fermenters, flue gas from burning fuel, or off-gas from ammonia and hydrogen plants. Electricity is the other main input, because compression and refrigeration run all day. In our sample report electricity is 55% of input cost and raw gas bought from the distillery is 30%.
How is liquid carbon dioxide made?
The gas is collected, washed with water, compressed to about 16–18 bar in an oil-free compressor, purified over oxidiser and activated carbon beds, and dried in molecular sieve towers. An ammonia refrigeration unit then condenses it to liquid, and a stripper column removes gases that do not condense. The liquid is stored in insulated tanks.
Is a liquid CO2 plant profitable?
In our illustrative sample, a 31 MT per day unit earns a net profit of ₹127 lakh on sales of ₹595 lakh in Year 3. Return on investment is 18% and break-even comes at 35% of capacity. Real profit depends on raw gas price, power tariff, run days of the gas source, tanker logistics and the share of food-grade sales.
Which licences are needed to start a liquid CO2 plant?
Besides Udyam, GST, pollution board consent and a factory licence, a CO2 plant needs PESO licences. These come under the Static and Mobile Pressure Vessels (Unfired) Rules, for storing liquid CO2 in tanks and moving it by road tanker. If you fill cylinders, you also need a PESO filling licence under the Gas Cylinders Rules, 2016.
What is the GST rate and HSN code for liquid carbon dioxide?
Carbon dioxide falls under heading 2811 (subheading 2811 21) of the customs tariff. It is not among the Chapter 28 items taxed at 5%. So it takes the general 18% rate for inorganic chemicals in the GST schedules in force from 22 September 2025. Confirm the rate for your supply with your tax adviser.
Is the liquid carbon dioxide project report PDF free, and can I use it for a loan?
The sample is free to view and download. It is an illustrative report that shows the format and depth of an NPCS report; its figures are representative and not based on a real project. It should not be submitted to a bank. For a loan, NPCS prepares a report for your own capacity, gas source, location and lender.
Sources and references
- IS 307:2024 Carbon dioxide, specification (third revision)Bureau of Indian Standards, checked Oct 2026
- FAQ on the Static and Mobile Pressure Vessels (Unfired) RulesPetroleum and Explosives Safety Organisation, checked Oct 2026
- FAQ on the Gas Cylinders Rules, 2016Petroleum and Explosives Safety Organisation, checked Oct 2026
- Notification No. 9/2025-Integrated Tax (Rate): GST rate schedulesCentral Board of Indirect Taxes and Customs, checked Oct 2026
The NPCS project team, led by Ajay Kumar Gupta
This page and its sample report are prepared and reviewed by the NPCS project team, which has written techno-economic feasibility studies and detailed project reports since 1994.
Ajay Kumar Gupta founded Niir Project Consultancy Services (NPCS) and leads the organisation. With 40 years of experience in MSME project consulting, he has built the team that has delivered more than 28,000 project reports for clients worldwide, helping entrepreneurs plan and finance profitable manufacturing businesses.
- Published
- Last updated
- Next review
- Oct 2027
- Reviewed by
- NPCS project team
This page is reviewed every 12 months, or sooner when scheme limits, GST rates, BIS rules or pollution categories change. The sample report is illustrative: its figures are generated from industry-typical ratios for a unit of this size, checked so every statement balances, and are not taken from any client project.