Kelington expands LCO2 production at second facility

Integrated engineering solutions provider Kelington Group Bhd through its 90.71% owned subsidiary Ace Gases Sdn Bhd started liquid carbon dioxide (LCO2) production at the group’s second LCO2 plant with a production capacity of 70,000 tonnes per year located at Kerteh, Terengganu. This brings the group’s production capacity of LCO2 to 120,000 tonnes per year.

At the group’s LCO2 plant, CO2 waste gas sourced from Petronas gas processing plant is purified and converted into food-grade LCO2, catering for use across diverse applications, particularly in the food and beverage (F&B) sector for the production of carbonated drinks and the creation of dry ice for food freezing.

CEO Raymond Gan said, “Kelington first ventured into LCO2 manufacturing with the commencement of the first plant, with production capacity of 50,000 tonnes per year in October 2019. Having reached its full capacity, this expansion enables us to stay ahead of the growing market demand. Commencement of the second LCO2 plant will position us for further revenue growth from our Industrial Gas segment as we now have the capacity to effectively meet rising demand.”

He added that the prospects of their LCO2 manufacturing business are promising, especially as the closure of petrochemical plants overseas due to environmental concerns have led to global shortage of LCO2, which is essential in many industrial processes.

In addition to the manufacturing facilities, Kelington has a robust support infrastructure, including storage tanks and a fleet of transportation vehicles. This facilitates the secure and efficient distribution of LCO2 both domestically and internationally.