SOUTH AFRICA – Sino Africa Gases has launched a new food-grade liquid CO2 production facility in Newcastle, KwaZulu-Natal.
This development is backed financially by the National Empowerment Fund (NEF) and the Department of Trade, Industry and Competition (DTIC).
The black-owned startup received US$207K from the NEF, supplemented by an additional R24 million through the DTIC’s Black Industrialists Scheme.
With this combined funding, Sino Africa Gases was able to cover its plant setup costs and secure essential working capital.
Susan Mangole, acting deputy director-general of incentives at DTIC, stated on November 1 that the initiative supports local manufacturing, ownership, job creation, and reduces reliance on imports in a critical industry.
She emphasized that the project aligns with South Africa’s priorities for industrialization and economic transformation.
NEF’s acting CEO, Mziwabantu Dayimani, added that the venture exemplifies efforts to strengthen black-owned enterprises in key sectors. With the plant now operational, he anticipates positive impacts on job creation and regional economic growth.
Engineers Sibusiso Sibisi and Sipho Magudulela, the founders of Sino Africa Gases, established the facility to repurpose excess CO2 emissions from local manufacturer Brother Cisa into food-grade liquid CO2.
The plant has a production capacity of 1,500 kilograms of liquid CO2 per hour.
In terms of employment, the project generated 110 jobs, with 21 positions being permanent and the remaining 89 jobs created during construction.
The plant contributes to sustainability by capturing CO2 that would otherwise be released into the atmosphere, converting this waste gas into a usable resource.
This process also aligns with broader goals of reducing greenhouse gas emissions and promoting a circular economy.
Puregas, the primary buyer, is set to distribute the CO2 to various end-users, with much of the supply intended for the beverage sector.
The company plans to tap into the expanding food-grade carbon dioxide market, which was valued at US$7.7 billion in 2022 and is projected to reach US$13.23 billion by 2030.
This growth is primarily driven by the increased production and consumption of meat, seafood, and carbonated beverages.
Food-grade CO₂ serves multiple roles in the food and beverage industry, including cryogenic freezing, carbonating drinks, preserving frozen poultry, and stabilizing pH levels in various products.
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