The new food-grade liquid CO₂ manufacturing plant of Sino Africa Gases is now officially established.

The plant, located in Newcastle, KwaZulu-Natal, was funded by the National Empowerment Fund (NEF), in collaboration with the Department of Trade, Industry and Competition (dtic).

Sino Africa Gases, as a black-owned startup company, received R36.5-million from the NEF and an additional R24-million in grant funding from the dtic’s Black Industrialists Scheme. This enabled the company to set up the plant and cover essential working capital needs.

The total project cost was about R61.5-million, supplemented by a contribution from the founders.

"This initiative not only promotes local manufacturing and ownership but also supports import substitution in this critical sector and job creation. We are proud to co-finance this project, which aligns with our apex priorities of industrialisation and transformation in South Africa," dtic acting deputy director-general of incentives Susan Mangole said on November 1.

"This partnership exemplifies our dedication to fostering black-owned businesses in key industrial sectors. With Sino Africa Gases now operational, we are excited to witness the positive impact it will have on job creation and local economic development," NEF acting CEO Mziwabantu Dayimani added.

The project was founded by engineers Sibusiso Sibisi and Sipho Magudulela. It repurposes excess CO₂ from local manufacturer Brother Cisa to produce food-grade liquid CO₂. The plant has a production capacity of 1 500 kg an hour of liquid CO₂.

The project created 110 jobs, 21 of which are permanent and 89 during construction.

By capturing excess CO₂ that would otherwise be vented into the atmosphere, Sino Africa Gases effectively recycles a waste product into a valuable resource, reducing greenhouse-gas emissions, while contributing to a circular economy.

Puregas, as a primary offtaker, plays an aggregator role, placing the product with various multiple end-users. The new supply primarily benefits the beverage market.

"This project showcases the potential of recycling CO₂ to create a high-demand product. By harnessing waste gas, we are contributing to a sustainable future while addressing the needs of various industries,” Sibisi said.

"The support from the NEF and the dtic has been instrumental in bringing our vision to life. We are committed to delivering innovative solutions that serve local markets and have the potential for export in the Southern African Development Community region," Magudulela added.

The plant’s strategic location in Newcastle leverages existing gas infrastructure, providing local employment and local procurement opportunities.