IMARC Group’s report, titled “Carbon Dioxide Production Cost Analysis Report 2025: Industry Trends, Plant Setup, Machinery, Raw Materials, Investment Opportunities, Cost and Revenue” provides a complete roadmap for setting up a carbon dioxide production plant. It covers a comprehensive market overview to micro-level information such as unit operations involved, raw material requirements, utility requirements, infrastructure requirements, machinery and technology requirements, manpower requirements, packaging requirements, transportation requirements, etc. The report also provides detailed insights into project economics, including capital investments, project funding, operating expenses, income and expenditure projections, fixed costs vs. variable costs, direct and indirect costs, expected ROI and net present value (NPV), profit and loss account, financial analysis, etc.
Carbon dioxide (CO2) refers to a naturally occurring chemical compound that is abundantly found in Earth’s atmosphere. It is manufactured from one carbon and two oxygen atoms bonded together. It is extracted from natural sources, such as volcanic outgassing, combustion of organic matter, and the respiration processes of living aerobic organisms. Besides this, it can be obtained through man-made sources by burning fossil fuels for power generation and transport usage.
CO2 is a colorless gas with a sharp odor and sour taste, non-toxic, and does not support combustion. It is non-flammable, denser than air, and easily dissolves in water to form a carbonic acid. It has a melting point of -55.6°C, a boiling point of -78.5°C, a density of 1.977g/ml, and a vapor density of 1.53. Apart from this, it reacts with alkalis to give carbonates and bicarbonates as a product.
At present, the rising utilization of CO2 in carbonated beverages, soft drinks, and beers to make them fizzy and enhance the flavor of drinks represent one of the key factors contributing to the growth of the market. Besides this, the growing demand for large quantities of solid CO2 in large-scale refrigeration in the form of dry ice is offering a favorable market outlook. Moreover, the increasing popularity of CO2 in promoting the growth of plants in greenhouses around the world is bolstering the growth of the market. Apart from this, the rising utilization of CO2 for the extraction of metals from ores across the globe is offering lucrative growth opportunities to industry investors. In line with this, the rising adoption of CO2 as a natural preservative to inhibit the development of bacteria and other microbes and increases the shelf life of a product is propelling the growth of the market. Furthermore, the increasing demand for CO2 as a propellant in aerosol cans to dispense products, such as whipped cream and cooking sprays, is strengthening the growth of the market.
The following aspects have been covered in the report on setting up a carbon dioxide production plant:

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The report provides insights into the landscape of the carbon dioxide industry at the global level. The report also provides a segment-wise and region-wise breakup of the global carbon dioxide industry. Additionally, it also provides the price analysis of feedstocks used in the carbon dioxide manufacturing process, along with the industry profit margins.
The report also provides detailed information related to the process flow and various unit operations involved in a carbon dioxide production plant. Furthermore, information related to mass balance and raw material requirements has also been provided in the report with a list of necessary quality assurance criteria and technical tests.
The report provides a detailed location analysis covering insights into the land location, selection criteria, location significance, environmental impact, and expenditure for setting up a carbon dioxide production plant. Additionally, the report provides information related to plant layout and factors influencing the same. Furthermore, other requirements and expenditures related to machinery, raw materials, packaging, transportation, utilities, and human resources have also been covered in the report.
The report also covers a detailed analysis of the project economics for setting up a carbon dioxide production plant. This includes the analysis and detailed understanding of capital expenditure (CapEx), operating expenditure (OpEx), income projections, taxation, depreciation, liquidity analysis, profitability analysis, payback period, NPV, uncertainty analysis, and sensitivity analysis. Furthermore, the report also provides a detailed analysis of the regulatory procedures and approvals, information related to financial assistance, along with a comprehensive list of certifications required for setting up a carbon dioxide production plant.
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| Particulars | Cost (in US$) |
|---|---|
| Land and Site Development Costs | XX |
| Civil Works Costs | XX |
| Machinery Costs | XX |
| Other Capital Costs | XX |
| Particulars | In % |
|---|---|
| Raw Material Cost | XX |
| Utility Cost | XX |
| Transportation Cost | XX |
| Packaging Cost | XX |
| Salaries and Wages | XX |
| Depreciation | XX |
| Other Expenses | XX |
| Particulars | Unit | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|---|
| Total Income | US$ | XX | XX | XX | XX | XX |
| Total Expenditure | US$ | XX | XX | XX | XX | XX |
| Gross Profit | US$ | XX | XX | XX | XX | XX |
| Gross Margin | % | XX | XX | XX | XX | XX |
| Net Profit | US$ | XX | XX | XX | XX | XX |
| Net Margin | % | XX | XX | XX | XX | XX |
| Report Features | Details |
|---|---|
| Product Name | Carbon Dioxide |
| Report Coverage | Detailed Process Flow: Unit Operations Involved, Quality Assurance Criteria, Technical Tests, Mass Balance, and Raw Material Requirements Land, Location and Site Development: Selection Criteria and Significance, Location Analysis, Project Planning and Phasing of Development, Environmental Impact, Land Requirement and Costs Plant Layout: Importance and Essentials, Layout, Factors Influencing Layout Plant Machinery: Machinery Requirements, Machinery Costs, Machinery Suppliers (Provided on Request) Raw Materials: Raw Material Requirements, Raw Material Details and Procurement, Raw Material Costs, Raw Material Suppliers (Provided on Request) Packaging: Packaging Requirements, Packaging Material Details and Procurement, Packaging Costs, Packaging Material Suppliers (Provided on Request) Other Requirements and Costs: Transportation Requirements and Costs, Utility Requirements and Costs, Energy Requirements and Costs, Water Requirements and Costs, Human Resource Requirements and Costs Project Economics: Capital Costs, Techno-Economic Parameters, Income Projections, Expenditure Projections, Product Pricing and Margins, Taxation, Depreciation Financial Analysis: Liquidity Analysis, Profitability Analysis, Payback Period, Net Present Value, Internal Rate of Return, Profit and Loss Account, Uncertainty Analysis, Sensitivity Analysis, Economic Analysis Other Analysis Covered in The Report: Market Trends and Analysis, Market Segmentation, Market Breakup by Region, Price Trends, Competitive Landscape, Regulatory Landscape, Strategic Recommendations, Case Study of a Successful Venture |
| Currency | US$ (Data can also be provided in the local currency) |
| Customization Scope | The report can also be customized based on the requirement of the customer |
| Post-Sale Analyst Support | 10-12 Weeks |
| Delivery Format | PDF and Excel through email (We can also provide the editable version of the report in PPT/Word format on special request) |
While we have aimed to create an all-encompassing carbon dioxide production plant project report, we acknowledge that individual stakeholders may have unique demands. Thus, we offer customized report options that cater to your specific requirements. Our consultants are available to discuss your business requirements, and we can tailor the report's scope accordingly. Some of the common customizations that we are frequently requested to make by our clients include:
Capital requirements generally include land acquisition, construction, equipment procurement, installation, pre-operative expenses, and initial working capital. The total amount varies with capacity, technology, and location.
To start a carbon dioxide production business, one needs to conduct a market feasibility study, secure required licenses, arrange funding, select suitable land, procure equipment, recruit skilled labor, and establish a supply chain and distribution network.
Carbon dioxide production requires raw materials such as organic materials (fossil fuels like coal, oil, and natural gas as well as biomass) and calcium carbonate (limestone).
A carbon dioxide factory typically requires CO2 gas recovery units, purification and dehydration systems, liquefaction and refrigeration equipment, storage tanks, compressors, and filling stations. Additional machinery includes heat exchangers, condensers, control panels, safety valves, and cylinders for distribution, supported by laboratory instruments for quality testing and monitoring of gas purity and pressure.
The main steps generally include:
Collection of raw gas or flue gas
Removal of impurities and moisture
Compression and cooling of purified gas
Liquefaction through controlled refrigeration process
Storage in insulated high-pressure tanks
Bottling or filling into cylinders
Quality testing and final distribution
Usually, the timeline can range from 12 to 24 months to start a carbon dioxide production plant, depending on factors like site development, machinery installation, environmental clearances, safety measures, and trial runs.
Challenges may include high capital requirements, securing regulatory approvals, ensuring raw material supply, competition, skilled manpower availability, and managing operational risks.
Typical requirements include business registration, environmental clearances, factory licenses, fire safety certifications, and industry-specific permits. Local/state/national regulations may apply depending on the location.
The top carbon dioxide producers are:
Saudi Aramco
Coal India
CHN Energy
ExxonMobil
Chevron
Profitability depends on several factors including market demand, production efficiency, pricing strategy, raw material cost management, and operational scale. Profit margins usually improve with capacity expansion and increased capacity utilization rates.
Cost components typically include:
Land and Infrastructure
Machinery and Equipment
Building and Civil Construction
Utilities and Installation
Working Capital
Break even in a carbon dioxide production business typically range from 3 to 6 years, depending on scale, regulatory compliance costs, raw material pricing, and market demand. Efficient production and export opportunities can help accelerate returns.
Governments may offer incentives such as capital subsidies, tax exemptions, reduced utility tariffs, export benefits, or interest subsidies to promote manufacturing under various national or regional industrial policies.
Financing can be arranged through term loans, government-backed schemes, private equity, venture capital, equipment leasing, or strategic partnerships. Financial viability assessments help identify optimal funding routes.