Carbon dioxide: Overview
Fertiliser, fizzy drinks, dry ice and oil fields
What this tab covers What the chemical is, how big its market is, what it is used for (with shares, volumes, why it wins and what could replace it), and its chain from raw material to end user. Ends with three things to remember.Commercial carbon dioxide is captured from concentrated by-product streams, mainly ammonia and hydrogen plants, bioethanol fermentation and natural gas processing, then purified and liquefied. About 230 Mt a year is used (IEA, 2019, indicative): most of it is captive in urea plants and US enhanced oil recovery, and the merchant market for food, drinks and industry is over 20 Mt (gasworld). Because supply depends on fertiliser plants, high gas prices can cut it overnight, as the UK found in 2021. CO2 use is also the starting point for carbon capture, storage and e-fuels.
Volume about 230 Mt a year used, of which over 20 Mt merchant Market value not published; merchant market indicative a few billion dollars (basis: over 20 Mt at roughly $100-200/t delivered) Growth merchant volumes grow slowly in developed markets and faster in developing ones; India merchant demand about 3,565 t a day in 2024 IEA Putting CO2 to Use (2019, indicative); gasworld (2016 merchant market; 2025 India report)Key uses
| Use | Share | Annual volume | Why this commodity | Alternatives |
|---|---|---|---|---|
| Urea manufacture (captive) | 57% | about 130 Mt (IEA 2019); about 147 Mt by stoichiometry on 2024 urea outputbasis | Urea is ammonia plus CO2. The ammonia plant's reformer makes a pure CO2 stream, so urea plants sit beside ammonia plants and use it on site. The CO2 is released again when urea is spread on fields. IEA (2019, indicative); IFA via DTN (2025); stoichiometry | Ammonium nitrate or UAN, which need no CO2 |
| Enhanced oil recovery (mainly US) | 33% | about 70-80 Mtbasis | CO2 injected into older oil fields mixes with oil and pushes it to producing wells. Most comes from natural CO2 domes in Colorado and New Mexico, piped to the Permian Basin; some from gas processing and ammonia plants. IEA Putting CO2 to Use (2019, indicative) | Water flooding Nitrogen injection |
| Food and beverages (carbonation, chilling, packaging, dry ice) | n/a | largest part of the over 20 Mt merchant marketbasis | Carbonation needs food-grade CO2 of 99.9% purity. Liquid CO2 and dry ice chill and freeze meat and poultry, and CO2 is used to stun pigs and poultry before slaughter. gasworld (2016) | Nitrogen for freezing and packaging |
| Industrial: welding blends, water treatment (pH control), fire suppression, greenhouses, methanol, sodium bicarbonate | n/a | rest of merchant and captive usebasis | CO2 is a cheap, safe acid gas for neutralising alkaline water and a growth booster in greenhouses. Chemical uses include methanol and soda ash process loops. gasworld (2016) | Sulphuric acid for pH control Argon blends in welding |
From raw material to user
- Source plant Ammonia and hydrogen plants, bioethanol fermenters and gas processing give CO2 streams of 95-99% purity. Billingham in the UK made 750 t a day (2021).
- Capture and compression Concentrated streams need only compression and drying; dilute flue gas needs amine capture.
- Purification Activated carbon and distillation remove sulphur, benzene and other impurities to food grade (99.9%).
- Liquefaction and storage CO2 is stored as a liquid at about -20 C and 20 bar in insulated tanks.
- Distribution Road tankers to bottlers, meat plants and hospitals; cylinders and dry ice for small users. India's merchant demand was about 3,565 t a day (2024).
- Pipeline to EOR or storage US CO2 pipelines carry tens of Mt a year to oil fields; new CCS hubs pipe CO2 to saline aquifers.
Made from (commodity table)
Gas Natural gasThree things to know
- About 57% of all CO2 used goes into urea, which releases it again in the field (IEA 2019, indicative).
- In 2021 the shutdown of CF Industries' UK plants cut 60% of the UK's food-grade CO2 until the government paid to restart Billingham.
- The merchant CO2 market is only over 20 Mt a year, tiny next to the 37 Gt of fossil CO2 emitted (gasworld; Global Carbon Project 2024, indicative).