LONDON, United Kingdom (AFP) – Britain has signed a deal enabling it to restart production of captured carbon dioxide for three weeks, Business Secretary Kwasi Kwarteng said Tuesday, after a shortage of the gas had sparked renewed food supply concerns.
Two UK fertiliser plants accounting for up to 60 percent of Britain’s CO2 supply — which is vital for the food industry — shut last week due to spiking natural gas costs.
But Kwarteng announced late Tuesday that following urgent talks with CF Industries Holdings, which runs the biggest of the two facilities, a deal had been reached for production to be restarted.
An “exceptional short term arrangement with CF Fertilisers will allow the company to immediately restart operations and produce CO2 at its Billingham plant” in the northeast of England, Kwarteng said.
“The government will provide limited financial support for CF Fertilisers’ operating costs for three weeks whilst the CO2 market adapts to global gas prices,” he said in a statement.
“This agreement will ensure the many critical industries that rely on a stable supply of CO2 have the resources they require to avoid disruption.”
The CO2 shortage has triggered warnings of further pressure on food supplies, which are already hit by insufficient numbers of lorry drivers.
CO2 is used in abattoirs to stun animals before they are killed for their meat.
It is also used to carbonate beer and soda, while frozen CO2 or dry ice keeps food fresh during transit.
CF Industries boss Tony Will flew back into Britain on Sunday to hold urgent talks with the government.
On Monday, the government had insisted that Britain would avoid a winter gas supply emergency, as soaring gas prices also threaten domestic energy providers and household bills — and the broader manufacturing sector.
British Steel told AFP on Tuesday that it would maintain normal output but urged intervention both from the government and energy regulator Ofgem.
“Power prices are spiralling out of control and represent one of the biggest challenges facing our business,” said a spokesman.
“We are maintaining production at normal levels but huge extra costs like these cannot simply be absorbed or ignored. The UK government and Ofgem must act now.”
© Agence France-Presse
