A fresh CO2 crisis has been averted after a three-month deal was struck today to ensure supplies of the vital gas keep flowing.
Major CO2 users have reached a renewed agreement with US-owned CF Industries, a key carbon dioxide producer in the UK, which has a plant in County Durham.
Fears had been raised over the possibility of food shortages and supply chain chaos as the previous deal expired on Monday (31 January).
CF Industries produces around 60% of the UK’s commercial CO2 requirements, a gas which is used in the slaughter process, packaging, and chilling stages of meat production.
In September 2021, the government had provided financial support for the firm's operating costs for three weeks.
At the time, CF Industries said that high natural gas prices had made production at its Billingham plant unviable.
Industry then came to an agreement in October without taxpayer support, to ensure CF Fertilisers could continue to operate for three months.
This deal, which ended on Monday, has been renewed today, enabling CF Fertilisers’ Billingham plant to continue to operate.
It means key sectors, including food processing and nuclear power, are ensured supplies of CO2 for a further three months.
However, industry concern still remains amid calls for a longer-term solution to build stronger resilience in the UK's supply chains.
Responding to today's development, the Department for Business said it would like to see the market "take measures to improve resilience."
"The government welcomes industry’s agreement which is in the best interests of businesses," a department spokesperson said.
