Skip to content
Search
AI Powered
Latest Stories

EXPLAINED: What caused panic about CO2 supplies

EXPLAINED: What caused panic about CO2 supplies
The CF Fertilisers site on Teesside on September 21, 2021 in Billingham, England. (Photo by Ian Forsyth/Getty Images)
Getty Images

Britain struck a deal with a major producer of fertiliser and carbon dioxide (CO2) on Tuesday to restart two plants which had halted operations due to soaring prices for natural gas.

The closures had led to fears that the production of a wide range of food and drinks could be shut down within days.


Why Is Carbon Dioxide Important?

The food and drink industry is the largest user of carbon dioxide with the gas used in a wide range of beverages including beer and soft drinks.

In the meat sector, it's also used to stun animals prior to slaughter while bakers often use it in a packaging process which prolongs the life of products such as crumpets and cakes.

The gas has many other applications outside of food and drink including in medicine where it is used during a wide range of procedures from non-invasive surgery to the removal of warts.

The energy sector is also an important consumer with the nuclear industry, for example, using it as a coolant.

How It Is Produced?

Carbon dioxide is a by-product in the production of some fertilisers and biofuels.

In Britain, the largest sources include CF Fertilisers UK's plant in Billingham in northeast England and the company's Ince plant in north-west England.

How It Is Traded?

Fertiliser producers sell carbon dioxide to industrial gas companies such as Linde and Air Liquide who purify it to the required standard before selling it to consumers.

Carbon dioxide is sold through a mixture of contracts and spot sales.

Why Is There A Shortage?

CF Fertilisers halted production at its two British fertiliser plants last week due to soaring prices of natural gas, a key input in the production process.

This effectively removed a large chunk of supply from the market and there have been reports that carbon dioxide suppliers were not scheduling beyond 24 hours in advance.

Many consumers only have sufficient reserves of the gas to last a few days and this created fears that production of a wide range of products could be quickly brought to a halt.

More for you

Home energy smartmeter
Photo: iStock

Inflation jumps in October on higher energy bills

Britain's annual inflation rate jumped more than expected in October to back above the Bank of England's target as households and businesses faced higher energy bills, official data showed Wednesday.

The Consumer Prices Index reached 2.3 per cent from a three-year low of 1.7 percent in the 12 months to September, the Office for National Statistics said in a statement.

Keep ReadingShow less
Nestle

Nestle logos are pictured in the supermarket of Nestle headquarters in Vevey, Switzerland, February 13, 2020

REUTERS/Pierre Albouy/File Photo

Nestle to step up marketing investment; Waters and beverages to become standalone business

Nestle on Tuesday said it will increase investment in advertising and marketing to 9 per cent of sales by the end of 2025. The company also announced plans to make its waters and premium beverages activities a global standalone business from New Year.

Unveiling a plan to fuel and accelerate growth at a Capital Markets Day for investors and analysts, the Swiss group also said it aims cost savings of at least CHF 2.5 billion (£2.25bn) above existing initiatives by end 2027 to fund increased investments.

Keep ReadingShow less
Deposit Return Scheme

Retailers express concern over Welsh government’s decision to press on with its own DRS

A single UK-wide scheme deposit return scheme (DRS) would be far more successful, efficient and effective, retailer body the Federation of Independent Retailers (the Fed) has stated, expressing surprise and some concerns over Welsh government’s decision to press ahead with its own deposit return scheme for bottles and cans and not to join a UK-wide DRS.

The Fed’s National President Mo Razzaq has further warned that this decision by Wales - coupled with its intention to include glass in its scheme - would cause unnecessary confusion. He commented: “While we applaud Wales’s desire to make its deposit return scheme a success, we would prefer to see one single scheme for the UK.

Keep ReadingShow less
Retail Insolvency

Retail insolvencies flat though 'wave of distress' expected

Retail insolvencies remained flat in the lead up to the Budget, shows a recent report, though experts feel that a wave of distress is expected following the Chancellor’s increase in employers’ National Insurance contributions and National Minimum Wage.

Today’s company insolvency statistics show retail trade insolvencies fell slightly from 2,101 in the 12 months to September 2023, to 2,089 in the 12 months to September 2024, and were flat month-on-month (137 in August 2024 to 138 in September 2024).

Keep ReadingShow less
Raj Patel

Raj Patel

National Lottery retailers help raise landmark £50bn for good causes

Today, on The National Lottery’s 30th birthday, operator Allwyn is announcing that, through selling tickets, National Lottery retailers have helped players raise a landmark £50 billion for Good Causes since 1994 – funding an incredible 700,000 individual projects across the UK.

Allwyn is also announcing that National Lottery retailers have now earned over £8 billion in sales commission since the first draw on Saturday 19 November 1994.

Keep ReadingShow less