Food industry raises alarm over CO2 supply as plant halts production

Food and drink industry bodies have sounded alarm over potential carbon dioxide shortages, after one of the UK’s largest suppliers of the gas announced the halt of production due to surging energy costs.

Britain's food and drinks industry on Thursday (25) said the government needed contingency plans to ensure supplies of carbon dioxide after a major producer halted its operations, potentially adding to supply chain problems.

Citing high energy costs, CF Fertilisers UK on Wednesday (24) decided to temporarily halt ammonia production at its Billingham plant in northeast England, which produces CO2 as a byproduct for use in putting the fizz into beer and stunning poultry and pigs before slaughter.

Andrew Opie, director of Food and Sustainability at the British Retail Consortium, said CO2 was essential to the food industry and losing the main domestic source was a concern.

"We have consistently pushed government to ensure a stable supply of CO2 and trust it has contingency plans in place should we lose this supply, but we do not anticipate any immediate problems for retailers," he said.

Nick Allen, the chief executive of the British Meat Processors Association, said the closure of the Cheshire plant made UK firms even more vulnerable to domestic supply shocks, and had sent them searching for overseas sources. However, producers in countries including Italy and Germany have also cut production, forcing firms to compete for more limited supplies across Europe.

“Whilst we are in a much better position now than we were a year ago, if CF Industries follows through on its threat to close Billingham, the British meat industry will have serious concerns,” Allen said. “Without sufficient CO₂ supplies, the UK will potentially face an animal welfare issue with a mounting number of pigs and poultry unable to be sent for processing.”

The British Beer and Pub Association also raised concern, saying that a sustainable plan is needed for the supply of CO₂

before businesses are forced to close their doors.

The US firm CF Industries said soaring natural gas prices meant it would have to “temporarily halt” activity at its remaining UK ammonia plant, which creates CO₂ as a byproduct.

Meanwhile, the government issued a statement on Thursday (25) urging the industry to do more to meet demand.

“Since last autumn, the CO₂ market’s resilience has improved, with additional imports, further production from existing domestic sources and better stockpiles,” The Guardian quoted a governement spokesperson as saying.

The plant in Billingham, Teesside, accounts for nearly a third of the UK’s supplies of the gas, which is essential to industries ranging from beer to meat to fizzy drinks and is also used in hospitals and as a coolant in nuclear power plants.