Gas crisis: major CO2 supplier restarts UK production

21 September 2021, 14:29 | Updated: 21 September 2021, 18:08

Fertiliser firm CF Industries has struck a deal with the UK government
Fertiliser firm CF Industries has struck a deal with the UK government. Picture: Alamy

By Patrick Grafton-Green

The Government has struck a deal with a major carbon dioxide supplier to restart production at its UK sites.

The deal with fertiliser firm CF Industries comes as part of an effort to ensure availability of the gas for industries including the food sector.

It follows talks between the company and Business Secretary Kwasi Kwarteng.

READ MORE: Energy supplier Green faces administration with hundreds of job losses

READ MORE: Gas prices: What happens if my energy supplier goes bust?

Carbon dioxide is used in food packaging and as a method of stunning animals prior to slaughter but supplies are running low.

Downing Street is yet to confirm details of the deal, with a spokesman saying: "The Business Secretary has been in discussions with CF Industries since the weekend on how we get their plants up and running as soon as possible to secure a continued supply of CO2 to UK businesses."

Prime Minister Boris Johnson said this afternoon that the Government was taking "direct steps" to ensure availability of carbon dioxide.

Meat shortages imminent due to lack of CO2

He said the spikes in gas prices which have led to the disruption of production "are being caused by the world economy waking up after quite a long period of cryogenic paralysis - it's unfreezing everywhere and that is causing supply chain problems".

"Obviously, we're working with the companies to make sure that we can keep the supplies going," he said.

"On the carbon dioxide issue that's particularly important for some industries, we're taking direct steps to make sure that that continues to be available."

Asked by the BBC whether that meant subsidies, he added: "We'll do what's necessary and you'll be hearing a bit more about that later on in the day."

Mr Kwarteng previously said a deal with the company "may come at some cost".

Matrin Lewis issues stark energy warning

Spiralling energy costs have led to the suspension of operations at fertiliser plants - which produce carbon dioxide as a by-product - having a knock-on effect on the food industry.

The gas is injected into the packaging of perishable foods such as meat and salads to inhibit the growth of bacteria.

It typically prolongs the shelf life of products such as beef steak by around five days.

The halt to its production comes as supply chains are already grappling with a shortage of HGV delivery drivers, heaping yet more pressure on UK supermarkets.

Alongside warnings of gaps on supermarket shelves if the issue is not resolved promptly, the result would be widescale food waste as retailers are forced to discard otherwise perfectly good products.

More Latest News

See more More Latest News

The Sentinelese are a pre-Neolithic tribe that rejects contact with the modern world

US tourist arrested for sailing to remote island and leaving a can of Coke for the world's most isolated tribe to try

Full runners and riders confirmed for Saturday's Grand National

Grand National 2025 runners and riders confirmed as full 34-horse line-up revealed

Exclusive
Sophie Bannister and April-Levi Whalley have posted celebratory social media posts after dodging jail for drug smuggling

'Can't wait to enjoy our summer': Drug smuggling best friends celebrate after dodging jail over suitcases full of cannabis

The Trump administration has been ridiculed after imposing tariffs on uninhabited islands

'No one is safe, not even the penguins': Trump administration ridiculed after imposing tariffs on uninhabited islands

Uriah Rennie is 'learning to walk again'.

Premier League's first black referee, Uriah Rennie, 'learning to walk again' after he was left paralysed

Two people died in the explosion in Newcastle

Man, 33, admits manslaughter and drugs charge after devastating house explosion in Newcastle left two dead

j

Glamorous drug smuggling friends found guilty of bringing cannabis to UK - after New York 'shopping trip'

Greenpeace activists scaled a building outside the Foreign Office

Greenpeace activists scale Foreign Office building over signing of ocean treaty

Spain celebrates winning the FIFA Women's World Cup 2023 in Australia

UK poised to host 2035 Women’s World Cup

Lucy Letby

Lawyer for killer nurse Lucy Letby to hand over 'fresh' evidence he hopes will clear her name

World leaders react to US tariffs

'This is not the act of a friend': World leaders react to Trump's 'unwarranted' tariffs

The millionaire businesswoman has called for an urgent safety review by TfL after the emergency Help Point failed in a central London station.

Millionaire businesswoman abandoned on Tube platform by staff after 'traumatising' assault

British couple

British couple found dead in New Zealand named - as police probe possible murder-suicide

Virginia Giuffre said she had been left with 'four days to life' after the crash

Bus driver breaks silence on Virginia Giuffre crash that left her 'with four days to live'

Police at the Biffa recycling plant in Hartlepool

Human remains found at recycling plant in Hartlepool as probe launched

Foreign Secretary David Lammy

David Lammy to urge Nato allies to increase defence spending in bid to make alliance 'stronger, fairer and more lethal'