The government has finalised a deal with the carbon dioxide (CO2) industry after the rising gas prices forced CF Fertilisers who are a major producer to shut down two plants in the UK last month.
When the two CO2 plants were forced to close last month it choked off supplies which is used for many industry sectors such as stunning animals for slaughter and extending food shelf life.
The Environment Secretary George Eustice said that the government propped up the firm for a three week period which is expected to cost “possibly tens of millions of pounds.”
The Business Secretary Kwasi Kwarteng said a “more sustainable solution” has now been found, meaning anyone who buys CO2 from CF Fertilisers will only pay a set price.
Industry has come to an agreement to guarantee the supply of CO2 to business – without further taxpayer support
— Kwasi Kwarteng (@KwasiKwarteng) October 11, 2021
This will enable businesses to operate under the deal until January 2022, as global gas prices are sky rocketing.
The Department for Business, Energy and Industrial Strategy (BEIS) said this reflected “the vital importance of this material to everything from our nuclear industry to hospitals to the food and beverage industry.”
The Business Secretary said, “Today’s agreement means that critical industries can have confidence in their supplies of CO2 over the coming months without further taxpayer support.
“The government acted quickly to provide CF Fertilisers with the support it needed to kick-start production, and give us enough breathing space to agree a longer-term, more sustainable solution.
“I would like to thank all the parties involved in this agreement who have recognised the importance of avoiding supply disruptions and delivering for UK businesses and consumers.”
Eustice added, “CO2 is vital for our food and drink sectors.
“The government has taken decisive action in these exceptional circumstances to allow a deal to be reached which will continue the supply of CO2 to businesses, including thousands of food and drink businesses up and down the country.”