New CO2 deal struck by industry

New CO2 deal struck by industry

The government has confirmed that the carbon dioxide (CO2) industry has come to an agreement to ensure UK businesses have access to a sustainable supply of CO2.

In September 2021, the government provided limited financial support for CF Fertilisers’ operating costs for three weeks after CO2 shortages were reported by businesses nationwide. Industry then came to an agreement in October 2021 without taxpayer support to ensure CF Fertilisers on Teesside could continue to operate for three months.

Late last month, the Food and Drink Federation voiced its concern that the end of the temporary agreement would spark further CO2 shortages.

In a statement, the government said that the new deal will enable CF Fertilisers’ Billingham plant to continue to operate while global gas prices remain high. This means sectors, including food processing and manufacturing, will continue to receive supplies of CO2.

The government said that it welcomed the industry’s agreement and that it was made “in the best interests of businesses.” In the longer term, the government said that it would like to see the market take measures to improve resilience, and that it was engaging on ways this could happen. No details of the agreement have yet been released.

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