Government fights off calls for new CO2 supply deal despite industry pressure
Emergency supply deals arranged last year between Downing Street and the UK’s key CO2 producer came to an end yesterday, despite industry calls for a new arrangement between both parties.
Last week, the Food and Drink Federation (FDF) teamed up with other trade bodies to send a joint letter to business secretary Kwasi Kwarteng and Defra secretary George Eustice, calling on the government to re-enter negotations with the CO2 industry.
CO2 is a key component in the packaging and production of fresh produce, meat and fizzy drinks, and the lack of a new deal has raised concerns across the industry about potential product shortages on supermarket shelves.
CF Fertilisers halted CO2 operations at major plants last September amid soaring wholesale gas prices, before reaching successive last ditch deals with the government last winter to ensure supplies could be sent to UK industries over the winter.
The company is responsible for 60 per cent of the UK’s CO2 production.
Despite pressure to enter a new deal, the government has highlighted that further CO2 supplies have since come online, such as from Ensus at Wilton on Teesside, alongside increased imports from overseas.
A spokesperson for the department of business, energy and industrial strategy said: “It is for the CO2 industry to ensure supplies to UK businesses.”