Government strike deal to restart C02 production

CF Fertilisers are going to resume production

Author: Alex UsherPublished 21st Sep 2021
Last updated 24th May 2022

The Government has struck a deal with CF Fertilisers, a major supplier of carbon dioxide in the UK, to restart production.

Due to gas prices rising, CF Fertilisers, who produce CO2 as a by-product, stopped production in Teeside and Cheshire due to 'high natural gas prices' making their business 'inoperable'.

Despite the plants only closing a few days ago, the impact of this C02 shortage has been widespread, affecting everything from fizzy drinks to meat production, and even coronavirus vaccine storage.

Now the government's reached an agreement with CF Industries in Ellesmere Port and Stockton, which produces 60% of the UKs CO2, to resume operations.

Read More: Gas crisis could see a UK food shortage

The price of wholesale gas has surged by 250% since the beginning of the year and added 70% just since August, according to figures from Oil & Gas UK.

The rising prices has caused five energy suppliers to go out of business in recent weeks, with many small energy suppliers predicted to go under before the end of the year.

Last week British Gas agreed to take on an extra 350,000 domestic customers from collapsed energy firm People's Energy. The company went bust last week, leading to regulator Ofgem finding another supplier to take on the firm's customers.

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