UK food and drinks manufacturers will have access to a sustainable supply of CO2 after a deal was struck with the industry.
Suppliers have agreed to pay CF Fertilisers, which produces around 60% of the UK’s commercial CO2 requirements, a price for the CO2 it produces that will enable it to continue operating while global gas prices remain high.
In September, the government agreed an exceptional three-week arrangement with CF Fertilisers that allowed the company to continue operating while the industry moved towards this agreement.
The deal runs until January 2022 and means that key sectors are ensured supplies of CO2.
Environment Secretary, George Eustice, said: “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.
Business Secretary, Kwasi Kwarteng, added: “Today’s agreement means that critical industries can have confidence in their supplies of CO2 over the coming months without further taxpayer support.”
In addition, CO2 producer Ensus reopened its Wilton plant in Wiltshire last week following temporary closure for planned maintenance, further securing supplies. The Wilton plant can produce up to 40% of the UK’s CO2 requirements.