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Food & drink

UK industry signs new deal on CO2 supplies 

The agreement with CF Industries ensures UK businesses have access to a sustainable supply of CO2, the government said

Britain's industry has entered into a new agreement with carbon dioxide producer CF Industries that will ensure access to a sustainable supply of carbon dioxide (CO2) for UK businesses.

The deal will enable CF Fertilisers’ Billingham plant in Teesside to continue to operate while global gas prices remain high and means key sectors such as food processing and nuclear power are ensured supplies of CO2, the Department for Business, Energy and Industrial Strategy said in a statement.

CO2 is an essential component in a number of industries. For example, the meat production sector uses the gas to stun animals for slaughter and preserve the shelf life of meat.

Today's agreement comes after CF Industries closed its two plants in Teesside and Cheshire in September last year following a surge in gas prices that meant production was unprofitable.

It then secured short-term funding from the UK government to help it re-open the plants, which was followed by a three-month deal with industry that ends tonight.

The government said it "would like to see the market take measures to improve resilience" in the longer term, and that it is engaging on ways this could happen.

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