The Department of Business, Energy and Industrial strategy has revealed that a new deal has been agreed with CF Fertilisers’ Billingham plant to ensure the production of CO2 – a by-product of fertiliser production. The new deal is thought to run until the spring.
Fertiliser production remains the main source of CO2 in the UK and CF Fertiliser previously supplied 60% of the food-grade CO2 in the UK. It had closed its factories last year due to a reduction in demand and soaring gas prices, which made the production of fertilser uneconomical. As the CO2 shortages took hold in September, the UK Government agreed to pay CF Fertiliser to keep the Billingham plant open in order to access the CO2 and it is this arrangement that is believed to have been extended.
The British Beer and Pub Association said: ‘We are encouraged by the agreement made between suppliers and CF industries, however we urgently need further details on the nature of the arrangement in order to understand the impact on our sector and the longer term sustainability of CO2 supply for the UK drinks sector.
‘Our sector is still reeling from the impact of a devastating winter and face rising cost pressures from all angles.
‘A swift resolution to the CO2 supply issue is crucial in ensuring a strong and sustainable recovery for the beer and pub sector.’