Agreement reached to ensure supplies of CO2 to businesses

The carbon dioxide industry has come to an agreement to ensure UK businesses have access to a sustainable supply of CO2 – an essential component of poultry production.

CO2 suppliers have agreed to pay CF Fertilisers a price for the CO2 it produces that will enable it to continue operating while global gas prices remain high/

CF Fertilisers produces around 60% of the UK’s commercial CO2 requirements. In September, the government agreed an exceptional three week deal to pay millions of pounds of public money to CF Fertilisers that allowed the company to continue operating while the industry moved towards this agreement. The poultry industry had warned that without the gas to stun birds and package them, it would quickly grind to a halt.

The deal runs until January 2022.

Business Secretary Kwasi Kwarteng said: “Today’s agreement means that critical industries can have confidence in their supplies of CO2 over the coming months without further taxpayer support.

“The government acted quickly to provide CF Fertilisers with the support it needed to kick-start production, and give us enough breathing space to agree a longer-term, more sustainable solution.”

Environment Secretary George Eustice said: “CO2 is vital for our food and drink sectors. 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.”

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