CO2 industry reaches agreement to keep gas supply flowing
Carbon dioxide (CO2) suppliers have agreed to pay CF Fertilisers a price for the CO2 it produces, ensuring the continuation of the UK’s gas for businesses, the government has confirmed today, Monday, October 11.
CF Fertilisers produces around 60% of the UK’s commercial CO2 requirements. Earlier this month, the company announced it would halt operations at its UK facilities due to rising global gas prices.
In September, the government agreed a three-week arrangement with CF Fertilisers that allowed the company to continue operating while the industry moved towards today’s agreement.
“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,” said Business Secretary Kwasi Kwarteng.
Today’s agreement means that critical industries can have confidence in their supplies of CO2 over the coming months without further taxpayer support.
“I would like to thank all the parties involved in this agreement who have recognised the importance of avoiding supply disruptions and delivering for UK businesses and consumers.”