CO2 industry strikes agreement to ensure continuation of supplies to UK businesses
The CO2 industry has come to an agreement to ensure UK businesses have access to a sustainable supply of CO2.
The move will ensure major supplier CF Fertilisers can remain operational while global gas prices remain high.
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, drawing on support from industry and delivering value for money for the taxpayer.
This price for CO2 reflects the importance of this material to everything from the nuclear industry to hospitals to the food and beverage industry. CF Fertilisers produces around 60 per cent of the UK’s commercial CO2 requirements.
In September, the government agreed an exceptional 3 week arrangement with CF Fertilisers that allowed the company to continue operating while the industry moved towards this agreement.
Business Secretary, Kwasi Kwarteng MP, 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.
“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.”
Environment Secretary, George Eustice MP, commented: “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.”
Last week, Kwasi Kwarteng temporarily exempted parts of the CO2 industry from competition law to facilitate this agreement and provide further security of CO2 supplies to UK businesses.
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