The surging cost of carbon dioxide could add £1.7 billion to the cost of British groceries, according to new analysis. Research by the Energy and Climate Intelligence Unit (ECIU) suggests that the UK’s food and drink sector could end up footing the mammoth extra bill for liquid CO2 if gas prices remain high.
UK commercial energy prices have rocketed over the past year, accelerated by the Russian invasion of Ukraine. The move has had heavy ramifications for industries reliant on carbon dioxide, with production also disrupted due to the rampant inflation.
The price of a tonne of liquid CO2 is up to 3000% higher than it was a year ago, currently as much as £3,000 per tonne, compared to just £100 per tonne one year ago, the ECIU said. Soaring prices resulted in CF Fertilisers proposing to halt production at its ammonia site, where CO2 is created as a by-product, in August.
