A fresh deal has been struck to support a North East fertiliser plant that is one of the main sources of CO2 in the UK.
Last year, producers said shortages were looming after fertiliser firm CF Industries, which produces 60% of the UK’s food-grade CO2, said it would stop selling the by-product amid surging costs.
The Government struck a three-week deal in September before a further deal in October to support production at the firm’s Billingham plant on Teesside.
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That agreement ran out at the end of January, but now a new deal has been confirmed that is thought will last until the spring.
In a statement, the department for Business, Energy and Industrial Strategy said: “The carbon dioxide (CO2) industry has come to an agreement to ensure UK businesses have access to a sustainable supply of CO2 – an essential component of the national economy.
“The deal will enable CF Fertilisers’ Billingham plant to continue to operate while global gas prices remain high. It means key sectors, including food processing and nuclear power, are ensured supplies of CO2.”
There had previously been industry concerns that a shortage in CO2 could result in empty shelves at supermarkets, with fresh produce, meat and fizzy drink firms reliant of CO2 for the production and packaging of items.
Tees Valley mayor Ben Houchen welcomed the move.
He said: “I am delighted that an agreement has been reached that will keep CF Fertilisers operational, this will be a huge relief for the hundreds of Teessiders that work for the firm at their Billingham plant.
“Since the company temporarily stopped production is September last year, I’ve been working closely with both CF and the government to reach a long-term sustainable solution and will continue to do so.
“Today’s deal will give certainly to both local workers and those industries that rely on carbon dioxide, especially those involved with food production.”
