UK beer industry worried about CO2 shortage!

Fears of an imminent shortage of carbon dioxide were averted by a new deal to keep carbon dioxide in supply on Feb. 1, but beer industry experts remain concerned about the lack of a long-term solution.

Last year, 60% of food-grade carbon dioxide in the UK came from fertiliser company CF Industries, which said it would stop selling the by-product due to soaring costs, and food and drink producers say a shortage of carbon dioxide is looming.
In October last year, carbon dioxide users agreed to a three-month deal to keep a key production site operating. Previously, the base’s owner said high energy prices made it too expensive to operate.
A three-month agreement that allows the company to continue operating expires on January 31. But the UK government says the main user of carbon dioxide has now reached a new agreement with CF Industries.
Full details of the agreement have not been disclosed, but reports say the new agreement will do nothing for taxpayers and will continue through the spring.

James Calder, chief executive of the Independent Brewers Association of Great Britain (SIBA), said on the renewal of the agreement: “The government has helped the CO2 industry reach an agreement to ensure the continuity of CO2 supply, which is vital to the production of many small breweries. During last year’s supply shortages, small independent breweries found themselves at the bottom of the supply queue, and many had to stop brewing until CO2 supplies returned. It remains to be seen how supply terms and prices will change as costs rise across the board, This will have a major impact on struggling small businesses. In addition, we will urge the government to support small breweries looking to improve efficiency and reduce their CO2 reliance, with government funding to invest in infrastructure such as recycling CO2 inside the brewery.”
Despite the new agreement, the beer industry remains concerned about the lack of a long-term solution and the secrecy surrounding the new agreement.
“In the long term, the government wants to see the market take steps to increase resilience, and we are working towards that,” it said in a government statement issued on Feb. 1, without giving further details.
Questions about the price agreed in the deal, the impact on breweries and concerns over whether total supply will remain the same, as well as animal welfare priorities, are all up for grabs.
James Calder, chief executive of the British Beer and Pub Association, said: “While the agreement between the beer industry and supplier CF Industries is encouraged, there is an urgent need to further understand the nature of the agreement in order to understand the impact on our industry. impact, and the long-term sustainability of CO2 supply to the UK beverage industry”.
She added: “Our industry is still suffering from a catastrophic winter and is facing rising cost pressures on all fronts. A swift resolution to CO2 supply is critical to ensuring a strong and sustainable recovery for the beer and pub industry. ”
It is reported that the British beer industry group and the Department of Environment, Food and Rural Affairs plan to meet in due course to discuss improving the resilience of carbon dioxide supply. No further news yet.