London Daily

Focus on the big picture.
Wednesday, Jul 23, 2025

CF Industries: Government to meet CO2 firm's costs to start plant

CF Industries: Government to meet CO2 firm's costs to start plant

The government will meet the operating costs of a US-owned fertiliser plant so it can restart production of carbon dioxide (CO2) in the UK after warnings of food shortages.

The deal will allow CF Industries, which supplies most of the CO2 used in food production, to restart its factory in Billingham, Stockton-on-Tees.

It had halted two of its fertiliser factories due to soaring gas prices.

The BBC understands the deal could cost tens of millions of pounds.

It is also expected the plant will need up to three days to start CO2 production, and only one of the company's factories will restart - its Cheshire plant remains closed.

In a statement, the government said it would provide support for CF Fertilisers' operating costs for three weeks "whilst the CO2 market adapts to global prices".

Business Secretary Kwasi Kwarteng said the "exceptional short term arrangement" would ensure industries that rely on a stable supply of CO2 "have the resources they require to avoid disruption".

CO2 is widely used in the food industry in brewing and in packaging for meat and salads to prolong shelf life.

The business secretary previously ruled out nationalising the company, although providing financial support is still seen as an unusual move.

The deal comes after one food industry group warned that consumers could start noticing gaps on supermarket shelves within days if there was no intervention in its supply.

Carbon dioxide, produced at the two plants as a by-product, is used when slaughtering pigs and chickens to stun them.

It is also used in beer and fizzy drinks, as well as in the vacuum-packing process.


Ian Wright, the chief executive of the Food and Drink Federation, told the BBC earlier on Tuesday that consumers could start noticing shortages in poultry, pork and bakery products within days.

"We probably have about 10 days before this gets to the point where consumers, shoppers and diners notice that those products are not available," he said.

"It is a real crisis," he added, saying that poultry and pork production would be seriously affected by the end of this week without intervention.

He also called on the government to support other fertiliser producers and help food producers to look for alternatives to CO2.

The BBC understands that the deal with CF Industries has been drafted so that other companies who stop production due to high commodity prices will not be able to ask the government for similar help.

Norwegian firm Yara has also cut production at a number of European factories, including one in Hull.

Business Secretary Kwasi Kwarteng had said previously that "time is of the essence" in organising the deal with CF Industries, acknowledging that "it may come at some cost".

Knock-on effects


A spokesman for the British Meat Processors Association said a "key question" for the industry was "when will the plants be back on stream, as every day of disruption has knock-on effects for the meat processing industry".

Andrew Opie, director of food and sustainability at the British Retail Consortium, also welcomed the deal but said it was "vital" that production "is restarted as soon as possible, and [CO2 is] distributed quickly to food manufacturers in need of it".

The president of the National Farmers' Union, Minette Batters, added: "It's important this restart is meaningful and sustained.

"Users of carbon dioxide were given little to no warning that supplies were going to be cut off - an indication of market failure in a sector supporting our critical national infrastructure."

On Tuesday, Prime Minister Boris Johnson urged people not to worry about putting food on the table this winter, amid rising energy and food bills and a cut to universal credit.

Wholesale prices for gas have surged 250% since January, with a 70% rise since August alone, leading to calls for support from the industry, and the collapse of some smaller energy firms.

The resulting shortage of carbon dioxide saw warnings about the potential impact on food suppliers, as well as the NHS and the nuclear industry, where it is used as a coolant.

Mr Opie added that the government should also take action on other issues affecting food retailers in recent weeks, such as the shortage of HGV drivers, which has been exacerbated by the pandemic and many drivers returning to the European Union after Brexit.


The prime minister says he does “not believe people will be short of food” amid reports of some empty supermarket shelves.


Newsletter

Related Articles

0:00
0:00
Close
US Treasury Secretary Calls for Institutional Review of Federal Reserve Amid AI‑Driven Growth Expectations
UK Government Considers Dropping Demand for Apple Encryption Backdoor
Severe Flooding in South Korea Claims Lives Amid Ongoing Rescue Operations
Japanese Man Discovers Family Connection Through DNA Testing After Decades of Separation
Russia Signals Openness to Ukraine Peace Talks Amid Escalating Drone Warfare
Switzerland Implements Ban on Mammography Screening
Japanese Prime Minister Vows to Stay After Coalition Loses Upper House Majority
Pogacar Extends Dominance with Stage Fifteen Triumph at Tour de France
CEO Resigns Amid Controversy Over Relationship with HR Executive
Man Dies After Being Pulled Into MRI Machine Due to Metal Chain in New York Clinic
NVIDIA Achieves $4 Trillion Valuation Amid AI Demand
US Revokes Visas of Brazilian Corrupted Judges Amid Fake Bolsonaro Investigation
U.S. Congress Approves Rescissions Act Cutting Federal Funding for NPR and PBS
North Korea Restricts Foreign Tourist Access to New Seaside Resort
Brazil's Supreme Court Imposes Radical Restrictions on Former President Bolsonaro
Centrist Criticism of von der Leyen Resurfaces as she Survives EU Confidence Vote
Judge Criticizes DOJ Over Secrecy in Dropping Charges Against Gang Leader
Apple Closes $16.5 Billion Tax Dispute With Ireland
Von der Leyen Faces Setback Over €2 Trillion EU Budget Proposal
UK and Germany Collaborate on Global Military Equipment Sales
Trump Plans Over 10% Tariffs on African and Caribbean Nations
Flying Taxi CEO Reclaims Billionaire Status After Stock Surge
Epstein Files Deepen Republican Party Divide
Zuckerberg Faces $8 Billion Privacy Lawsuit From Meta Shareholders
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
SpaceX Nears $400 Billion Valuation With New Share Sale
Microsoft, US Lab to Use AI for Faster Nuclear Plant Licensing
Trump Walks Back Talk of Firing Fed Chair Jerome Powell
Zelensky Reshuffles Cabinet to Win Support at Home and in Washington
"Can You Hit Moscow?" Trump Asked Zelensky To Make Putin "Feel The Pain"
Irish Tech Worker Detained 100 days by US Authorities for Overstaying Visa
Dimon Warns on Fed Independence as Trump Administration Eyes Powell’s Succession
Church of England Removes 1991 Sexuality Guidelines from Clergy Selection
Superman Franchise Achieves Success with Latest Release
Hungary's Viktor Orban Rejects Agreements on Illegal Migration
Jeff Bezos Considers Purchasing Condé Nast as a Wedding Gift
Ghislaine Maxwell Says She’s Ready to Testify Before Congress on Epstein’s Criminal Empire
Bal des Pompiers: A Celebration of Community and Firefighter Culture in France
FBI Chief Kash Patel Denies Resignation Speculations Amid Epstein List Controversy
Air India Pilot’s Mental Health Records Under Scrutiny
Google Secures Windsurf AI Coding Team in $2.4 Billion Licence Deal
Jamie Dimon Warns Europe Is Losing Global Competitiveness and Flags Market Complacency
South African Police Minister Suspended Amid Organised Crime Allegations
Nvidia CEO Claims Chinese Military Reluctance to Use US AI Technology
Hong Kong Advances Digital Asset Strategy to Address Economic Challenges
Australia Rules Out Pre‑commitment of Troops, Reinforces Defence Posture Amid US‑China Tensions
Martha Wells Says Humanity Still Far from True Artificial Intelligence
Nvidia Becomes World’s First Four‑Trillion‑Dollar Company Amid AI Boom
U.S. Resumes Deportations to Third Countries After Supreme Court Ruling
Excavation Begins at Site of Mass Grave for Children at Former Irish Institution
×