London Daily

Focus on the big picture.
Saturday, Jul 18, 2026

Fresh CO2 shortage fears as surging energy costs force factory shutdown

Fresh CO2 shortage fears as surging energy costs force factory shutdown

Ministers were forced to intervene nearly two years ago with financial support for a plant near Middlesbrough after its closure threatened a food supply crisis.
Fresh fears have flared over a shortage of carbon dioxide - critical to the food and drinks industry - after a major supplier said it was halting production in the face of soaring energy costs.

There are renewed worries after CF Fertilisers said it was pausing operations at its remaining UK ammonia plant at Billingham near Middlesbrough, because rocketing gas prices made it "uneconomical".

The development comes as millions of households learned they will see their energy bills rocket as a record 80% price hike was announced, driven by Russia's invasion of Ukraine.

The firm supplies 42% of the UK's CO2, which is a by-product from the production of ammonia.

CO2 plays a key role in the food supply chain, keeping food fresh and adding fizz to beer and soft drinks, as well as being used in the humane slaughter of pigs and chickens.

It has been warned any disruption in supply poses a serious risk to food production and security, and animal welfare.

Ministers were forced to intervene nearly two years ago with financial support for the plant after a shutdown, blamed at the time on a surge in gas prices, triggered a food supply crisis.

The government has said it is "aware" of the latest decision and is examining options to improve the resilience of CO2 production in the UK.

Whitehall assurances over the impact of the stoppage are now being sought by the chair of the Commons Environment, Food and Rural Affairs Committee.

Sir Robert Goodwill, who has written to the environment secretary to express his concerns, said: "Recent reports that CF Fertiliser will be halting production of ammonia are worrying, given the knock-on impacts this decision will have on CO2 production in the UK.

"Any disruption to CO2 supply could have serious effects on food production, national food security, and animal welfare."

Nick Allen, chief executive of the British Meat Processors Association, said the government would "need to step in".

He said: "Whilst we are in a much better position now than we were a year ago, if CF Industries follows through on its threat to close Billingham the British meat industry will have serious concerns.

"Without sufficient CO2 supplies the UK will potentially face an animal welfare issue with a mounting number of pigs and poultry unable to be sent for processing.

"It's for this reason that securing CO2 supplies is of key strategic importance and, following this latest development, we can't see how government can sit on the sidelines and insist that it's for companies to work it out amongst themselves."

Emma McClarkin, chief executive of the British Beer and Pub Association, said the timing of the announcement "couldn't be worse" as she also called for the government to intervene.

"This decision raises serious concerns for the sustainable supply of CO2 to the brewing and pub industry," she said.

"A guaranteed supply is essential for operations across pub and brewing businesses and this announcement comes at a time when they are already facing extreme cost rising that are threatening businesses and people's livelihoods across the country."

CF said: "At current natural gas and carbon prices, CF Fertilisers UK's ammonia production is uneconomical, with marginal costs above £2,000 per tonne and global ammonia prices at about half that level."

A government spokeswoman said: "We are aware that CF Fertilisers has taken the decision to temporarily halt ammonia production at Billingham.

"Since last autumn, the CO2 market's resilience has improved, with additional imports, further production from existing domestic sources and better stockpiles.

"While the government continues to examine options for the market to improve resilience over the longer term, it is essential industry acts in the interests of the public and business to do everything it can to meet demand."

The CBI warned earlier this week that many viable companies face "distress" unless urgent action is taken by the government to get a grip on the energy cost crisis.
Newsletter

Related Articles

0:00
0:00
Close
For 36 Years, He Scammed About 300 Luxury Hotels — Until He Was Caught
England's World Cup Exit Expected to Cost Hospitality and Retail £334 Million
Former ICC Prosecutor Aide Speaks Publicly About Allegations Against Karim Khan
Opposition Raises Questions Over June Heatwave Power Grid Pressures
Mastercard Explores Sale of Majority Stake in UK Payments Operator Vocalink
Boeing Forecasts Global Commercial Aircraft Fleet Will Double by 2045
London GP Surgeries Receive £18 Million to Expand Primary Care Capacity
Health Advisers Recommend Nationwide Meningitis B Vaccination for Teenagers
OECD Warns UK Economy Faces Slower Growth and Weak Productivity
Treasury Places Major Global Cloud Providers Under Direct Financial Oversight
Financial Markets Rally as Shabana Mahmood Emerges as Leading Treasury Candidate
Incoming Government Prepares Thames Water Nationalisation and New North Sea Drilling Approvals
UK Government Plans Deep Cuts to Bilateral Aid for African Nations
United States and Iran Exchange Direct Strikes for Seventh Consecutive Night
Incoming Prime Minister Andy Burnham Confirmed as Labour Leader Ahead of Downing Street Handover
Britain Nationalises British Steel to Protect Scunthorpe Production and Strategic Supply
Andy Burnham Takes Labour Leadership and Prepares to Become Britain’s Seventh Prime Minister in a Decade
Tech Companies Want to Move Computing Off Your Screen and Onto Your Body
White House Teleprompter Operator Earned More Than $100,000 From Bets Linked to the President's Speeches
French Prime Minister Survives No-Confidence Vote After Controversial Budget Cuts
European Commission Opens Excessive Deficit Procedure Against France
French Senate Blocks Key Immigration Reform Measures
French Government Pushes EU Action Against Ultra-Fast Fashion Imports
French Parliament Debates Expanded Autonomy Powers for Corsica
France Reopens Autonomy Talks With New Caledonia After Months of Unrest
Bordeaux Wine Producers Seek Three Hundred Million Euro Aid Package After Export Collapse
French Farmers Block Spain Border Crossings Over Imported Food Competition
Cannes Film Festival Bans Fully Artificial Intelligence-Generated Films From Competition
TotalEnergies Shifts More Than Three Billion Euros of Green Investment From Europe to the United States
LVMH Chief Executive Bernard Arnault Presents Succession Plan for Luxury Empire
Kering Reports Fifteen Percent Revenue Drop as Chinese Luxury Demand Weakens
Sanofi Reports Positive Results From Messenger RNA Respiratory Vaccine Trials
France Places Energy Price Caps Under Review to Protect Households Through Winter
EDF Connects Two New Nuclear Reactors to France’s Electricity Grid
Mistral Secures European Commission Contract for Sovereign Artificial Intelligence Models
Renault Opens Next-Generation Electric Battery Plant in Northern France
Air France Signs Two Billion Euro Sustainable Aviation Fuel Deal to Cut Emissions
Marseille Launches Three Billion Euro Port Expansion to Strengthen Mediterranean Trade Role
French-Owned Ubisoft Announces Global Restructuring With Nearly One Thousand Job Cuts
National Railway Operator Suspends Artificial Intelligence Ticket Pricing System After Consumer Backlash
United Kingdom to Ban Sales of High-Caffeine Energy Drinks to Under-Sixteens
Home Office Designates Iranian and Russian Paramilitary Groups as National Security Threats
National Health Service Launches Housing Plan to Retain London Healthcare Workers
British Heatwave Fuels Wildfires and Emergency Evacuations in Scotland
United Kingdom and Estonia Sign Defence Agreement to Strengthen NATO’s Eastern Flank
United Kingdom Cuts Bilateral Aid to African Nations by More Than Eighty Percent
Bank of England Overhauls Banking Rules to Encourage More Lending to Businesses
United Kingdom and India Free Trade Agreement Enters Into Force, Reshaping Bilateral Economic Ties
Andy Burnham Confirmed as New Labour Leader and Prime Minister-Designate
UK Government Faces Pressure Over Extreme Heat Workplace Rules
×