London Daily

Focus on the big picture.
Tuesday, Nov 03, 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
Automotive Industry Data Reveals Continued Acceleration in Battery Electric Vehicle Registrations Across British Dealerships
High Court of England and Wales Rules on Landmark Legal Challenge Regarding Local Government Housing Mandates
Department for Energy Security and Net Zero Approves Expanded Offshore Wind Infrastructure Along Scottish Coastline
Competition and Markets Authority Launches Broad Investigation Into Artificial Intelligence Infrastructure and Cloud Partnerships
United Kingdom and European Union Launch High-Level Preparations for Bilateral Defense and Security Summit in Brussels
National Health Service England Unveils Emergency Workforce Reforms to Alleviate Winter Accident and Emergency Pressures
Chancellor Rachel Reeves Finalizes Autumn Budget Adjustments to Meet Fiscal Rules and Fund Public Services
Bank of England Prepares for Interest Rate Decision Amid Rising Bond Yields and Inflationary Pressures
House of Lords Begins Detailed Legislative Scrutiny of Representation of the People Bill and Cyber Security Laws
Metropolitan Police Detain More Than Three Hundred Individuals Following Large-Scale Demonstration Outside London Embassy
Home Office Prepares Stricter Residency Rules Requiring Vulnerable Migrants to Wait Decade for Settlement Rights
Professional Mental Health Bodies Demand Statutory Regulation for Counsellors and Psychotherapists
National Grid Confirms Construction of Britain's Largest Electrical Substation to Power Teesside Data Centre
Prime Minister Keir Starmer Travels to Samoa for Commonwealth Summit Amid Debates on Economic Cooperation and Reparations
Home Office Implements Enhanced Digital Border Controls and Visa Processing Systems at Major Airports
Office for National Statistics Reports Stable Employment Participation Rates Across Regional Labor Markets
Department for Business and Trade Announces Strategic Partnership to Secure Critical Mineral Supply Chains
Scottish Government Unveils Regional Economic Development Strategy to Boost Advanced Manufacturing in Glasgow and Dundee
Treasury Officials Review Taxation Frameworks and Capital Gains Rules Ahead of Autumn Budget Disclosures
National Health Service Leaders Warn of Winter Capacity Pressures Across Acute Care Facilities
Bank of England Prepares for Key Interest Rate Decision Amid Sticky Inflation and Fiscal Policy Pressures
Home Office Expands Border Security Operations and Intelligence Sharing With European Partners
Office for National Statistics Reports Modest Retail Sales Growth Ahead of Crucial Christmas Trading Season
Welsh Government Unveils Strategic Plan to Boost Regional Technology Innovation and Digital Skills Training
Department for Environment Food and Rural Affairs Implements New Agricultural Subsidies Framework for English Farmers
Scottish First Minister John Swinney Announces Major Regional Infrastructure and Green Energy Investment Strategy
National Health Service Leaders Warn of Severe Winter Pressures and Mounting Accident and Emergency Backlogs
Bank of England Monetary Policy Committee Signals Cautious Interest Rate Path Amid Persistent Services Inflation
Chancellor of the Exchequer Rachel Reeves Finalizes Autumn Budget Framework Aiming to Close Public Sector Fiscal Gap
Department for Science, Innovation and Technology Prepares Enhanced Artificial Intelligence Safety and Cyber Defense Frameworks
United Kingdom Government Expands International Sanctions Framework Against Russian Shadow Fleet and Financial Enablers
Institute of Directors Reports Sharp Post-Budget Drop in Business Confidence Despite Long-Term Investment Intention Shifts
Chancellor John Healey Defends Sweeping Fiscal Adjustments and Household Support Packages Following Autumn Budget
Parliamentary Petitions Committee Schedules Major Legislative Debates on Special Educational Needs and Non-Stun Meat Labelling
Regional Devolution and Good Growth Fund Frameworks Reshape Local Government Funding Across English Regions
Loughborough University Economic Analysts Highlight Substantial Uncertainty Surrounding Public Sector Efficiency Savings
British Legal Sector Drives Sixty Billion Pounds in Annual Economic Output While Employing Over Half a Million Professionals
Law Society Welcomes New Better Regulation Executive While Pressing for Long-Term Legal Aid Funding Reform
Metropolitan Police and Security Services Heighten Operations Across London Ahead of Large-Scale Public Demonstrations
Bank of England Economists Scrutinize Corporate Tax Adjustments and Public Sector Borrowing Pressures
Chancellor John Healey Defends Autumn Budget Tax and Spending Allocations Following Intense Parliamentary Scrutiny
Department for Environment, Food and Rural Affairs Implements Strict Water Quality Monitoring Rules Following Severe Rainfall and Flooding
Welsh Government Unveils Comprehensive Regional Housing Strategy to Address Rural Affordability and Homelessness Pressures in Cardiff
Office for National Statistics Reports Slowing Consumer Price Inflation and Steady Retail Performance Across United Kingdom Markets
Northern Ireland First Minister Michelle O'Neill and Deputy First Minister Emma Little-Pengelly Advance Cross-Border Infrastructure Agreement in Belfast
Competition and Markets Authority Launches Formal Investigation Into Artificial Intelligence Partnerships Involving Major Technology Corporations
Scottish First Minister John Swinney Secures Cross-Party Support for Devolved Budget Framework and Renewable Energy Expansion
High Court Rules in Favor of Environmental Campaigners Over Department for Energy Security and Net Zero Licensing Procedures
National Health Service England Announces Major Digital Modernization and Artificial Intelligence Diagnostic Rollout Across Regional Trusts
Bank of England Monetary Policy Committee Signals Cautious Approach to Interest Rate Cuts Amid Persistent Wage Growth and Inflation Pressures
×