Business Maverick: UK risks more food havoc on CO2 cuts from fertiliser closure

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Fertiliser producer CF Industries Holdings will halt ammonia production at its remaining UK plant in response to soaring natural gas prices, a move that could reduce carbon dioxide supply crucial to the food industry.

The UK government is examining options for the CO2 market to improve resiliency over the longer term, a spokesperson said. The country already has seen an improvement with additional imports, further production from domestic sources and larger stockpiles. The government is engaging with businesses across the food industry on potential impacts, the spokesperson added.

“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,” he said. “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.”

CF said it has notified customers that buy carbon dioxide on a contract basis from Billingham about the planned halt. The company cited gas prices, which are surging on supply disruptions after Russia’s invasion of Ukraine, as well as the price of carbon, for the closure.

 

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