UK businesses fear CO₂ cuts after major producers pause production – Business Live | Business

Britain’s drinks and food industries CF Fertilizer are understood to be concerned there could be a shortage of CO2 if the UK stops producing ammonia and CO2.

Emma McClarkinCEO British Beer and Pub AssociationThe timing of this news “couldn’t be worse,” he said.

Pubs and brewers are already dealing with severe headwinds and pressures on their supply chains. McClark They pointed out, adding

“This decision poses a serious threat to the sustainable supply of CO₂ for the brewing and beverage industry.

“A guaranteed supply is essential for operations in the pub and brewing businesses.”

National Farmers Union President Minet Butters said the move was monitoring both the impact on fertilizer production, of which ammonia is a key ingredient, and CO₂ (used to stun cattle before slaughter).

The move is “extremely worrying and reflects the pressure on the fertilizer and energy markets,” she said.

The UK government has called for a deal to meet carbon dioxide demand after saying it would quit due to high natural gas and carbon prices.

A government spokesman said.

“The resilience of the CO₂ market has improved since last autumn, with more imports, more domestic production and better inventories.”

“While the government will continue to explore options for the market to improve long-term resilience, it is important for the public and the industry to do everything possible to meet demand.”

Yesterday, CF Fertilizers UK said it would cease production of ammonia, which produces CO₂ as a by-product, at its Billingham complex in Cleveland, Teesside.

The company blamed the rise in gas prices – an example of how the energy crisis can make some businesses uneconomical.

At current natural gas and carbon prices, CF Fertilizers UK production of ammonia is uneconomical, with marginal costs in excess of £2,000 per tonne and half the world price of ammonia.

Natural gas prices at NBP are now double what they were a year ago, and NBP’s forward strip suggests that this price will continue to rise in the coming months.

Once the ammonia plant is safely shut down, CO₂ Production will be halted until the plant is restarted, CF Fertilizers explained.

CO₂ is used in a variety of industrial processes, from carbonated beverages and beer to the humane slaughter of animals, including pigs and chickens.

It is also used in hospitals and nuclear power plants.

Last year, Britain faced a crisis in CO₂ At a time of high energy prices, supplies combined with annual maintenance shutdowns have almost cut UK production.

The government has been forced to use taxpayers’ money to fund three weeks’ pay for CF Industries, which accounts for 60 percent of the UK.₂ Provisions to prevent supply chain chaos before the three-month deal.

Then in February, a new industry-led contract was agreed to operate CF’s fertilizer plant in Billingham, County Durham.

A third of UK firms plan to raise prices next month, adding to inflationary pressure on the economy.

The ONS reports that 29% of companies expect the price of goods or services they sell to increase in September 2022, compared to 26% who expected prices to increase in August.

More than 40% of companies paid prices for goods and services increased in July, compared to June

UK consumers fell last week, according to the latest figures from the Office for National Statistics.

Indicators of consumer behavior were mostly muted last week, with UK credit and debit card purchases falling by 4%.

Spending fell across the board, led by big falls in “delayed” and “social” spending. They fell by 8 and 4 percent respectively, which suggests that people should cut back on non-essential purchases due to the rising cost of living.

Visits to “transit stations” were about 77% of the pre-coronavirus levels, an eight-week low, as industrial action on the railways caused disruption, with traffic on the tracks taking off.

Transactions were down in all Pret A Manger store regions last week. They fell sharply at regional and London stations (down 29 and 14 per cent respectively) – a sign that fewer people are traveling as commuters.