Food minister Mark Spencer has called for fresh government intervention to tackle the threat of CO2 shortages, in an apparent change of direction by Defra.
Speaking to MPs on the All-Party Parliamentary Group on the Food and Drink Supply Chain yesterday, Spencer urged new talks with CF Fertilisers, the US-owned company that owns the Billingham plant in Teeside, which was the main source of UK CO2 production until last year.
In September, the company announced it was shutting down home-grown ammonia production in favour of using imported products.
UK suppliers have faced rocketing CO2 prices and a scramble to find alternative suppliers, with the government having previously been adamant it would not intervene following two previous multimillion-pound bailouts to CF to keep CO2 supplies running.
Previously, Defra was said to be “relaxed” about the situation and willing to let market forces decide it.
But Spencer told MPs: “There is enough CO2. Wwe are managing to get enough, but lots is coming from the Dutch rather than being produced at Billingham.
“That is a commercial decision by CF and I hesitate to step into the free market but I think there is as conversation to be had as to how exposed we are to a global player in the marketplace.
“I would consider it critical infrastructure.”
Senior industry sources have for a long time urged the government to come up with a strategy to end dependence on the US company for such a key part of the supply chain.
“These are important chemicals for the British public and I think it’s worth a conversation between BEIS and CF to make sure they are playing their part in solving the problems we face,” Spencer added.
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