UK: Rising carbon dioxide prices put UK beer industry under threat

CO2 plays a crucial role in the beer-making process, from carbonation to packaging, meaning brewers are facing the pressure to meet costs.

Carbon Herald reports prices of the gas have currently peaked at £2,800 per tonne. Three months ago, producers were paying £250 per metric tonne of CO2.

The production of CO2 has been impacted partly due to rising wholesale gas prices. As the gas is a bi-product of fertiliser, the rising costs meant many fertiliser plants in the UK were forced to close.

Last month, US fertiliser group CF Industries - which produces about a third of this country's supply of CO2 - announced it would be shutting down its ammonia plant in the UK.

Ensus, which supplies 40%, has temporarily closed its bioethanol plant in Teesside in another blow to the beer industry still reeling from the effects of the coronavirus pandemic, reports Wales Online.

The massive price hike is hitting small and regional brewers mainly as the bigger brewers have carbon capture systems that allow them to recapture their emissions.

Supply chain issues threaten to bring some beer production to a halt as the industry is hit with another body blow to contend with following the pandemic.

Carbon dioxide is a staple in the foods and drinks industry as its used in various products. Other foods which rely on it include meat, poultry, soft drinks, McDonalds milkshakes and crumpets.