Eustice confident that UK will avoid a CO2 crisis

The Environment secretary has said that he is now “confident” that the UK food industry will avoid a supply crisis.

This follows reports yesterday that the government will provide support for Durham-based CF Industries to ensure the firm recommences production of CO2.

The current problem is being exacerbated with the fact that two other plants, one in the UK and one in Norway, which would also normally produce CO2 are currently closed for maintenance.

The Food and Drinks industry had previously suggested that it could run out of CO2 as early as the end of this month.

Speaking on the BBC Radio 4 ‘Today’ programme this morning, Environment, Food and Rural affairs secretary, George Eustice refused to be drawn on the exact amount of support the government would be offering, but acknowledged it would be in the many millions.

Defending the intervention, Eustice said that, “the critical thing was to get the production up and running expeditiously.”

He went on: “It is a short period of time, we are going to help the business with some of its fixed operating costs over the next few weeks, 3 weeks, and then the market will adjust”, adding, “The market is going to have to adjust, there will be a significant increase in the price of carbon dioxide that will be passed on to industry. We need a market-based solution for this in the medium term”.

“In the short term, everyone who needs carbon dioxide will have the carbon dioxide they need. The role of government here is to make sure that we have resilience in our supply chains”.