Britain tells its food industry to prepare for CO2 gas price shock
Britain has warned its food producers to prepare for a 400% rise in carbon dioxide prices after extending emergency state support to avert a shortage of poultry and meat triggered by soaring costs of wholesale natural gas, Reuters reports.
Natural gas prices have spiked this year as economies reopened from Covid-19 lockdowns and high demand for liquefied natural gas in Asia pushed down supplies to Europe, sending shockwaves through industries reliant on the energy source.
Carbon dioxide (CO2) is a by-product of the fertilizer industry - Britain's main source of CO2 - where natural gas is the biggest input cost. Industrial gas companies, including Linde, Air Liquide and Air Products and Chemicals, get their CO2 mainly from fertilizer plants.