The UK is temporarily reopening a bioethanol plant to shore up CO2 supplies for local industries, including food and drinks.
According to the government’s Department for Business and Trade, the north-east England site in Wilton, Teesside, ceased production in the autumn and was slated for permanent closure by the owner Ensus.
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However, amid the disruption from the war in the Middle East and concerns over the supply of CO2, Ensus has agreed to restart production for three months following “intervention” by the UK Government.
CO2 is used in the food and beverage sector for stunning livestock, cold storage and putting the fizz in drinks. The gas is also a key component in urea fertiliser production.
Demand for alternative sources of fertiliser has increased since the US-Israel-led war began in February because the Middle East is a major exporter. Supplies from the region have been disrupted because of Iran’s blockade of the Strait of Hormuz shipping and transit route.
The trade department explained: “Disruptions to European fertiliser production – combined with difficult market conditions – have significantly reduced the reliability of CO2 imports, and rising gas prices driven by the Iran conflict, plus unplanned maintenance at several European CO2 producing sites, mean that the UK’s market for CO2 risks being undersupplied.
“Given the potential impact of a shortage on essential UK sectors, including healthcare, nuclear and food and drink production, the Government has taken the decision to back the restart of activity at Ensus to safeguard critical national infrastructure and maintain a resilient supply of CO2.”
Grant Pearson, the chairman of Ensus, said last year that the Wilton plant was at risk of closure linked to the UK’s trade deal with the US and had called on the government to intervene.
According to Business Secretary Peter Kyle, talks with Ensus have been ongoing since September.
Pearson said: “This agreement of support from the UK Government is excellent news for our employees and those in our extensive supply chain. It strengthens the broader Teesside manufacturing economy and the UK’s resilience in relation to biogenic CO2 supplies, which are vital to food and drinks companies, as well as being important to hospitals, abattoirs and the nuclear industry.”
The trade department said it “will continue to monitor market conditions closely and will work with industry, including CO2 suppliers, to manage supply, and ensure value for money for the taxpayer”.
Kyle added: “By restarting this plant we’ve acted swiftly to boost the resilience of our supply chains and protect critical UK sectors like food production, water and healthcare, as well as the jobs and communities that depend on these industries.”
