A massive hike in the price of carbon dioxide (CO2) is threatening the production of beer and may cause a shortage of the beverage. Carbon Herald reports brewers are being hit particularly hard as CO2 is used in a whole series of steps in the beer-making process, from carbonating to packaging.
Three months ago UK brewers were paying an average of £250 per metric tonne of CO2. Last week the price peaked at £2,800 per tonne.
US fertiliser group CF Industries - which produces about a third of this country's supply of CO2 - last month announced it would be shutting down its ammonia plant in the UK in response to rising gas prices. 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.
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.
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