Government strikes CO2 deal after food shortage warnings

Kwasi Kwarteng

The government has struck a deal with a US firm that supplies 60% of the UK’s food-grade carbon dioxide to restart production after being warned of imminent food shortages.

CF Industries caused panic across an already stretched food supply chain late last week when it stopped production of CO2 at two of its fertiliser factories due to soaring natural gas prices. 

It is unclear what incentives the government has offered CF Industries to restart production, but earlier today business secretary Kwasi Kwarteng said the government would likely subsidise the company. 

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