Summary
The UK government will spend £100 million to reopen a CO2 plant in Teesside to address possible CO2 supply disruptions due to the war in Iran. This plant, operated by Ensus, was closed earlier after a trade deal with the US allowed more American ethanol imports, but concerns about energy costs in Europe have prompted its reopening. The plant produces CO2, which is vital for food and drink manufacturing.
Key Facts
- The UK is investing £100 million to restart a CO2 plant in Teesside.
- The plant, run by Ensus, was closed last year after a trade deal with the US.
- CO2 is important for food and drink production and livestock slaughter.
- Energy costs rising from the Iran war prompted the reopening decision.
- Iran closed the Strait of Hormuz, affecting global oil and gas supply.
- The 2021 UK food industry faced a CO2 shortage due to high gas prices.
- The US trade deal removed a 19% tariff on US ethanol imports.
