Flat beer for the World Cup — EU’s CO2 crisis
Europe’s running out of CO2 and it’s hurting the food and beverage industry. At first you just think carbonated beverages and beer when you hear that there is a CO2 shortage but just as critically the shortage is impacting the chicken and meat industries as without CO2 to use in their stun guns the abattoirs can’t process the animals. The packaging industry isn’t immune either as CO2 is used in the modified atmosphere packaging of fresh meat and salads.
Peak demand for CO2 in the food industry in Europe is during summer but the peak production time is during winter as the gas is usually sourced as a by-product from ammonia plants supplying the fertiliser industry. Fertiliser demand is at its highest during winter. This demand anomaly doesn’t usually result in CO2 shortages during summer, but this year, five CO2 producers in northern Europe have simultaneously gone offline for maintenance and the currently low ammonia prices have meant that the companies aren’t in a hurry to restart production.
Major ammonia plants exist in the UK, Norway, the Netherlands and in France, but at the moment there is only one big CO2 producer in action in the UK.
All major suppliers of liquid CO2 have been affected by the raw gas sourcing issues — including Praxair, Messer, Linde and Air Liquide. Even ACP (recently acquired by Air Products) has been impacted by the downturn in CO2 output.
According to the British Beer and Pub Association (BBPA), which represents brewers and 20,000 UK pubs, the CO2 shortage is beginning to cause stoppages in beer production, although it did not name specific companies.
The association has issued some guidance to its members reminding them that CO2 used in drinks, including for dispensing beer at the pumps, must be food-grade gas.
The British Meat Processors Association and the British Soft Drinks Association are also concerned about the impact the shortage is having on their members.
It is hoped that the crisis will resolve through July.
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