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Deal reached to maintain CO2 production from North East fertiliser plant

Initial Government support for CF Industries' plant at Billingham ran out at the end of January, but has now been extended

CF Fertilisers plant at Billingham(Image: Ian Howarth)

A fresh deal has been struck to support a North East fertiliser plant that is one of the main sources of CO2 in the º£½ÇÊÓÆµ.

Last year, producers said shortages were looming after fertiliser firm CF Industries, which produces 60% of the º£½ÇÊÓÆµ’s food-grade CO2, said it would stop selling the by-product amid surging costs.

The Government struck a three-week deal in September before a further deal in October to support production at the firm’s Billingham plant on Teesside.

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That agreement ran out at the end of January, but now a new deal has been confirmed that is thought will last until the spring.

In a statement, the department for Business, Energy and Industrial Strategy said: “The carbon dioxide (CO2) industry has come to an agreement to ensure º£½ÇÊÓÆµ businesses have access to a sustainable supply of CO2 – an essential component of the national economy.

“The deal will enable CF Fertilisers’ Billingham plant to continue to operate while global gas prices remain high. It means key sectors, including food processing and nuclear power, are ensured supplies of CO2.”

There had previously been industry concerns that a shortage in CO2 could result in empty shelves at supermarkets, with fresh produce, meat and fizzy drink firms reliant of CO2 for the production and packaging of items.