It’s not the first time there’s been a severe CO2 shortage: 2018 revisited

Global ammonia capacity is expected to experience moderate growth over the next five years from 239.40 mtpa in 2022 to 293.52 mtpa by 2027. Around 95 planned and announced ammonia projects are expected to come online predominantly in North America, followed by the Middle East over the upco

Updated to add that the UK is once more struggling with a severe CO2 shortage. The well-known greenhouse gas is used a lot in the food industry, especially, and there are dire warnings that there won't be enough for Christmas in 2021. The issue lies in the commercial production of CO2: as a byproduct of the production of fertilizer, which requires natural gas supplies, A calm spell that has affected electricity production from wind farms has caused prices to rise in the UK, significantly worsening a supply crunch in the Ammonia Market caused by the world's emergence from the Covid crisis and Kremlin geopolitical maneuvers. Due to their inability to pay for gas, fertilizer plants have shut down and are not producing CO2, resulting in the same dire situation as in 2018.

Continue reading for a refresher on the situation three years ago:

The UK is experiencing a severe CO2 shortage, which will have a significant impact on food and beverage production. The method by which the gas is produced is the sole cause of the shortage. However, how is CO2 commercially produced, and why has this resulted in a shortage?

Three of the UK's four major CO2 production facilities are currently offline. There is only one left open. At least five CO2 producers are currently offline across northern Europe.

There are a few factors that contribute to the lack of carbon dioxide. In the end, it's a mix of bad timing and various factors.

How is CO2 commercially produced?
Distilling CO2 from the air is an expensive and inefficient method.

As a result, it is typically extracted from other places where it is a waste product. Anything from making beer to using fossil fuels could fall under this category.

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However, making carbon dioxide from ammonia is the most effective method.

Ammonia is a chemical that comes from water and is found in plastics, food storage, and household cleaning products. However, farming accounts for the majority of ammonia usage. Around 80% of the world's ammonia is used as a fertilizer for plants.

Natural gas is burned to separate the carbon and hydrogen atoms that make it. Ammonia is produced after nitrogen and hydrogen are combined.

The carbon atoms can then form CO2 as a byproduct when they combine with oxygen. After that, the industries that require this CO2 can purchase it.

How is CO2 commercially produced?
As previously stated, a number of factors come together to cause the current CO2 shortage.

First, summer ammonia production is typically low anyway. Since farmers rarely require fertilizer during the summer, ammonia production facilities frequently shut down for upkeep. CO2 production decreases as ammonia production decreases. Too many ammonia producers have shut down at once, contributing to the current shortage.

Additionally, the low cost of ammonia and the high cost of natural gas at the moment. As a result, factories have had to raise prices for ammonia, and farmers who want it can buy it cheaply from other countries. As a consequence of this, less CO2 and less ammonia were produced this year.

In addition, there is the World Cup and the warm weather that has been experienced in northern Europe. This indicates that sales of beverages like soda pop and beers have significantly increased. There is less than usual to go around because the production of these drinks requires CO2.

But what's the point of the shortage? That brings us to the next question: what uses does CO2 have?
CO2 is utilized in the production of both soft drinks and alcoholic beverages, as previously mentioned. Both the foam on top of your beer and the bubbles in your lemonade are made of CO2. Simply put, you won't be able to make your favorite drinks if there isn't any CO2.
But CO2 can also be used to make food. Additionally, the gas is used to stun animals prior to their slaughter for meat. The meat industry may come to a halt if animals cannot be stunned.

Additionally, CO2 is utilized in food packaging to extend the shelf life of everything from salads to meat. Additionally, it is used to make dry ice, which is used to keep food cool during transportation.

CO2 also serves a number of other important purposes outside of the food and beverage industry. It is utilized in a variety of medical procedures, the production of semiconductors, and crude oil extraction assistance.

In a nutshell, a significant problem for many industries is a lack of CO2.

When will there be enough CO2?
That is contingent on how much is required and how much is left over. According to a few UK reports, food and beverage suppliers are using emergency reserves to maintain production.

It would appear that many prominent brands have been affected, as we will discuss in the following point. That could suggest that the shortage is quite severe.

However, not all of the news is bad. One of the largest ammonia production facilities in the UK is expected to reopen next week, according to some reports. Even if that doesn't completely resolve the shortage, it should at least alleviate some of the problem.

Unfortunately, CO2 cannot simply be imported because it is difficult to transport and costly to do so. Countries that run out of CO2 are basically on their own until they can acquire more.

You should also be aware that the government cannot do much if you write to them about this. Since the industry is not regulated by the government, ministers cannot compel producers to produce more carbon dioxide.

According to a report in the trade journal Gasworld, the shortage will probably last for at least another week next week.

Some industries will take precedence over others once the supply of CO2 is restored. Because animal welfare is involved, the abattoirs will receive priority. After that, the biggest customers will get priority, so you can expect to be served freshly brewed Coca-Cola before your preferred craft cider.

Who is affected by a lack of CO2?
The sale of John Smith's and Strongbow cider on draft has been restricted at some J.D. Wetherspoon locations. Heineken has also written to pubs to ask them not to order a lot of Amstel and John Smith's Extra Smooth. Coca-Cola has also halted production until additional CO2 is available. Booker, which is owned by Tesco and sells beer to bars and restaurants, has started limiting the number of cases per customer to ten.

The largest abattoir in Scotland has also shut down, sending animals to England for slaughter. This, according to some, could result in meat shortages or even higher prices. They are hesitant to say so outright due to the risk that individuals will stockpile food and cut off everyone's supply.

Due to their inability to produce dry ice to keep frozen food cool, Morrisons and Ocado have also suspended orders.


richardwilliam93

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