Taxpayer-funded deal to reduce CO2 shortage avoids food industry crisis Business

Production is set to restart at one of the UK’s largest carbon dioxide suppliers after ministers agreed to offer a multi-million pound subsidy to taxpayers, averting the threat of widespread food shortages and supporting critical nuclear supply chains.

CF Industries is receiving temporary financial support to resume operations at one of its two fertilizer sites – the Billingham plant. With another site, Ince, the couple are responsible for around 60% of UK carbon dioxide as a by-product and were shut down after soaring wholesale gas prices became unprofitable.

Carbon dioxide is used to stun and kill animals such as chickens for slaughter as well as cool critical nuclear reactors and keep drugs cool, sparking fears of chaos in some of Britain’s most crucial industries .

Although Billingham is expected to restart production immediately, it will likely take a few days for CO2 to start being produced. Food lobby groups have warned that the gaps on the shelves would have to linger for at least a week before normalcy returns.

In a statement issued Tuesday evening, the Department of Business, Energy and Industrial Strategy said a “short-term exceptional arrangement” would remain in place for three weeks, to ensure continued immediate supplies to the sector. food.

He added: “The government has had discussions with major food producers, their trade organizations and major supermarkets and they are committed to doing everything in their power to move to a sustainable market-based solution. here the end of the three week period. “

Business Secretary Kwasi Kwarteng said, “This deal will ensure that the many critical industries that depend on a stable supply of CO2 have the resources they need to avoid disruption. “

He added: “This deal will ensure that the many critical industries that depend on a stable supply of CO2 have the resources they need to avoid disruption. “

The ministers’ decision to bail out CF Industries is likely to be controversial. The American company has paid boss Tony Will more than $ 50million (£ 37million) over six years of running the fertilizer business.

Mr. Will, 52, who was named Chief Executive Officer of CF Industries in 2014, was awarded $ 9.6 million in compensation last year, consisting of $ 3.1 million in salary from base and bonuses and an additional $ 6.5 million in stock and other compensation. Since 2014, his total compensation has exceeded $ 51.5 million.

He reportedly traveled to the UK on Sunday to speak with Kwasi Kwarteng, the business secretary, about how much money is needed to subsidize the company’s two UK fertilizer factories to reopen them. The American company’s UK business has hovered between red and red over the past six years, but has racked up overall pre-tax profits of £ 110million in total.

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This notice was published: 2021-09-22 09:14:27

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