Photo taken on August 18, 2021 shows the Houses of Parliament in London, Britain. Photo: Xinhua

Britain has signed a deal enabling it to restart production of captured carbon dioxide for three weeks, Business Secretary Kwasi Kwarteng said Tuesday, after a shortage of the gas had sparked renewed food supply concerns. 

Two UK fertilizer plants accounting for up to 60 percent of Britain's carbon dioxide supply, which is vital for the food industry, shut down last week due to spiking natural gas costs.

But Kwarteng announced late Tuesday that following urgent talks with CF Industries Holdings, which runs the biggest of the facilities, a deal had been reached for production to be restarted.

An "exceptional short term arrangement with CF Fertilizers will allow the company to restart operations and produce carbon dioxide at its Billingham plant" in England, Kwarteng said.

"The government will provide limited financial support for CF Fertilizers' operating costs for three weeks whilst the carbon dioxide market adapts to global gas prices," he said in a statement.

"This agreement will ensure the critical industries that rely on a stable supply of carbon dioxide have the resources they require to avoid disruption." 

The carbon dioxide shortage has triggered warnings of further pressure on the country's food supplies.

Carbon dioxide is used in abattoirs to stun animals before they are killed for their meat. It is also used to carbonate beer and soda, while frozen carbon dioxide, or dry ice, keeps food fresh.

CF Industries boss Tony Will flew back into Britain on Sunday to hold urgent talks with the government.

On Monday, the government had insisted that Britain would avoid a winter gas supply emergency, as soaring gas prices also threaten domestic energy providers and household bills.

British Steel told AFP on Tuesday that it would maintain normal output but urged intervention both from the government and Ofgem.

"Power prices are spiraling out of control and is one of the biggest challenges facing our business," said a spokesman.

"We are maintaining production at normal levels, but huge extra costs like these cannot simply be absorbed or ignored. The UK government and Ofgem must act now."

AFP