Hospitality and brewing has been dealt a fresh blow with the news that CF Industries is halting ammonia production at its UK plant, in Billingham. This, in turn, will reduce carbon dioxide (CO2) supplies.

bar pour

The plant is the main source of the country’s CO2 which is used throughout the food and drink industry. A temporary closure of the plant last year led to many shortages in the supply chain. Closure now is being blamed on soaring natural gas prices.

“The timing of this news couldn’t be worse as our pubs and brewers are already dealing with severe headwinds and pressures on their supply chains,” said Emma McClarkin, chief executive of the British Beer & Pub Association.

“This decision raises serious concerns for the sustainable supply of Co2 to the brewing and pub industry. A guaranteed supply is essential for operations across pub and brewing businesses and this announcement comes at a time when they are already facing extreme cost rising that are threatening businesses and people’s livelihoods across the country.

“We urge the government to urgently convene stakeholders to ensure there is a reliable supply of Co2 to our industry and others that depend on it.”