UK ENERGY CRISIS: GOVT IN CO2 DEAL TO AVERT FOOD SHORTAGES

The British government agreed to support an American-owned firm that produces much of the U.K.’s carbon dioxide, a deal designed to avert shortages of meat, poultry and packaged foods amid a crisis triggered by soaring energy costs.

Business Secretary Kwasi Kwarteng said the government would provide “limited financial support” for three weeks to CF Fertilisers, which halted operations at its U.K. plants last week due to high natural gas prices.

The Department for Business, Energy and Industrial Strategy said the “exceptional short-term arrangement” with the U.S.-owned firm would allow the company to immediately restart operations and produce CO2 at its plant in northeast England.

CF Fertilisers produces around 60% of UK’s CO2, used primarily by the food sector. The gas has myriad uses in food production, used to stun animals before slaughter, preserve fruits and vegetables before packaging and put the fizz into carbonated beverages.

“This agreement will ensure the many critical industries that rely on a stable supply of CO2 have the resources they require to avoid disruption,” Kwarteng said.