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Khan urged to get tough on protests STEFAN BOSCIA
CARBON DIOXIDE SHORTAGE SET TO HIT DRINKS MANUFACTURERS NICHOLAS EARL THE UK could be set for another carbon dioxide shortage after one of the UK’s main producers terminated production due to high energy costs – leaving brewers, pubs and food manufacturers fearing the worst. US outfit CF Fertilisers yesterday announced they were halting production of ammonia at their Teesside factory – instead importing the gas from the United States. Carbon dioxide is produced as a byproduct of ammonia production, and CF Fertilisers are one of the UK’s key
suppliers. The business department fears that alternative CO2 supplies will only meet fifty to sixty per cent of UK demand. CO2 is used in the production of everything from medical kit to craft beer, and CF provides a significant amount of the UK’s overall supply. Last year, CF Fertilisers received a short-term bailout from the UK government to continue the production of ammonia despite high energy costs. So-called ‘food grade’ CO2 is used to carbonate water and alcoholic drinks, dispense beer in pubs, ‘stun’ animals before slaughter and crucially to keep
food cool during shipping. The carbon dioxide shortage prompted fears of empty shelves in supermarkets and pubs being unable to serve pints. City A.M. understands that the government is confident there will be sufficient CO2 to cover critical national infrastructure demand, such as that required for the running of nuclear power plants and the medical supply chain, but that other users including drink manufacturers may experience some shortages. Last night Emma McClarkin, chief executive of the British Beer and Pub Association, said “the timing of this news
couldn’t be worse” amid worries over inflation and energy costs. “This news raises serious concerns for the sustainable supply of CO2 to the brewing and pub industry,” she told City A.M., urging the government to act to ensure “reliable” supplies. A government spokesperson said that “since last autumn, the... market’s resilience had improved” but that officials were examining options to increase UK supplies over the longer term. CF Fertilisers said they will be able to meet all ammonia orders and there will be no disruption to fertiliser supply.
SADIQ KHAN has been urged by the Tory caucus in City Hall to stop Extinction Rebellion’s planned occupation of Hyde Park next month. Susan Hall, leader of the London Assembly Tories, said Khan must intervene to stop the “hypocritical and lawless” climate change protest from taking up police resources. A spokesperson for Khan said the mayor “supports the democratic right to peaceful protest”, but that “protests must be carried out safely and lawfully and should not put Londoners or the capital’s economic recovery at risk”. The protest will begin on 10 September, with the group planning to occupy the park for three days. Extinction Rebellion shot to fame in 2019 for blocking off large parts of central London and blocking the entrances to buildings used by large multinational firms. They last appeared in the City earlier this year, hosting a drumming session outside the Lloyd’s of London building. £ THE CITY VIEW: PAGE 2
Energy bosses rally round deficit fund and cap freeze amid price spikes NICHOLAS EARL ENERGY bosses are rallying around Scottish Power’s call for a “tariff deficit fund” to ease the pain facing millions of Brits this winter. There are growing expectations Ofgem will announce a massive 80 per cent hike to the price cap
this week, ramping up household energy bills to at least £3,500 per year from October. The cap is already at a record level of £1,971 per year. Scottish Power’s Keith Anderson has urged the government to consider a £100bn scheme to freeze the price cap for two years with
state-backed loans, which would be paid back over 15-20 years by consumers. He told the BBC “bold” action was needed, describing forecasts of a £3,500 per year price cap in October as “horrific”. Business secretary Kwasi Kwarteng has held talks with UK
industry bosses in recent weeks, including with Anderson. Kwarteng is likely to become Chancellor if frontrunner Liz Truss wins the Tory leadership contest, and Anderson believed he was seriously considering the supplier’s proposal. Octopus boss Greg Jackson has
lent his support to the idea, while City A.M. understands Ovo Energy and EON UK are also supportive of the scheme. Bill Bullen, boss of Utilita Energy, has also called for a price cap freeze but said the vulnerable would need more help. £ CONTINUED ON PAGE 3
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