Cost of liquid CO2 rises by almost 3,000%

ECIU’s news analysis showed the price of a tonne of liquid CO2​ had risen by almost 3,000% compared with a year ago, currently costing as much as £3,000 per tonne, compared to just £100 per tonne in 2021.

British Beer & Pub Association (BBPA​) chief executive Emma McClarkin said: “A guaranteed supply of CO2 is essential for operations across pub and brewing businesses, but currently extreme volatility in wholesale energy prices is resulting in unprecedented price fluctuations and uncertainty of supply for our industry.

Preparation is vital 

“Alongside extreme energy costs and other inflationary pressures our pubs and brewers are being forced to make extremely tough business decisions, with many not being able to plan even a week or two in advance and at a point where such preparation is vital to prepare for the festive trading period.”

According to ECIU, in the first quarter of 2022 businesses such as pubs, farms, and supermarkets had paid 71% more for gas​ than in the first three months of 2021, and 28% more for electricity.

Furthermore, the ECIU expressed fears gas prices could rise further, or even that supplies could be cut off, leading to increases in the price of liquid CO2, which is used for everything from packaging food to keep it fresh to keeping drinks such as beer fizzy.

Additionally, the research showed if gas prices were to remain high or rise further, the industry could see shortages similar to last year.

Reliable supply 

Which saw the cost of gas force some factories, such as CF Fertiliser’s factory​, close or reduce production with fears of knock-on food and drink shortages or increases in food and drink costs for consumers.

McClarkin added: “To avoid beer shortages and pub closures we need the Government to ensure there is a sustained, reliable supply of CO2 to our industry, holding suppliers to account in the process.

“Breweries need reassurance they will be able to keep producing and supplying beer to pubs so they are able to keep their doors open and serve their communities.”