Britain faces another CO2 crisis and consumers will have to pay even more for produce unless a new deal is struck with the US fertilizer company which produces 60% of the UK’s supply United, food and drink companies warned today.
CO2 is used for everything from humanely slaughtering chickens and pigs, to fizzing soft drinks and creating packaging that keeps food fresh. And it is essential for cooling nuclear reactors and as well as keeping certain medicines and vaccines cold, and used throughout the NHS.
Last September, Illinois-based CF Industries, one of the world’s largest fertilizer companies led by multi-millionaire chief executive Tony Will, 55, closed its two factories in Teesside and Cheshire after a strong skyrocketing gasoline prices. be profitable.
The company produces around 60% of the UK’s industrial CO2 as a by-product of fertilizer manufacturing. He reopened his UK operations when ministers offered them a state-funded deal worth ‘tens of millions’, before helping strike a three-month price-fixing deal between the CO2 producers and industry which will end on January 31st.
The UK Food and Drink Federation (FDF) has concluded that a new deal must be struck within five days to avoid a 2022 crisis, at a time when the cost of living is also skyrocketing.
“We are concerned that with only a few days left before the end of this agreement, and with energy prices remaining very high, there will once again be further CO2 shortages,” said one. spokesperson, adding: “This could lead to shortages in the products we find on our supermarket shelves – adding further pressures to families already facing high food price inflation”.
CO2 is used to stun animals for slaughter, pack meat and also in refrigeration systems. It is also used in soft drinks, beer, cheese, fruits and vegetables and crumpets, among others (empty shelves last September)
Business Secretary Kwasi Kwarteng (right) persuaded CF Industries millionaire CEO Tony Will (left) pictured to restart production at fertilizer plants which produce 60% of CO2 supplies from the UK, but had to offer taxpayer-funded sweetener to revive them
Oatly ads are BANNED due to misleading environmental claim that giving up dairy is good for the planet
Two TV commercials claimed: “Oatly generates 73% less CO2e (carbon dioxide equivalent) compared to milk, calculated from producer to grocer”
The UK’s advertising watchdog has banned a high-profile marketing campaign by oat milk company Oatly after ruling its green claims were ‘misleading’.
The Advertising Standards Authority (ASA) launched an investigation into the campaign after receiving 109 complaints, including from environmental group A Greener World.
In an advertisement in a national newspaper, the Swedish alternative milk brand said: “Climate experts say cutting dairy and meat products from our diets is the biggest lifestyle change we can make to reduce our impact. environmental”.
The ASA ruled that consumers would understand the claim as a “final and objective claim based on scientific consensus”, when in fact it was the opinion of a climate expert.
Oatly claimed that following a vegan diet would reduce a person’s environmental impact more than reducing flights, buying an electric car or buying sustainable meat and dairy.
In paid ads on Twitter and Facebook, the company insisted that “the dairy and meat industries emit more CO2 than all the planes, trains, cars, boats, etc. in the world combined”.
However, the advertising watchdog discovered that Oatley had ‘overestimated’ emissions from the meat and dairy industry because the company had not taken into account emissions spanning the life cycle. complete with transportation.
Oatly said he had no intention of repeating the claim and deleted posts making similar claims on his own social media.
Two television commercials claimed: “Oatly generates 73% less CO2e (carbon dioxide equivalent) compared to milk, calculated from producer to grocer”.
Industry leaders had warned that another shortage could bring the entire meat processing system to a halt.
Nick Allen, chief executive of the British Meat Processors Association, said: “Our members have been assured, along with the NHS and the nuclear power industry, that animal welfare will come first, so from the point of view of the meat, we must take this assurance that in fact we will have priority and we will not have any problems.
“But we had a meeting the other day, we heard there would be a huge impact on the brewing industry, the soft drink industry. CO2 is very widely used, so if agreement is not reached between CF Industries and the suppliers, there will be problems somewhere, it will be a bit of a fight and the prices will have to increase considerably.
CF Industries has been accused of holding the country to ransom by shutting down and has been accused of plunging Britain into a crisis that threatened to force farmers to slaughter animals and leave supermarket shelves empty.
They halted production in September and insisted it had no “estimate of when production would resume”.
A deal was struck a week later that would cost the taxpayer tens of millions of pounds.
The company has assets of $15 billion and is headquartered in Illinois. It is one of the largest fertilizer companies in the world and was previously responsible for 25% of US fertilizers.
CF chief executive Tony Will, who was paid £7million last year, previously shared photos of himself aboard an Egyptian billionaire’s yacht in Saint-Tropez and enjoying a beer in a private jet, according to the Times. He made his Instagram account private shortly before news of the government’s deal with CF Industries went public.
Documents seen by The Mail on Sunday show that just a month before the deal was negotiated, CF Industries said it would pay $65m (£47.4m) to its investors – including the director General Tony Will, who owns 488,789 shares.
The government has warned that businesses will still have to accept CO2 costs rising fivefold, from £200 a tonne to £1,000. Ministers urge industry to use time to find ways around current shortages, triggered by unprecedented surges in the natural gas market.
CF Industries employs thousands of employees in the United States, Canada and the United Kingdom.
Around 400 employees are based at the company’s Cheshire site, where one million tonnes of fertilizer are produced a year, supplying the grass and agriculture sectors.
It employs around 200 people in Teesside and has an estimated £500million-a-year supply chain to the region’s economy. Earlier this year it was revealed the firm was ‘weighing its options’ in the North East after being slapped by Ofgem with a multi-million bill.
CEO Will joined the company in 2007 before becoming its leader in 2014.
Will was previously senior vice president, manufacturing and distribution, where he was responsible for the annual production of 15 million tons of fertilizer, distributed to 70 sites.
He was previously a director of Boston Consulting Group, Inc., chairman, president and CEO of Terra Nitrogen Co. LP, vice president of business development at Sears, Roebuck & Co., partner at Accenture Ltd. and vice president of strategy. & Business Development at Fort James Corp.
Will earned an undergraduate degree from Iowa State University and an MBA and graduate degree from the Kellogg School of Management.
The CF Industries plant in Billingham, Teeside, which the US firm has closed due to rising petrol prices
The CF Industries factory in Ince, Merseyside. The two factories together produce 60% of the UK’s CO2