BEIJING, Aug. 26 (Xinhua) -- Soaring energy prices are triggering a chain reaction in many European countries. A large fertilizer producer in the United Kingdom announced on the 24th that it would suspend the production of ammonia and its by-product carbon dioxide, which made the beer production and animal slaughtering industries that need carbon dioxide worry.
The British CF Fertilizer Company said on the 24th that due to the high price of natural gas and carbon, its plant in Billingham will suspend the production of ammonia, and the by-product carbon dioxide generated during the synthesis of ammonia will also be stopped. CF Fertilizer Company is part of CF Industries. CF Fertilizers produces more than 60% of the UK's total demand for carbon dioxide each year.
A factory at CF Industries in the United States, photographed in Cheshire, Uk, on September 22, 2021. Xinhua News Agency (Photo by Jon Humper)
Many Britons like to drink beer, and taverns can be found everywhere in towns and large. The beer brewing process requires carbon dioxide injection.
Emma McLagin, director of the British Beer and Pub Association, said the supply chain was already strained and the CF shutdown decision was even worse, "the situation can't get any worse". "There are serious concerns about whether the industries will continue to have access to carbon dioxide," she said. Ensuring this supply is essential for the winemaking industry as well as for taverns. ”
Staff at a pub in Winchester, Uk, pick up a beer on July 4, 2020. Xinhua News Agency (Photo by Tim Ireland)
The British animal slaughter industry generally uses carbon dioxide to make them hypoxic coma before slaughtering pigs and poultry. In addition, ammonia is an important raw material for fertilizers. Therefore, for farmers, CF Fertilizers stopped production of ammonia and carbon dioxide, which are related to crop cultivation and animal slaughter, respectively.
Minette Butters, president of the National Farmers' Federation, said the federation was watching the impact of the shutdown on ammonia and carbon dioxide supplies in the market, which was "extremely worrying, indicating that fertilizer and energy markets are under pressure".
Fuels such as natural gas are essential raw materials for the production of ammonia. The Dutch Ownership Transfer Center (TTF) benchmark natural gas futures price, which is regarded as the wind vane of European natural gas prices, exceeded 300 euros / MWh in the intraday on the 25th, climbing to 316 euros / MWh at one point.
This is a natural gas stove photographed by a home in Winchester, England, on Feb. 3. Xinhua News Agency (Photo by Tim Ireland)
Norway's Yara International Company, a major global fertilizer producer, said on the 25th that due to the soaring price of natural gas, it will further reduce its ammonia production in the European region. German chemical company BASF has also said it is considering further ammonia production cuts.
Carbon dioxide is widely used in the food and beverage industry. In addition to beer, carbonated beverage production and animal slaughter, packaging bags filled with carbon dioxide can extend the shelf life of food, and dry ice made with carbon dioxide can keep food fresh during transportation.
In September last year, cf fertilizers in the United Kingdom closed two major plants due to high natural gas prices. The UK government later became involved in bailing out CF plants, and the UK-related industries also reached an agreement to ensure a sustainable supply of carbon dioxide.
A spokesman for the British government said on the 25th that since last autumn, through measures such as increasing additional imports and restoring domestic production capacity, the resilience of the carbon dioxide market has improved compared with before, and the government will continue to study ways to help the market regain vitality in the long run.
The spokesman called on relevant industries to take the public interest as the starting point and try their best to meet market demand. (Guo Qian)