Carbon dioxide plays an essential role across multiple UK industries, supporting food production, healthcare processes and parts of the energy and nuclear sectors. Disruptions to supply can affect manufacturing, medical services and supply chains, particularly when domestic production capacity is limited.
The UK government has backed the restart of the Ensus bioethanol plant in Teesside for a three-month period to support domestic CO2 supply. The Department for Business and Trade confirmed the move following supply risks linked to European production disruption and rising gas prices. The action is intended to stabilise supply for healthcare, food production and nuclear operations during a period of market uncertainty.
Government action to secure CO2 supply
The government supported the temporary restart of the Ensus plant to strengthen domestic CO2 production. The decision was taken to address risks of supply shortages affecting essential sectors.
The intervention reflects efforts to maintain resilience in supply chains during periods of external disruption. It also builds on earlier action to keep the facility available for emergency use.
Why CO2 supply is under pressure
Disruptions to European fertiliser production have reduced the reliability of imported CO2. At the same time, rising gas prices linked to the Iran conflict and maintenance at production sites have increased supply pressures.
These combined factors have created conditions where the UK market risks being undersupplied. The government identified the need to act to stabilise availability across affected industries.
- Reduced European fertiliser output
- Rising gas prices linked to global events
- Maintenance at CO2 production sites
- Increased import uncertainty
Supply pressure factors
| European production | Lower output reducing availability of imported CO2 |
| Gas prices | Increased costs affecting production and supply stability |
| Maintenance activity | Temporary shutdowns at production facilities |
Role of the Ensus Teesside plant
The Ensus bioethanol plant had ceased production and was expected to close permanently. Government engagement ensured the site remained on standby, allowing it to be reactivated when needed.
The current restart will run for a three-month period to increase domestic CO2 production. This provides additional capacity to support supply resilience during the period of market disruption.
Importance of CO2 for critical UK sectors
Carbon dioxide is used across a range of industries including healthcare, food processing and nuclear operations. Consistent supply is necessary to maintain production processes and operational continuity.
The government identified that shortages could affect these sectors directly, leading to wider impacts across supply chains and services.
- Healthcare and medical applications
- Food and drink production
- Nuclear and industrial processes
- Water and packaging systems
CO2 usage across sectors
| Healthcare | Used in medical procedures and equipment |
| Food production | Supports packaging and processing operations |
| Nuclear sector | Applied in certain operational and safety processes |
Government strategy for industrial resilience
The restart forms part of wider efforts to support supply chain resilience and protect domestic industry. The government has taken steps to maintain production capacity in sectors affected by global disruption.
These actions include ongoing engagement with industry and monitoring of supply conditions. The approach aims to maintain stability while ensuring value for money for taxpayers.
Next steps for long-term supply security
The government stated it will continue to monitor market conditions and work with CO2 suppliers to manage supply. It also plans to support longer-term diversification of domestic CO2 production.
These measures are intended to reduce reliance on imports and improve resilience in future supply disruptions.
Stakeholder Comments
Ministerial Comments
Peter Kyle, Business Secretary said;
“As a government of action we will always do what’s needed to ensure resilience and protect British businesses from the worst impacts of global uncertainty. That’s why we have been in discussions with Ensus since September to keep this plant on standby for situations like this.”
“By restarting this plant we’ve acted swiftly to boost the resilience of our supply chains and protect sectors like food production, water and healthcare.”
Grant Pearson, Chairman of Ensus said;
“This agreement of support from the UK Government is excellent news for our employees and those in our supply chain. It strengthens the Teesside manufacturing economy and the UK’s resilience in relation to CO2 supplies used by food and drink companies, hospitals and industry.”
In Conclusion
The temporary restart of the Ensus plant provides additional domestic CO2 production to support sectors reliant on stable supply. The measure addresses immediate market pressures while contributing to broader resilience planning.
Ongoing monitoring and collaboration with industry will inform future decisions aimed at maintaining supply stability and reducing exposure to external disruptions.
Sources: Department for Business and Trade and The Rt Hon Peter Kyle MP.
Prepared by Ivan Alexander Golden, Founder of THX News, an independent news organisation delivering timely insights from global official sources. Combines AI-analysed research with human-edited accuracy and context.
