Britain’s 2021 CO2 Crisis: Causes, Impacts, and Lessons

Britain’s 2021 Carbon Dioxide Crisis: How a National Shortage Exposed Systemic Vulnerabilities

In late 2021, the United Kingdom was confronted with an unprecedented challenge—a sudden and severe carbon dioxide (CO2) shortage that threatened to bring parts of the food industry and other critical sectors to a halt. This episode not only exposed the country’s unexpected dependency on CO2 but also drew attention to the intertwined nature of the UK’s energy, food, and manufacturing systems.

Why Does the UK Need So Much CO2?

Carbon dioxide is often seen purely as a greenhouse gas to be reduced, but it is pivotal to the smooth running of modern society, especially in the food and drink sector. In the UK, CO2 is used for:

• Food processing and packaging: Carbon dioxide extends the shelf life of perishable foods by replacing oxygen in food packaging. It is essential for preserving meat, fresh produce, and ready meals.
• Slaughterhouses: CO2 is used in the stunning process for pigs and poultry, ensuring humane and legal slaughter in line with animal welfare standards.
• Beverage carbonation: Nearly all soft drinks and beer require CO2 for carbonation, making it indispensable for the drinks industry.
• Cold chain logistics: Dry ice (solid CO2) is vital for keeping items frozen during transport, further securing food supply by maintaining cold chains.
• Medical and industrial use: CO2’s uses extend to medical procedures and industrial cleaning, such as in fire extinguishers and the bulk freezing of pharmaceuticals.

Without a reliable CO2 supply, UK industries risk significant operational disruption.

The Causes of the 2021 CO2 Shortage

The 2021 CO2 crisis was not caused by a sudden spike in demand, but rather by supply-side shocks rooted in the UK’s heavy reliance on fossil fuel-derived CO2. Several factors converged to create the perfect storm:

• Rising natural gas prices: Europe faced an energy crunch in autumn 2021, sending wholesale gas prices soaring. This made ammonia (NH₃) production at two large plants economically unviable.
• Plant shutdowns: CF Industries, the company operating Britain’s two largest ammonia plants (in Billingham and Ince), halted production. These sites supplied about 60% of the UK’s food-grade CO2 as a by-product.
• Lack of alternative suppliers: The remaining domestic CO2 producers and imports from Europe were insufficient to compensate for this sudden, overwhelming loss in local production.
• Weak supply chain resilience: The crisis revealed just how little buffer or redundancy existed in the UK CO2 supply chain.

In summary, the UK’s CO2 infrastructure was more vulnerable to shocks than many had anticipated, exposing a critical dependency on a single industrial by-product.

Who Supplies the UK’s CO2?

The vast majority of the UK’s food-grade CO2 is not manufactured directly as a primary product. Instead, it is captured as a by-product from other chemical processes, especially during the production of ammonia for fertilizer. The two main plants, both operated by American company CF Industries, dominated the UK’s CO2 output until the crisis:

• Billingham Plant: Located in Teesside, northeastern England, this facility provided a large portion of the UK’s CO2 output.
• Ince Plant: Situated in Cheshire, the Ince facility worked similarly, producing ammonia for fertilizer and capturing CO2 as a secondary product.

Other smaller domestic sources and some imports from EU countries made up the difference, but the sudden closure of these two plants exposed a dangerous lack of diversification.

How Food and Drink Industries Were Disrupted

The shutdown of the main CO2 plants quickly rippled through the food and drink supply chains. Supermarkets, meat producers, and beverage companies faced imminent shortages. The disruptions unfolded on several fronts:

• Meat processing facilities: Pigs and poultry could not be slaughtered humanely or legally in the absence of CO2, threatening animal welfare and leading to shuttered slaughterhouses.
• Fresh food packaging: Alternative methods to extend shelf life were difficult to implement rapidly, so food waste risks soared.
• Beverage production: Breweries warned of severe shortages of carbonated drinks and beer within days of the crisis beginning.
• Supermarket shelves: There were serious concerns that perishable items and ready-meals would disappear from shelves.
• Food exporters: Exporters faced difficulties in keeping produce fresh during long-haul transportation due to lack of dry ice.

The crisis highlighted the delicate balance that keeps the UK’s food industry running smoothly—and how rapidly that balance could tip.

Broader Impacts on UK Industry

Beyond food and drink, the CO2 crisis also disrupted other sectors:

• Healthcare: Hospitals and laboratories use CO2 for medical procedures, sterilization, and laboratory analyses.
• Fire safety: Fire extinguishers commonly rely on compressed CO2, making their supply vulnerable in such crises.
• Manufacturing: Dry ice is used for industrial cleaning and maintenance, as well as for transporting temperature-sensitive materials.
• Energy production: Some clean energy technologies (such as carbon capture, utilization, and storage, CCUS) require reliable CO2 flows, though this was a less immediate concern.

The shockwaves showed how an unexpected shortfall in one industrial product could reverberate across an entire national economy.

Lessons and Systemic Vulnerabilities

The 2021 CO2 shortage raised several alarming systemic questions for British society, policymakers, and industry. Key lessons included:

• Hidden dependencies: Most people were unaware of how critical CO2 is for food security, public health, and basic economic functionality.
• Single-point-of-failure risk: With 60% of supply coming from just two plants, resilience was an afterthought—even though these facilities historically shut down for maintenance or market reasons.
• Fossil fuel dependency’s paradox: While climate goals push for a reduction in fossil fuel use, key industries unexpectedly depend on their by-products. If ammonia and fertilizer production shrink in a post-fossil future, how will industrial-grade CO2 be sourced?
• Poor supply chain resilience: There were no robust stockpiles available, and little capacity for substitution. Short-term panic underscored the failure to plan meaningful contingencies.
• Environmental and ethical tensions: Major disruptions left policymakers balancing carbon mitigation, food security, animal welfare, and economic stability.

The CO2 crisis is a warning about the fragility lurking in the supply chains underpinning daily life, particularly as the UK—and world—move toward net-zero carbon futures.

Policy Reactions and Long-Term Change

In response to the unfolding crisis, the UK government intervened, brokering a temporary financial deal with CF Industries to restart production. This was a stopgap, however. The episode prompted deeper scrutiny and set off important discussions about energy, food resilience, and industrial strategy going forward:

• Government intervention: Emergency subsidies were provided to quickly restart ammonia and thus CO2 production to stabilize critical supplies.
• Re-examining industrial strategy: Calls grew louder to diversify CO2 sources, including renewable technologies like biogas upgrading or direct air capture.
• Supply chain fortification: Industry groups and policymakers began working to introduce stronger contingency plans, stockpiling protocols, and support for alternative CO2 suppliers to buffer against future shocks.
• Net-zero transition: Policy discussions now weigh how to ensure CO2 supply for essential industries in a low-carbon future, potentially decoupling vital by-products from the fossil-dependent fossil economy.

While the immediate crisis abated, the underlying vulnerabilities—and the need for systemic change—remained clear.

Frequently Asked Questions (FAQs)

Q: Why is CO2 so crucial for the food industry?

A: CO2 is used in meat slaughter, carbonation of drinks, food packaging (for shelf-life extension), and as dry ice for transporting frozen goods. Without it, supply chains for everything from ready-meals to supermarket chicken are quickly disrupted.

Q: What caused the British CO2 shortage in 2021?

A: The immediate cause was the shutdown of two main fertilizer (ammonia) plants due to soaring natural gas prices, instantly slashing 60% of the UK’s CO2 supply as these plants provided CO2 as a by-product.

Q: Could this happen again?

A: While emergency measures and new protocols are being developed, the risk remains unless the UK diversifies its CO2 sources and builds system resilience. Heavy reliance on fossil fuel by-products is a structural vulnerability.

Q: Are there sustainable alternatives to current CO2 production in the UK?

A: Yes, potential options include capturing CO2 from biogas, fermentation industries, and even from the atmosphere (direct air capture). However, these are not currently operating at a scale to replace fossil-based sources nationwide.

Q: Did this crisis affect prices or availability of food and drinks?

A: Yes. While the government intervention prevented the most severe shortages, the threat led to price pressure, reduced choice, and warnings from retailers and producers of temporary empty shelves.

Conclusion: Rethinking Critical Resources in a Net-Zero World

The UK’s 2021 carbon dioxide shortage underscored hidden weaknesses in the nation’s food and industrial supply chains, driving home how interconnected and fragile these systems are. As the world accelerates toward a low-carbon future, policymakers and industry leaders must rethink how to produce and secure vital resources like CO2—striking a balance between resilience, sustainability, and economic security.