The UK government has approved a £100m investment to restart a mothballed carbon dioxide plant on Teesside, amid fears that the war in Iran could lead to shortages of the gas. The Ensus plant, which was closed in September, will resume production for at least three months to bolster supplies of CO2 used in food preservation, drink carbonation, medical procedures, and animal slaughter.
Business Secretary Peter Kyle confirmed the reopening, which follows concerns over rising energy costs and disruptions in European fertiliser production. The plant was originally shut after a trade deal with the US cut tariffs on bioethanol imports, making domestic production uneconomical. An unnamed government official noted the irony that the plant closed due to a deal with Donald Trump and is now reopening because of his war in Iran.
Grant Pearson, chair of Ensus UK, said the support would strengthen the Teesside manufacturing economy and the UK's resilience in CO2 supplies, which are vital for food and drink companies, hospitals, abattoirs, and the nuclear industry. Kyle stated the government intervened to protect critical sectors and jobs from global uncertainty.
The Department for Business and Trade said the move is part of wider work to ensure access to critical industrial resources during global supply shocks. The UK faced a similar CO2 crisis in 2021 and 2018, when shortages affected food production and brewing. The Ensus plant, which employs about 100 people, has operated on Teesside since 2010, producing bioethanol and CO2 as a byproduct.
