A mothballed factory in Teeside that produced carbon dioxide will be reopened with £100m in government funding because of fears the UK could face shortages of the gas following the war in Iran.
The Ensus plant primarily manufactured bioethanol and outputs CO2 as a by-product, but it was shuttered last year after a trade deal removed tariffs on ethanol imports from the US.
CO2 is a vital component in healthcare and food production, where it’s used to make fertilisers and packaging that keeps food fresh. But the war in Iran is increasingly disrupting the production of fertiliser in Europe, leading the government to reopen the plant to ensure supplies remain secure.
The Department for Business and Trade said it had intentionally kept the facility on standby after its closure in the autumn after recognising its importance as a natural security asset. The £100m injection will see it restarted on a temporary basis for three months in the hope that the CO2 supply chain will stabilise.
A deal was...