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Bloomberg: Expensive energy reduces beer consumption for Britons

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Bloomberg: Expensive energy reduces beer consumption for Britons

In addition to the skyrocketing cost of living, Britons now face the risk of running out of beer. Well-known British pubs, beer houses, are sounding the alarm that supplies of liquefied carbon dioxide, which they use to make beer and other soft drinks, are running out. Concerns about carbon dioxide have intensified in recent days when fertilizer company CF Industries Holdings announced it would stop ammonia production at its plant due to high natural gas prices. The company in question controls a very large market share and covers 42% of the country’s carbon dioxide needs. In short, the problem is getting bigger as it affects industries that need carbon dioxide. Natural gas is a key ingredient in most nitrogen fertilizers, and carbon dioxide is a by-product of this process.

Carbon dioxide is a necessary element in related industries as it is also used in food and beverages. Primarily it helps preserve foods, but when it comes to beer and soft drinks, it’s the ingredient that creates the characteristic foam. Therefore, the British Brewers Association asked the government to protect local production and local pubs.

However, according to a Bloomberg report, London appears to be reluctant to offer further bailouts to CF Industries, contrary to the steps it took last year when we urged it to keep producing carbon dioxide.

Stocks of liquefied carbon dioxide are running out as companies cut production.

Corresponding problems, of course, are observed in other countries. Brewer Carlsberg, for example, has warned that it could be forced to cut or even halt beer production in Poland due to a shortage of liquefied CO2 as the country’s largest chemical company, Beata Ptaszynska-Jedinak, halted production.

Of course, the source of the problem goes back to the rise in natural gas prices against the background of the energy crisis in Europe and the bitter struggle between the EU and the EU. and in Russia.

Author: BLOOMBERG

Source: Kathimerini

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