UK to Reopen Teesside CO2 Plant with £100m Grant to Ease Shortages
UK to Reopen Teesside CO2 Plant with £100m Grant to Ease Shortages
Britain approves a £100m grant to restart the Teesside CO2 plant, aiming to avert Iran-linked shortages affecting food and drink manufacturing.
The government has approved a £100 million grant to restart a mothballed CO2 plant on Teesside, a move designed to head off shortages linked to the Iran war. The plant on Teesside was mothballed last year after a trade deal with the US cut tariffs on bioethanol, its main product.\n\nTrade Secretary Peter Kyle signed off on the grant, with officials saying CO2 is an essential ingredient for many food and drink manufacturers. Restarting the Teesside site would help secure supplies as global CO2 markets tighten amid conflict and supply chain pressures.\n\nIndustry groups welcomed the plan but urged continued vigilance, noting that while the restart provides short-term relief, longer-term resilience will require diversified sources and steady policy support.
