LONDON – Industry analysts are warning that the United Kingdom’s carbon dioxide (CO2) supply chain may be far less secure than many businesses believe, as rising energy costs and complex production networks place increasing strain on the market.
A significant proportion of the CO2 used across the food, beverage, packaging, and manufacturing sectors is not produced independently, but instead captured as a by‑product from other industrial operations. Ammonia plants remain the most common source, though CO2 is also generated through a mix of industrial and renewable processes.
Despite this variety, all sources share one critical dependency: energy.
Capturing, purifying, and liquefying CO2 is an energy‑intensive process
With the UK experiencing sustained increases in the cost of electricity, natural gas, diesel, and other oil‑linked inputs, CO2 producers are facing mounting operational pressures. Industry observers note that when energy prices spike, production can quickly become uneconomical – causing plant slowdowns or shutdowns that rapidly tighten the supply of CO2. The sector has witnessed similar disruptions in recent years, leading to shortages across multiple industries.
Beyond the energy issue, supply chain complexity adds another layer of vulnerability. Much of the UK’s CO2 does not move directly from producer to end user; instead, it passes through a network of third‑party processors, distributors, and intermediaries. Each additional step introduces cost, logistical challenges, and exposure to disruption.
Analysts say the combination of volatile energy markets, reliance on third‑party production, and intricate distribution routes creates a market more fragile than many buyers realise.
Our vertically integrated model
One company positioning itself differently is Pretoria Energy, which argues that a vertically integrated model offers greater security. The firm produces its own renewable energy on site, reducing dependence on external energy markets and insulating operations from price shocks. Crucially, Pretoria owns and manages the entire CO2 production and distribution process.
“We’re not a middleman,” the company states. “We’re not reliant on third‑party production or multiple links in the supply chain. From energy generation to final CO2 delivery, we control the full process.”
Pretoria says this structure helps mitigate many of the risks affecting the wider market and provides businesses with a more reliable supply option as energy volatility persists.
With energy prices expected to remain unpredictable over the coming years, industry experts anticipate that supply resilience will become an increasingly important factor for CO2 buyers. As a result, companies are being encouraged to scrutinise their sourcing arrangements more closely.
The key question, suppliers say, is becoming ever more pressing: Where does your CO2 actually come from?
Pretoria Energy has invited businesses to discuss how its model may support more stable long‑term supply.