CO2 Supply Disruptions Expected

Link to article close up of turbulent beer bubbles and foam
Share Post

The supply of carbon dioxide (CO2) available for brewing operations has remained tight since the critical shortages that were experienced in the early days of the COVID-19 pandemic in 2020. Many brewers have since experienced supply disruptions during regional shortages.

Current commercial demand of CO2 equals current levels of production, so any disruption in production negatively influences supply. Seasonal maintenance on producers’ equipment typically occurs in the fall. Several major producers of CO2 are scheduled to perform major maintenance operations in the coming months, which could create significant interruptions to the supply of CO2. The southeast U.S. may be hit particularly hard, with major downtime scheduled at two large production facilities in Virginia and Georgia.

Demand for CO2 is projected to grow 2% annually during the next five years. Currently, supply is growing more slowly than demand. New incentives to reduce carbon emissions via sequestration will further impact future availability of commercial beverage-grade CO2.

Brewers are advised to take steps now to mitigate potential current and future disruptions.

On the federal level, the Brewers Association (BA) is taking a two-pronged approach to address issues with CO2 supply. BA Senior Director of Federal Affairs Katie Marisic is working with the CO2 Solutions Coalition, a group of suppliers and end users who are working to educate Congress and the administration about the uses of CO2, to ensure that current producers of CO2 can access available credits and have incentives to continue providing food- and beverage-grade CO2 to end users like breweries and other beverage companies. Marisic is also exploring possible incentives for breweries and other small beverage producers who install and maintain CO2 capture and reuse equipment.

Was this article helpful?
YesNo