CO2 Shortage In Australia And New Zealand Reveals Critical Supply Issues

CO2 Shortage In Australia And New Zealand Reveals Critical Supply Issues - Carbon Herald
Credit: Martijn Baudoin | Unsplash

Another CO2 shortage crisis has overwhelmed the soft drinks market, this time in Australian and New Zealand. Pictures of empty shelves in supermarkets all over these countries are circulating the news as the local beverages market is experiencing a shortage of CO2 impacting the countries’ supply chains.

“This is due to supply interruptions from several local CO2 sources and issues impacting international freight for imported CO2 products,” commented gas supplier BOC for ABC News.

More reasons for the CO2 shortage are inflation, environmental compliance, and geopolitics, according to the Australia New Zealand Industrial Gas Association. The fizzy drinks market is also facing competition from emerging CO2 applications like the production of sustainable fuels and CO2 utilization in concrete. Some applications that are not impacted are for critical medical, safety and water treatments.

Relevant: UK Food And Drinks Market Threatened By Shortage Of CO2 Supply

In New Zealand, what adds to the shortage crisis are the closures of the Todd Energy Kapuni plant – a CO2 food-grade plant, back in December 2023 due to an ammonia leak, and the closure in 2022 of the Marsden Point oil refinery – where CO2 was produced and captured as a byproduct.

At a recent gasworld European CO2 Summit 2024 in Austria, industry experts also discussed other supply forces affecting the situation, i.e. suppliers moving out of Western Europe and North America to lower-cost energy environments, and carbon capture and sequestration. These developments are signalling major upcoming changes in the CO2 demand/ supply environment and more potential disruptions as new markets will continue to rapidly scale, competing for the resource.

Relevant: Algae Carbon Capture Technology Might Solve Beer Shortage

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