German Breweries Cut Production Over CO2 Shortage Caused By Rising Gas Prices - Reports

MOSCOW (Pakistan Point News / Sputnik - 17th September, 2022) German beverage producers and breweries are cutting production due to a shortage of carbon dioxide (CO2), provoked by rising gas prices, the Financial Times reported on Friday

The lack of CO2, a byproduct of ammonia production, is caused by the reduction of fertilizer production due to rising gas prices, the newspaper said, adding that the price per tonne of CO2 rose from $100 to $3,500 over the year.

The brewers' association, together with organizations representing juice and mineral water producers, reportedly urged the German government to provide support in the face of possible bankruptcy of the whole industry and its workers.

Since 2021, energy prices in Europe have been rising rapidly following a global trend. After Russia launched a military operation in Ukraine and Brussels imposed several sanctions packages against Moscow, the energy situation deteriorated considerably, prompting European countries to search alternatives to Russian gas and oil supplies.