The UK Government is providing a £100 million package to temporarily restart a CO2 production plant in Wilton, Teesside.
The three-month restart measure of the Ensus plant comes amid the Iran conflict and difficult market conditions, which have significantly reduced the reliability of CO2 imports and increased gas prices.
CO2 is vital for Britain’s nuclear, packaged meats, fresh food and healthcare sectors – the latest move is expected to help the country maintain critical supply during the disruption.
The Ensus plant ceased production in Autumn 2025 and was set to close permanently, however, the compay agreed to keep it on standby to provide resilience for critical sectors following intervention by the government.
Business Secretary Peter Kyle said: “As a government of action we will always do what’s needed to ensure resilience and protect British businesses from the worst impacts of global uncertainty. That’s why we have been in discussions with Ensus since September to keep this critical plant on standby for situations like this.
“By restarting this plant we’ve acted swiftly to boost the resilience of our supply chains and protect critical UK sectors like food production, water and healthcare, as well as the jobs and communities that depend on these industries.”
The government will continue to monitor market conditions closely and work with industry, including CO2 suppliers, to manage supply.
Ensus Chairman Grant Pearson added the latest support is “excellent news” for the company’s employees and the supply chain.
He said: “It strengthens the broader Teesside manufacturing economy and the UK’s resilience in relation to biogenic CO2 supplies, which are vital to food and drinks companies, as well as being important to hospitals, abattoirs and the nuclear industry.
“When the production plant is in operation the deal will also be very supportive to the UK agricultural and fuel markets including the expansion required in more sustainable aviation and maritime fuels and the future manufacture of more sustainable chemicals.”
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