Back in action: CO2 production resumes on Teesside

• Watch Industry Correspondent Rachel Bullock's full report

A Teesside fertiliser plant is back online and in action after its American owners struck a deal with the Government to restart production.

Production at CF Fertilisers had been paused because of the increased cost of the gas needed to run the site. 

• CO2 production to restart immediately at Teesside plant following Government cash

Why is there a shortage in CO2?

CF Industries closed two of its fertiliser plants due to a surge in gas prices.

This surge in cost is the result of depleted stocks following a cold winter last winter, reduced supply from Russia, and increased demand for liquefied natural gas from the Far East.

OGUK, which represents the nation’s offshore oil and gas industry, said wholesale prices for gas have surged 250% since January with a 70% rise since August alone.

Dermot Nolan, a former Ofgem chief executive, has warned that Britain is likely to face high energy prices for the rest of the year.

• Why CO2 shortage is such a threat to food and drink

• Why are gas prices surging and what happens if your energy firm goes bust?