Wet weather moves on so is summer finally on the way? Kiwi-made booster edges closer to human trials and just how much more manufacturers are paying for in-demand carbon dioxide in the latest New Zealand Herald headlines. Video / NZ Herald
A New Zealand-based beverage manufacturer says another price increase for carbon dioxide was passed through this week, to a cost about 17 times higher than April last year.
The manufacturer who asked not to be identified nor dollar values of prices shared for commercial sensitivity reasons, told the Herald itwas willing to pay the higher price, but it couldn’t access the crucial carbonating component locally.
That’s because its local supplier pulled its CO2 allocation for this month late last year amid a nationwide shortage, instead sending the gas to medical facilities where it’s required for procedures such as organ transplants and embryo freezing.
The manufacturer’s gas supply contract stated medical demands must be met first, so the manufacturer was scrambling to import CO2 from Singapore, which could take up to six weeks.
They said the price increases, which would eventually be passed on to the consumer, began following the closure of the Marsden Point Oil Refinery, to become a storage-only facility. CO2 gas is produced and captured during refining processes.
Since Marsden Point ceased refining, Todd Energy’s Kapuni plant in Taranaki has been the only domestic producer of food-grade CO2. It has been shut down temporarily due to safety concerns.
The decommissioning of the Marsden Point refinery, south of Whangārei, left Kapuni as the sole domestic liquid CO2 supplier. Photo / Michael Cunningham
They said the Government did not understand the risk of a CO2 shortage when it allowed Marsden Point to close.
“The Government’s gone on about climate change - now we’re importing CO2 at jurassic amounts.”
Carbon dioxide was used in food production too. Dairy product manufacturer Fonterra said it used CO2 in its manufacturing operations and packaging processes.
However, Fonterra’s New Zealand manufacturing director Alan Van Der Nagel said its ability to process milk had not been impacted.
“We’re working with all relevant parties on remediation activities,” he said in a written statement.
Meat Industry Association chief executive Sirma Karapeeva said meat processors were not heavy users of CO2.
“Those that do use some, they have alternative suppliers, so the shutdown of the plant is unlikely to be a significant problem for them.
