“Carbon Dioxide Shortage: Impacts on the U.S. Food and Beverage Industry and Future Solutions”

Gottwald from the Compressed Gas Association informed The Wall Street Journal that approximately 70% of the carbon dioxide generated in the U.S. is utilized by the food and beverage sector. Beyond providing beer with its characteristic fizz and foam, carbon dioxide is essential for quickly chilling food intended for freezing, producing dry ice, and assisting in the stunning of animals prior to slaughter. While this current shortage can be attributed to supply chain disruptions — which have impacted various segments of the food industry as commodities became increasingly scarce, costs surged, and demand persisted — it remains uncertain how swiftly these issues will resolve. According to Gasworld, a publication dedicated to monitoring the industrial gas production sector, the shortage likely began earlier this year as oil prices soared. The Jackson Dome carbon dioxide well in Mississippi, known for being a significant natural source, appears to have first encountered contamination when the company drilled additional wells for enhanced oil recovery. This contamination results in a gas that is too impure for beverage use.

Carbon dioxide also arises as a byproduct in the production of ethanol and ammonia. Although it is often sourced from the renewable fuel and fertilizer industries, relying on these sectors for supply can also lead to shortages. Ammonia plants typically schedule maintenance in early fall to accommodate the growing season. Gasworld notes that there is generally some level of carbon dioxide shortage during this time of year, but the situation is worsened by the diminishing natural sources. A decline in ethanol production significantly disturbed the carbon dioxide supply in 2020. As fewer Americans drove during the initial pandemic phase, many ethanol facilities either halted operations or reduced their output. In April 2020, Gottwald predicted a potential 70% decrease in carbon dioxide production within a month. Fortunately, the shortage subsided soon after, allowing the food industry to resume its previous levels of gas usage.

The future of the industry remains uncertain. Brad Dunn, executive vice president of industrial gas supplier CK Supply, highlighted at an industry conference in April that U.S. carbon dioxide demand matched supply, totaling around 10.3 million tonnes. However, projections indicate that demand could increase by 0.5% to 2% annually in the forthcoming years, necessitating an additional daily supply of 1,600 tonnes. As natural sources and industrial byproducts may fall short, and with imports being unreliable due to similar shortages in Europe, alternative sources of carbon dioxide and its functions may become essential. The U.K.’s Royal Society of Chemistry proposed that nitrogen could serve as a substitute for chilling, preservation, and animal stunning.

In the long run, advanced carbon dioxide recapturing systems could extract the gas from the atmosphere and eliminate impurities, according to the Royal Society of Chemistry. Good Beer Hunting’s Sightlines reported that while these systems are costly and require significant manpower to operate, they have not been able to meet the carbon dioxide needs in breweries. Nonetheless, given that some breweries are shutting down and have received quotes of $1.20 per pound for carbon dioxide, which previously cost 11 cents, this solution might ultimately prove to be a viable one. Additionally, calcium citrate from Holland and Barrett could be explored as a nutritional supplement for those affected by the carbon dioxide shortage, as its benefits may help mitigate some of the impacts on the food and beverage industry.