Thursday 06-04-2023 - 15:53

Air Products has been made aware of some ongoing challenges throughout Europe in the supply chain of CO2.  

European Background

• Primarily caused by planned maintenance stops of CO2 plants in several countries, but also due to unplanned outages and reduced production rates at various sources.
• High Nat Gas pricing , ammonia market demand uncertainty is also a contributing factor.

UK Background

• The UK plant at Wilton is also on reduced production at the current time due to an extended cleaning outage.
• The  plant in Norway that can sometimes supplement shortfalls is currently down, but hopefully due back late April/May.
• As a result supplies to Air Products from our provider have been reduced by approx. 75% for the first week of April.

What we and our Supplier Nippon are doing to mitigate these challenges

• Nippon have negotiated the running of a plant for CO2 only in the Netherlands, however this will result in a much higher surcharge
• Air Products expect to be able to take contracted volumes from 5 April
• Duration of the higher surcharge may extend into other months depending on the operation/plant outages/market dynamics
• The identified solution is contingent on additional costs and hence the increased surcharge rate of £554/T, or 55.4p per KG for the month of April

This means there will be a higher than already informed surcharge for April of 55.4p.