Polish chemical firm Grupa Azoty's ATTP.WA Pulawy ZAPP.WA unit is producing carbon dioxide at less than a third of nominal capacity as high natural gas prices hit profitability, a group spokesperson told Reuters on Friday.
Carbon dioxide (CO2) is a byproduct of ammonia output, and soaring gas prices are making profitable production of ammonia and nitrogen fertilisers impossible, she said.
The company said on Tuesday that due to higher gas prices Pulawy was cutting ammonia production to about 10% of capacity, and temporarily halting output of nitrogen fertilisers and some other products.
"At Grupa Azoty Pulawy 30% of nominal CO2 production volume is being maintained," the spokesperson added in an e-mail on Friday.
A CO2 shortage is already putting pressure on some European countries' food sectors. The food industry uses carbon dioxide for, among other things, cooling products during transportation, stunning poultry and pigs before slaughter, and putting fizz in drinks.
On Thursday Danish brewery Carlsberg's Polish unit said it might have to stop production due to a shortage of CO2 supplies, which could also hit the wider food industry in Poland.
Morawiecki and Macron to discuss CO2 allowances
Polish Prime Minister Mateusz Morawiecki will propose freezing the price of the European Union's carbon emissions permits during his visit to France next week.
"The war in Ukraine is destabilising Europe, I want to propose to President Macron to bring the price of carbon emissions to 25-30 euros per tonne, an acceptable level," Morawiecki told public television late on Thursday. Read full story
European CO2 allowances for December 2022 expiry CFI2Zc1 closed at 88.50 euros a tonne.
Morawiecki also said Poland was working on a package of support for energy intensive companies to mitigate the effect of soaring energy prices on its industry.
Źródło: TVN24 News in English, Reuters
Źródło zdjęcia głównego: grupaazoty.com