Carbon dioxide (CO₂) has a marketing problem. Everyone knows we have too much of it in the atmosphere but it also has a number of uses in everyday society. Currently the US Southeast is readying to cope with or already in the throes of an acute CO₂ shortage, exacerbated by the temporary shutdown of a plant critical to the CO₂ supply in the region. The Hopewell plant in Virginia is scheduled to undergo maintenance from late September, potentially causing a massive impact on CO₂ supply for up to eight weeks.

The shortage has far-reaching implications: disrupting supply chains, increasing product costs, and threatening the viability of several essential services. This comes at a time when the world is facing unprecedented shortages of CO₂ - a critical resource for various industries ranging from food and beverage to healthcare and manufacturing. 

Understanding the CO₂ Supply Shortage

At its core, the shortage of CO₂ is a result of an acute mismatch between supply and demand, worsened by “incidents” like maintenance shutdowns, contaminants in raw gas, gas price spikes and supply chain disruptions caused during the pandemic which haven’t been resuscitated and so on. It’s also important to remember that most of the CO₂ bought and sold on the market is a byproduct of other processes and industries, namely ethanol and ammonia production, oil refineries and geological sources. Together these make up the four primary sources that are certified by the US Environmental Protection Agency (EPA).

Regional Perspectives - USA
The scheduled shutdown of the Hopewell plant in Virginia is set to impact three of the largest CO₂ providers in the United States: Linde, Air Liquide and Messer, potentially tightening supply by 3.5% of the US’s CO₂ demand, and comes at a time when CO₂ supply is highly unstable, resulting in a potential domino effect and impact on cost and availability. This is not the first time we’ve seen the impact of a CO₂ shortage. Earlier this year, Australia and New Zealand were impacted hugely by CO₂ shortages, with consumers unable to buy certain beverages and food goods for weeks on end. In New Zealand, the shortage was due to the shutdown of the Todd Energy Kapuni plant, which suffered an ammonia leak, and impacted CO₂ supply to the country, alongside the Marsden Point oil refinery where CO₂ was captured as a byproduct.   

In the United States, supply chain challenges have exacerbated the issues , with ethanol production—responsible for a large share of the country’s CO2 supply—struggling to keep up with demand. The result is a cascade of effects: breweries facing difficulties carbonating beverages, growers struggling with consistency of supply and unstable pricing, food producers struggling with preservation, and even hospitals facing challenges in sourcing CO₂ for medical procedures. Sliding in a mention of controlled environment agriculture, especially vertical farms and high-tech greenhouses, reliant on CO₂ dosing for improved quality and crop production, who suffer significantly given the smaller the CO₂ requirement, the higher the procurement cost. 

Regional Perspectives - UK

The UK has faced significant challenges with CO₂ shortages, primarily due to disruptions in the domestic production of ammonia, stemming from high natural gas prices, as these plants are major consumers of gas. The domestic production of CO2 has been highly affected, with various reports suggesting 40%–60% reduction in availability, and a corresponding 300% increase in pricing when compared to pre-pandemic levels. Such dramatic increases in costs are heavily impacting industries dependent on CO₂, like food preservation, beverage carbonation, and even healthcare.

Regional Perspectives - EU

In Europe, a combination of high natural gas prices, regional conflict and plant shutdowns for maintenance have led to a sharp decline in CO₂ production. There are notable ripple effects on various sectors, particularly in agriculture. These concurring disruptions have created gas shortages hitting industries relying on stable CO₂ supplies, particularly food, beverage, and healthcare. 

Lessons from previous shortages haven’t been learnt. Around this time in 2022, Nestle-owned San Pellegrino halted production at its Bergamo plant in Italy through the warmer summer months. Similarly, water suppliers and breweries in Poland, and Germany have been facing similar cuts; with some focusing on imports to keep production stable, while others de-prioritizing less profitable products to continue supporting and producing others.

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The Role of Direct Air Capture in Addressing CO₂ Shortages

DAC is an emerging technology that offers a solution to the CO₂ supply issue. Unlike traditional methods that rely on industrial byproducts and amplify emissions, DAC captures CO₂ directly from ambient air. This process involves using large fans to pull in air, which then passes through a filter that traps the CO₂. The captured CO₂ can either be stored securely underground or utilized in various industrial applications.

The potential of DAC is twofold: it not only provides a reliable source of CO₂, independent of existing industrial processes, but it also helps mitigate climate change by reducing the amount of CO₂ in the atmosphere. This dual benefit makes DAC an attractive option for industries currently grappling with CO₂ shortages.

Advantages of Direct Air Capture

1. Cost Efficiency and stability: Those with CO₂ needs are empowered to manage their CO₂ production by generating it themselves, at the location where that CO₂ is needed, fixing the costs of CO₂ for the long term
2. Environmental Impact: Traditional CO₂ production methods contribute to greenhouse gas emissions, exacerbating climate change. In contrast, DAC not only produces CO₂ for industrial utilization but also removes it from the atmosphere, aligning with global climate goals. This could be particularly valuable in industries that are under pressure to reduce their carbon footprint.
3. Versatility: The CO₂ captured by DAC can be used in various ways, from carbonating beverages and preserving food to creating synthetic fuels and materials. Through continued innovation and development, DAC can become more efficient and meet increased requirements. This versatility makes DAC a key player in the emerging carbon economy, where CO₂ is seen not just as a waste product polluting our atmosphere, but as a valuable resource.

Conclusion: A Future with Direct Air Capture

The current CO₂ supply shortage is a reminder of the reliance of our systems on legacy practices and the need for innovative solutions. Direct Air Capture offers a promising pathway to not only alleviate these shortages but also contribute to the fight against climate change. By investing in and adopting DAC technology, industries can secure a reliable supply of CO₂ while decarbonizing their operations. As the world continues to grapple with environmental and economic challenges, DAC could be a key piece of the puzzle in building a resilient and carbon-neutral economy.

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