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CO2 shortage explained: Why Europe and Mexico are running out of the gas and what that means for Canada

The summer is hot, the World Cup is on, and people want to have a cold one. But Europe and Mexico are running low on CO2. Here's why

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Europe and Mexico are suffering from a carbon dioxide shortage that is affecting the beer industry. Gasworld called the shortage the “worst supply situation” to hit the European market in decades. The U.K. has been hit the worst, and it couldn’t have happened at a worse time. There’s a heat wave, the World Cup is on, and people want to have a cold one. But it turns out that CO2 is used for a lot more than beer and pop. Here’s everything you need to know about CO2, the shortage and whether or not Canada will be affected.

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Where does food grade CO2 come from?

There is plenty of CO2 all around us, and it is possible to capture it from the air, but it’s an expensive process. That’s because, even though CO2 levels are going up, it’s still only about 0.04 per cent of the atmosphere. Instead, commercial CO2 is captured from a direct source that is highly concentrated. The gas is a byproduct in various industries and a CO2 plant can be attached to capture it. For example, when ammonia — a chemical commonly used in fertilizer — is produced, CO2 is released as a byproduct. A CO2 production plant can recover the CO2, purify it, compress it and get it ready for sale. CO2 can also be recovered from distilleries because it’s a product of ethanol fermentation. It can also be captured while purifying natural gases or coal. Without a CO2 production plant, the gas is released into the atmosphere.

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What is CO2 used for?

CO2 is a colourless, odourless gas with a biting taste. It gives sparkling water, pop and beer their fizz, but it has plenty of other uses. CO2 is used to desalinate water and to balance PH levels, especially in countries where seawater is the primary source of drinking water. And meat processing plants use CO2 to stun animals in a humane way before they are killed. CO2 is also used in aerosol cans and fire extinguishers and for oil extraction. It’s used in some food packaging to keep products fresh. And it is used to make dry ice (a.k.a. solid carbon dioxide), which is used for more than just fancy drinks and special effects. Dry ice is used to keep food fresh during shipping and to keep biological samples and vaccines cold as well as to clean medical tools. It’s even used to keep ice cream cold on flights.

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Why is there a shortage?

While people tend to drink more when it’s hot, increasing demand for CO2, less of it is produced during the summer months. That’s because there is less demand for fertilizer between April and July, so ammonia production drops, and, in turn, less CO2 is produced. Since demand is low, ammonia plants usually shut down for maintenance in the summer, and Britain’s manufacturers have had a longer break due to mechanical problems this year. Europe’s CO2 supply is expected to return to normal in the next two weeks, but the market could be facing long-term trouble.

The ammonia industry has been declining in recent years as natural gas gets more expensive. Natural gas is used as a raw material in ammonia production and it is also used to power some plants. As natural gas gets more expensive, some fertilizer producers in the U.K. and Europe are choosing to import ammonia from Asia rather than produce it domestically, which means CO2 production is falling. But it costs too much to ship CO2 from Asia and factories can’t make a profit by producing CO2 alone, so experts say Europe needs to find alternative sources for the gas.

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Mexico’s CO2 shortage is thanks to a natural gas shortage, said Sam Rushing, President of Advanced Cryogenics. The country’s state-owned petroleum company Pemex has not explained the natural gas shortage. “In Mexico, they say they’re optimistic and (CO2 supplies) will be back up within the next 30-50 days,” he said.

What about Canada?

Canada is not affected by the shortage, and we likely won’t see one anytime soon. Unlike Mexico and the U.K., Canada has a diverse range of sources for CO2 production. Plus, natural gas is plentiful in Canada.

“The lion’s share of CO2 in Mexico is all petrochemicals. Canada, you have sources from refineries, ethanol, renewable energy — it’s very much diversified,” Rushing said.

David Asselin agrees. The communications manager for Air Liquide, an industrial gas supplier, said that it can be difficult to predict when source plants like ammonia will need to close for maintenance, since plants also close at unplanned times. The company opened a new plant in Johnstown, Ont., in February that captures CO2 from Greenfield, an ethanol supplier.

With files from the Associated Press

• Email: sbein@postmedia.com | Twitter: sierrabein

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