Beer prices may spike after closure of NZ’s CO2 plant

Fans drink beer during the Fifa World Cup 2022 in Qatar. Photo / Getty Images

Beer production could dwindle and prices spike because of the closure of the country’s last food grade carbon dioxide plant.

The liquid carbon dioxide plant at Kāpuni in Taranaki has been temporarily shut down because of safety concerns, and no reopening date has been announced.

It had been New Zealand’s only domestic producer of food-grade CO2 since the Marsden Point refinery was decommissioned last year.

The Todd Energy site in Taranaki has been New Zealand’s only domestic producer of food-grade CO2 since the Marsden Point refinery was decommissioned last year. Photo / Michael Cunningham

CO2 is used to carbonate drinks, and is also used in brewery equipment.

Brewers Association executive director Dylan Firth said brewers were quite concerned. Brewers may have to import carbon at a higher price or invest in gas capturing technology, Firth said.

He was hopeful production of the gas could catch up if the facility was not closed for long.

- RNZ