UK advances energy and CO2 measures amid global supply disruptions

UK advances energy and CO2 measures amid global supply disruptions

UK: The UK government is assessing measures to address energy supply risks following disruption to global markets linked to conflict involving Iran and the closure of the Strait of Hormuz, a key route for oil and gas trade. Prime Minister Keir Starmer stated that there may not be a "quick and early end" to the situation and confirmed that the government would examine "every lever that's available" to support households facing rising energy costs. The government is considering targeted financial support ahead of the summer price cap expiry and has ruled out a repeat of the GBP 40 billion (approximately USD 53 billion) broad support package implemented during the Ukraine crisis. It is also reviewing proposals to grant additional powers to the Competition and Markets Authority to address "price gouging or profiteering" under current market conditions.

The government has also announced plans to invest GBP 100 million (approximately USD 133 million) to reopen the Ensus carbon dioxide facility in Teesside, which ceased operations in 2025. CO2 is used across sectors including food processing, water treatment and nuclear operations. Business Secretary Peter Kyle said the investment will "boost the resilience of our supply chains and protect critical UK sectors like food production, water and healthcare". Grant Pearson of Ensus UK stated that the move "strengthens the broader Teesside manufacturing economy and the UK's resilience in relation to biogenic CO2 supplies". The measure aims to mitigate supply risks linked to energy costs affecting European fertiliser production, where CO2 is generated as a by-product.

Source: Procurement mag