The CO2 Supply in North America is Rapidly Deterioratingby Rudy P. SysAdmin at howtofindthemoney
The CO2 supply in North America is rapidly deteriorating. Unless the federal government steps in, carbonated drinks like soda, sparkling water, seltzer, and beer are in danger of supply disruption. As more and more people are spending time indoors with less frequent trips to the grocery store, soda and beer are being bought in bulk. It's beginning to look like carbonated drinks could end up becoming the new toilet paper due to the world's current state of affairs.
CO2 production at ethanol plants, "which produce carbon dioxide as a byproduct from fuel production," is down about 30% and it's only getting worse. "The supply is rapidly deteriorating," says Geoff Cooper, president of the Renewable Fuels Association. Cooper went on to say that we're on the "verge of something fairly disruptive. It's going to be hard to come by." As for when this could end up happening, it's beginning to look like May could be the start of disruption.
Out of the 45 North American ethanol plants that are able to sell carbon dioxide, 34 of them are currently closed. CEO of the Compressed Gas Association Rich Gottwald says, "There will be shortages. The entire food industry understands the challenge now. Everything is so interconnected." Gottwald went on to estimate that the month of May could jump to a 70% decrease, which would be a major blow to the soda and beer production. Bob Pease, Brewers Association CEO, started to take notice last month that the CO2 shortage was going to be big news. "That certainly got our attention. No CO2, no beer, bottom line," says Pease. "This is an issue that has come up really quickly on us. It is the last thing my members need with the collapse of the hospitality industry." If it the federal government doesn't intervene, carbonated beverages will cease to be manufactured.
Darin Ezra, CEO of manufacturer Power Brands, says, "The main ingredient for most beverages in America is in very bad shape." He has been urging clients to fill up on CO2 while they still can to avoid a disruption in service. However, popular sparkling water brand La Croix claim that they are not worried about the shortage at all. Right now, a lot of people are rationing their CO2 supplies to get through this current shortage. For now, federal government intervention and the reopening of plants will be the turning point.
Is North America going to run out of soda and beer? Probably not, but a shortage or a limit on how much one can buy may be implemented if things keep deteriorating. Nobody really ever thought toilet paper and cleaning supplies would become highly sought after products, but here we are. In the meantime, it might be best to grab a case of your favorite beverage just to be sure, while not hoarding it. Forbes was the first to report on the CO2 shortage.
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Created on Apr 18th 2020 18:47. Viewed 219 times.
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