The nation faces a stark shortage of CO2 following the closure of the Todd Energy Kapuni plant. The plant in Taranaki was New Zealand's only local producer of food-grade carbon dioxide since the Marsden Point refinery shut down in early 2022. A statement from Todd Energy announced that the plant closed before Christmas due to safety-related issues and currently has no reopening date.
"It was necessary to shut the plant to enable the issue to be clearly defined and to complete any resulting rectification work. The safe operation of the plant is our priority. Unfortunately, that means the plant is temporarily closed while we work through engineering solutions," said Mark Macfarlane, Todd Energy Chief Executive.
The gas produced at Kapuni is used across domestic, commercial and industrial industries. It is a key ingredient in the production of beer and fizzy drinks. In the form of dry ice, it is a crucial component in the transportation of chilled goods and food packaging. It is also used in hospitals.
Cheese, meat, fish, sparkling beverages, ready-to-eat meals, yoghurt and a few of the many products likely to be impacted.
Industries have heard warnings of a shortage since July last year, and a number of businesses manage supply chain risks for storing reserve CO2. Fonterra, for example, has announced that the closure will not affect its operations as the company has remediation activities already underway.
A similar shortage was seen in the USA last year when Jackson Dome, one of the nation's major suppliers, had contamination issues.
