CO2 Supply Disruptions Expected

The supply of carbon dioxide (CO₂) available for brewing operations has remained tight since the critical shortages that were experienced in the early days of the COVID-19 pandemic in 2020. Many brewers have since experienced supply disruptions during regional shortages.

Current commercial demand of CO₂ equals current levels of production, so any disruption in production negatively influences supply. Seasonal maintenance on producers' equipment typically occurs in the fall. Several major producers of CO₂ are scheduled to perform major maintenance operations in the coming months, which could create significant interruptions to the supply of CO₂. The southeast U.S. may be hit particularly hard, with major downtime scheduled at two large production facilities in Virginia and Georgia.

Demand for CO₂ is projected to grow 2% annually during the next five years. Currently, supply is growing more slowly than demand. New incentives to reduce carbon emissions via sequestration will further impact future availability of commercial beverage-grade CO₂.

Brewers are advised to take steps now to mitigate potential current and future disruptions.

On the federal level, the Brewers Association (BA) is taking a two-pronged approach to address issues with CO₂ supply. BA Senior Director of Federal Affairs Katie Marisic is working with the CO₂ Solutions Coalition, a group of suppliers and end users who are working to educate Congress and the administration about the uses of CO₂, to ensure that current producers of CO₂ can access available credits and have incentives to continue providing food- and beverage-grade CO₂ to end users like breweries and other beverage companies. Marisic is also exploring possible incentives for breweries and other small beverage producers who install and maintain CO₂ capture and reuse equipment.