CF Fertilisers produces ammonium nitrate fertiliser and nitric acid in the United Kingdom at Billingham. As a result of high gas prices the company has temporarily decided to import ammonia from overseas, rather than producing it on-site. The company expects to fulfil all ammonia and nitric acid contracts and all orders of Ammonium Nitrate contracted for delivery in the coming months. The supply and price of these products is a commercial matter for CF Fertilisers, and we expect supply to continue.

While global fertiliser prices have risen, the supply chain providing imports of fertiliser to the UK has remained dynamic. We are continuing to monitor the security and stability of fertiliser and other supply chains and work closely with colleagues across HM Government and devolved administrations as well as industry figures.

It is disappointing that CF Fertilisers has taken the decision to halt ammonia production at Billingham. However, since last autumn the CO2 market’s resilience has improved, with additional imports, further production from existing sources such as anaerobic digestion and bioethanol, and better stockpiles. We expect the supply of ammonia (from imports by CF Fertilisers), nitric acid and fertiliser to the UK market to be unaffected. While the Government continues to examine options for the market to improve resilience over the longer term, we urge industry to do anything it can to meet demand, which is in the best interest of businesses and the public.

National Fertiliser Supplies

CF Fertilisers produces ammonium nitrate fertiliser and nitric acid in the UK at Billingham. The Company expects to fulfil all ammonia and nitric acid contracts and all orders of Ammonium Nitrate contracted for delivery in the coming months. The supply and price of these products is a commercial matter for CF Fertilisers and we expect supply to continue.

Food Security

The UK has a highly resilient food supply chain, as demonstrated throughout the COVID-19 response. It is well equipped to deal with situations with the potential to cause disruption. Our high degree of food security is built on supply from diverse sources; strong domestic production as well as imports through stable trade routes. We produce 61% of all the food we need, and 74% of food which we can grow or rear in the UK for all or part of the year, and these figures have changed little over the last 20 years.

Defra has well established ways of working with the industry and across Government to monitor risks that may arise. This includes extensive, regular and ongoing engagement in preparedness for, and response to, issues with the potential to cause disruption to food supply chains.

Carbon Dioxide Supplies

The resilience of the UK’s CO2 supply has improved since last autumn and Defra do not expect any significant disruption to essential food supplies, such as meat production. We are in regular contact with representatives from the farming, food and drink sectors to help manage the situation. We will monitor the situation carefully and we are working with the meat industry to ensure that supplies of CO2 to the pig and poultry processing sector are maintained.

Defra is working with sector stakeholders to encourage contingency planning and resilience and understand that various CO2 supply companies in the UK are working on or have secured additional CO2 to mitigate shortages. We are confident CO2 stocks are secure for the coming winter. Since last autumn, the market’s resilience has improved, with additional imports, further production from existing domestic sources and better stockpiles.

It is disappointing that CF Fertilisers has taken the decision to halt ammonia production at Billingham. However, since last autumn the CO2 market’s resilience has improved, with additional imports, further production from existing sources such as anaerobic digestion and bioethanol, and better stockpiles. We expect the supply of ammonia (from imports by CF Fertilisers), nitric acid and fertiliser to the UK market to be unaffected. While the Government continues to examine options for the market to improve resilience over the longer term, we urge industry to do anything it can to meet demand, which is in the best interest of businesses and the public.

National Fertiliser Supplies

CF Fertilisers produces ammonium nitrate fertiliser and nitric acid in the UK at Billingham. The Company expects to fulfil all ammonia and nitric acid contracts and all orders of Ammonium Nitrate contracted for delivery in the coming months. The supply and price of these products is a commercial matter for CF Fertilisers and we expect supply to continue.

Food Security

The UK has a highly resilient food supply chain, as demonstrated throughout the COVID-19 response. It is well equipped to deal with situations with the potential to cause disruption. Our high degree of food security is built on supply from diverse sources; strong domestic production as well as imports through stable trade routes. We produce 61% of all the food we need, and 74% of food which we can grow or rear in the UK for all or part of the year, and these figures have changed little over the last 20 years.

Defra has well established ways of working with the industry and across Government to monitor risks that may arise. This includes extensive, regular and ongoing engagement in preparedness for, and response to, issues with the potential to cause disruption to food supply chains.

Carbon Dioxide Supplies

The resilience of the UK’s CO2 supply has improved since last autumn and Defra do not expect any significant disruption to essential food supplies, such as meat production. We are in regular contact with representatives from the farming, food and drink sectors to help manage the situation. We will monitor the situation carefully and we are working with the meat industry to ensure that supplies of CO2 to the pig and poultry processing sector are maintained.

Defra is working with sector stakeholders to encourage contingency planning and resilience and understand that various CO2 supply companies in the UK are working on or have secured additional CO2 to mitigate shortages. We are confident CO2 stocks are secure for the coming winter. Since last autumn, the market’s resilience has improved, with additional imports, further production from existing domestic sources and better stockpiles.

An industry agreement reached in October ensured that CF Fertilisers on Teesside could continue to operate for 3 months. This market-led agreement was renewed in January 2022 and continue a the current time, even with high global gas prices.

The Government welcomes industry’s agreement which is in the best interests of businesses.

The continued operations at Billingham, and any decision to restart operations at Ince, remains a commercial matter for the company. In the longer term, the Government would like to see the market take measures to improve resilience, and we are engaging on ways this could happen. We would encourage industry, where possible, to pay a price necessary to continue to secure the supply of these critical chemicals and to continue to build their resilience plans.

We have received no representations about Billingham since it was included in the Access for All programme. Although the deadline for completing Access for All projects is 2024, Billingham is due to finish in 2022. Development and design work are well advanced and construction is due to start early next year.

The hon. Gentleman will have to forgive me, but my memory for statements that were given in 1985 is a little bit rusty. That was seven years before even I was first elected to this House. I will look into the point that he has raised and write to him to set out the position.

Q7

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Alex Cunningham (Stockton North) (Lab):

On 25 January 1985, the Conservative Government promised that no nuclear waste would be dumped in the Billingham anhydrite mine. Will the right hon. Gentleman confirmed that that promise still stands?