The cost of Liquid Carbon Dioxide in the US is increasing due to tight supply and low availability of the product in the domestic market. Night Shift Brewing, an Everett, Massachusetts-based brewery, has stated that it could be more than a year till they get more Carbon dioxide supply for their brewing operations. ChemAnalyst, in a news last month, explained that some states witnessed a shortage in Carbon Dioxide supply due to apparent contamination in the raw gas. Due to the contamination situation, the carbon dioxide plants operating in purification and liquefication could not fully function. The conditions have worsened for downstream industries, which require carbon dioxide to create or deliver their products to their clients in the US and overseas.

Our source in Night Shift brewery stated, "The supply cut is awful news since Carbon Dioxide is an essential component in beer making, and downstream dry ice is the primary component for home deliveries." They also added that their brewery is just one of the local breweries affected by this supply shortage. Supply chain issues have been affecting various downstream industries in the country for quite a long time.

The reliable source of carbon dioxide for these breweries is now contaminated and is the primary factor for the supply tightness problem. In addition to the contamination issues, the carbon dioxide supplies sourced from ammonia production are also unavailable due to the 60 days of ammonia plant turnaround in the central parts of the US. Historically, any disturbance in ammonia manufacturing units causes a supply disruption of Carbon Dioxide, and CO2 shortages are an annual occurrence usually occurring in the off-season of fertilizer manufacturing.

According to ChemAnalyst, if the contamination issues continue to exist, the rising price trend of Carbon Dioxide will continue due to a high shortage of product in the country. The increased demand from the downstream food and beverages sector owing to the summer season worsens the rising price situation in the American market.