Business

Beer may get more expensive after closure of Kāpuni CO2 plant

11:26 am on 11 January 2023

Brewers are concerned by the temporary closure of the Kāpuni plant. Photo: Unsplash / Josh Olalde

Beer production could dwindle and prices spike because of the closure of the country's last food grade carbon dioxide plant.

The liquid carbon dioxide plant at Kāpuni in Taranaki has been temporarily shut down because of safety concerns, and no reopening date has been announced.

It had been New Zealand's only domestic producer of food-grade CO2 since the Marsden Point refinery was decommissioned last year.

CO2 is used to carbonate drinks, and is also used in brewery equipment.

Brewers Association executive director Dylan Firth said brewers were quite concerned.

Brewers may have to import carbon at a higher price or invest in gas capturing technology, Firth said.

He was hopeful production of the gas could catch up if the facility was not closed for long.