CO<SUB>2</SUB> Surcharge

The Carbon Dioxide (CO2) Environment & Energy Surcharge (EES)

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The majority of CO2 in the UK is generated as a co-product from using natural gas as a feedstock to produce ammonia. Due to unprecedented increases in the cost of natural gas and electricity, the cost of CO2 to BOC has increased substantially.

In order to recover some of the increased cost it has unfortunately been necessary to introduce a surcharge on bulk, Cryospeed and cylinders products containing carbon dioxide and other gases. For bulk and Cryospeed this will be the only surcharge that applies. For cylinders the surcharge will be in addition to any previous surcharges. In all cases it will appear under "Environment and Energy Surcharge" on your BOC invoice.

BOC is doing everything within its control to manage the situation and are making every effort to prevent any disruption to supplies. We endeavour to minimise the impact of cost increases to our customers and the situation is being reviewed regularly.

Quick links:
Customer Q&A
Latest Charges Q&A
Bulk & Cryospeed Customer Q&A
Healthcare Customer Q&A

BOC truck


Customer Q&A

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On the 25th July 2023 CF Fertilisers announced a proposal to permanently close the ammonia plant at their Billingham Complex and continue to import ammonia to the site. The announcement cites “The company intends to continue to produce ammonium nitrate fertiliser and nitric acid at the Billingham site using imported ammonia, as it has for the last 10 months following its decision to temporarily idle the plant in August 2022.” Natural gas is used as the feedstock to produce ammonia from where CO2 is generated as a co-product. By continuing to import ammonia, the production of CO2 at the site will cease permanently.

With the Billingham Plant having been a considerable source of CO2 for BOC and the broader UK and Ireland market, the impact of the Billingham Plant stopping production permanently is significant. BOC has taken steps to secure alternative supplies of CO2 that includes increasing imports by road from Europe and have secured additional supplies from alternative ammonia and non-ammonia-based sources. Unfortunately, the cost of the alternative CO2 is significantly higher and so it is necessary to apply a temporary surcharge.

Read the full announcement CF Fertilisers UK announces proposal to permanently close ammonia plant at Billingham complex.

Previous announcements regarding CF Fertilisers UK and the production of CO2

CF Fertilisers UK announces intention to temporarily halt ammonia production at Billingham.

CF Fertilisers UK announce proposals to restructure operations.

The price BOC pays for the wholesale purchase of CO2 from its sources is both unprecedented and significant. To maintain customer supplies it has therefore been necessary to apply the temporary surcharge.

In response to CF Fertilisers announcing it will permanently cease production at their Billingham Plant, BOC has taken steps to secure alternative supplies of CO2 that includes increasing imports by road from Europe and have secured additional supplies from alternative ammonia and non-ammonia-based sources. Unfortunately, the cost of the alternative CO2 is significantly higher and so it is necessary to apply a temporary surcharge.

The price reflects the extra cost of energy and particularly natural gas and electricity in the cost of producing CO2. In addition to these is the significant cost to import CO2 by road transportation from multiple European locations. BOC always endeavours to minimise the impact of cost increases to our customers and commits to reviewing the situation regularly.

The surcharge is calculated based on a set of variables that BOC has limited or no influence over. These variables include natural gas costs, electricity costs, carbon taxes and other factors that take into account BOC's sourcing policy.

The surcharge will appear as "Environment and Energy Surcharge" on your invoice. This element is variable and can change with variances in BOCs costs.

The surcharge is calculated based on a set of variables that BOC has limited or no influence over. These variables include natural gas costs, electricity costs, carbon taxes and other factors that take into account BOCs CO2 sourcing policy. Whilst natural gas pricing has the most significant influence on the surcharge it is not the only factor that impacts the rate. Additional inputs include electricity costs, carbon taxes and other factors. All factors will be reviewed, and the surcharge rate will be increased or decreased accordingly.

When you order cylinder gases online the exact surcharge amount for the items in your shopping cart will be shown under "Environment and Energy Surcharge" before you place your order.

BOC is unable to predict how long the surcharge will be required to apply to the supply of CO2 as it is calculated based on a set of variables that BOC has limited or no influence over. These variables include natural gas costs, electricity costs, carbon taxes and other factors that take into account BOCs CO2 sourcing policy. Whilst natural gas pricing has the most significant influence on the surcharge it is not the only factor that impacts the rate. Additional inputs include electricity costs, carbon taxes and other factors. All factors will be reviewed regularly, and the surcharge rate will be increased or decreased accordingly.

This will depend on the supply mode through which you purchase CO2 from BOC (bulk, Cryospeed, cylinders or dry Ice). All changes to the surcharge rate for all modes of supply will be updated on this web page. You may also receive a letter or an email advising you of any changes.

This will depend on the supply mode through which you purchase CO2 from BOC (bulk, Cryospeed, cylinders or dry Ice). All changes to the surcharge rate for all modes of supply will be updated on this web page. You may also receive a letter or an email advising you of any changes.

The ammonia plant at Billingham on Teesside, owned and operated by CF Fertilisers, was the largest producer of CO2 in the UK and is integral to the supply of CO2 across the UK and Ireland. On the 25th July 2023, CF Fertilisers UK announced a proposal to permanently close the ammonia plant at their Billingham Complex and continue to import ammonia to the site. The announcement cites “The company intends to continue to produce ammonium nitrate fertiliser and nitric acid at the Billingham site using imported ammonia, as it has for the last 10 months following its decision to temporarily idle the plant in August 2022.” Natural gas is used as the feedstock to produce ammonia from where CO2 is generated as a co-product. By continuing to import ammonia, the production of CO2 at the site will cease permanently.

Read the full announcement CF Fertilisers UK announces intention to temporarily halt ammonia production at Billingham.


Bulk & Cryospeed Customer Q&A

`

On the 25th July 2023 CF Fertilisers announced a proposal to permanently close the ammonia plant at their Billingham Complex and continue to import ammonia to the site. The announcement cites “The company intends to continue to produce ammonium nitrate fertiliser and nitric acid at the Billingham site using imported ammonia, as it has for the last 10 months following its decision to temporarily idle the plant in August 2022.” Natural gas is used as the feedstock to produce ammonia from where CO2 is generated as a co-product. By continuing to import ammonia, the production of CO2 at the site will cease permanently.

With the Billingham Plant having been a considerable source of CO2 for BOC and the broader UK and Ireland market, the impact of the Billingham Plant stopping production permanently is significant. BOC has taken steps to secure alternative supplies of CO2 that includes increasing imports by road from Europe and have secured additional supplies from alternative ammonia and non-ammonia-based sources. Unfortunately, the cost of the alternative CO2 is significantly higher and so it is necessary to apply a temporary surcharge.

Read the full announcement CF Fertilisers UK announces proposal to permanently close ammonia plant at Billingham complex.

Previous announcements regarding CF Fertilisers UK and the production of CO2

CF Fertilisers UK announces intention to temporarily halt ammonia production at Billingham.

CF Fertilisers UK announce proposals to restructure operations.

To maintain customer supplies it is necessary to apply a temporary surcharge of €330 per tonne to all deliveries of bulk and Cryospeed CO2 from 15th April 2024. Please be aware that this surcharge will not cover all the the extra costs BOC is incurring during this unprecedented situation and it will be reviewed regularly.

To maintain customer supplies it is necessary to to apply a temporary surcharge of €330 per tonne to all deliveries of Sureserve dewar CO2 from 15th April 2024. Please be aware that this surcharge does not cover all the extra costs BOC is incurring during this unprecedented situation and will continue to be reviewed regularly and adjusted accordingly.

The surcharge replaces any previous surcharges and will appear under "Environment and Energy Surcharge" on your invoice.

This surcharge replaces any previous surcharges that applied to the supply of bulk and Cryospeed CO2.


Healthcare Customer Q&A

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Nitrous oxide production is directly linked to the price of natural gas and the exceptional rise in natural gas prices has been significant. In order to ensure the continued supply of nitrous oxide and ENTONOX to the Healthcare industry and to cover a proportion of these costs BOC requires an additional surcharge on supplies of these gases.

For all cylinders it is the weight of N2O in each cylinder multiplied by the new additional costs. As of October 20th 2021, the implementation date, this equates to €0.49 per kg of N2O.


Have some questions?

New to BOC? Register online if you or your organisation doesn’t have an existing BOC account.

As an existing BOC customer who has never used the BOC Online Shop, you can simply activate your online account.

Not sure where your closest Gas & Gear store is? Use our store finder.

Have some questions? Why not visit our help & support page for frequently asked delivery questions.

The Carbon Dioxide (CO2) Environment & Energy Surcharge (EES)

`

The majority of CO2 in the UK is generated as a co-product from using natural gas as a feedstock to produce ammonia. Due to unprecedented increases in the cost of natural gas and electricity, the cost of CO2 to BOC has increased substantially.

In order to recover some of the increased cost it has unfortunately been necessary to introduce a surcharge on bulk, Cryospeed and cylinders products containing carbon dioxide and other gases. For bulk and Cryospeed this will be the only surcharge that applies. For cylinders the surcharge will be in addition to any previous surcharges. In all cases it will appear under "Environment and Energy Surcharge" on your BOC invoice.

BOC is doing everything within its control to manage the situation and are making every effort to prevent any disruption to supplies. We endeavour to minimise the impact of cost increases to our customers and the situation is being reviewed regularly.

BOC truck

Customer Q&A

`

On the 25th July 2023 CF Fertilisers announced a proposal to permanently close the ammonia plant at their Billingham Complex and continue to import ammonia to the site. The announcement cites “The company intends to continue to produce ammonium nitrate fertiliser and nitric acid at the Billingham site using imported ammonia, as it has for the last 10 months following its decision to temporarily idle the plant in August 2022.” Natural gas is used as the feedstock to produce ammonia from where CO2 is generated as a co-product. By continuing to import ammonia, the production of CO2 at the site will cease permanently.

With the Billingham Plant having been a considerable source of CO2 for BOC and the broader UK and Ireland market, the impact of the Billingham Plant stopping production permanently is significant. BOC has taken steps to secure alternative supplies of CO2 that includes increasing imports by road from Europe and have secured additional supplies from alternative ammonia and non-ammonia-based sources. Unfortunately, the cost of the alternative CO2 is significantly higher and so it is necessary to apply a temporary surcharge.

Read the full announcement CF Fertilisers UK announces proposal to permanently close ammonia plant at Billingham complex.

Previous announcements regarding CF Fertilisers UK and the production of CO2

CF Fertilisers UK announces intention to temporarily halt ammonia production at Billingham.

CF Fertilisers UK announce proposals to restructure operations.

The price BOC pays for the wholesale purchase of CO2 from its sources is both unprecedented and significant. To maintain customer supplies it has therefore been necessary to apply the temporary surcharge.

In response to CF Fertilisers announcing it will permanently cease production at their Billingham Plant, BOC has taken steps to secure alternative supplies of CO2 that includes increasing imports by road from Europe and have secured additional supplies from alternative ammonia and non-ammonia-based sources. Unfortunately, the cost of the alternative CO2 is significantly higher and so it is necessary to apply a temporary surcharge.

The price reflects the extra cost of energy and particularly natural gas and electricity in the cost of producing CO2. In addition to these is the significant cost to import CO2 by road transportation from multiple European locations. BOC always endeavours to minimise the impact of cost increases to our customers and commits to reviewing the situation regularly.

The gas, rental and delivery prices can be fixed but the EES is a variable element and fluctuates with costs.

The EES rates can go up or down and any changes will reflect the cost of natural gas.

When you order cylinder gases online the exact surcharge amount for the items in your shopping cart will be shown under 'Energy and Environment Surcharge' in checkout before you place your order.

The surcharge will remain in place until natural gas prices stabilise and CF fertiliser production costs reduce, allowing the surcharge to be removed.

This will depend on the supply mode through which you purchase CO2 from BOC (bulk, Cryospeed, cylinders or dry Ice). All changes to the surcharge rate for all modes of supply will be updated on this web page. You may also receive a letter or an email advising you of any changes.

This will depend on the supply mode through which you purchase CO2 from BOC (bulk, Cryospeed, cylinders or dry Ice). All changes to the surcharge rate for all modes of supply will be updated on this web page. You may also receive a letter or an email advising you of any changes.

The ammonia plant at Billingham on Teesside, owned and operated by CF Fertilisers, was the largest producer of CO2 in the UK and is integral to the supply of CO2 across the UK and Ireland. On the 25th July 2023, CF Fertilisers UK announced a proposal to permanently close the ammonia plant at their Billingham Complex and continue to import ammonia to the site. The announcement cites “The company intends to continue to produce ammonium nitrate fertiliser and nitric acid at the Billingham site using imported ammonia, as it has for the last 10 months following its decision to temporarily idle the plant in August 2022.” Natural gas is used as the feedstock to produce ammonia from where CO2 is generated as a co-product. By continuing to import ammonia, the production of CO2 at the site will cease permanently.

Read the full announcement CF Fertilisers UK announces intention to temporarily halt ammonia production at Billingham.


Bulk & Cryospeed Customer Q&A

`

On the 25th July 2023 CF Fertilisers announced a proposal to permanently close the ammonia plant at their Billingham Complex and continue to import ammonia to the site. The announcement cites “The company intends to continue to produce ammonium nitrate fertiliser and nitric acid at the Billingham site using imported ammonia, as it has for the last 10 months following its decision to temporarily idle the plant in August 2022.” Natural gas is used as the feedstock to produce ammonia from where CO2 is generated as a co-product. By continuing to import ammonia, the production of CO2 at the site will cease permanently.

With the Billingham Plant having been a considerable source of CO2 for BOC and the broader UK and Ireland market, the impact of the Billingham Plant stopping production permanently is significant. BOC has taken steps to secure alternative supplies of CO2 that includes increasing imports by road from Europe and have secured additional supplies from alternative ammonia and non-ammonia-based sources. Unfortunately, the cost of the alternative CO2 is significantly higher and so it is necessary to apply a temporary surcharge.

Read the full announcement CF Fertilisers UK announces proposal to permanently close ammonia plant at Billingham complex.

Previous announcements regarding CF Fertilisers UK and the production of CO2

CF Fertilisers UK announces intention to temporarily halt ammonia production at Billingham.

CF Fertilisers UK announce proposals to restructure operations

To maintain customer supplies it is necessary to to apply a temporary surcharge of €330 per tonne to all deliveries of Sureserve dewar CO2 from 15th April 2024. Please be aware that this surcharge does not cover all the extra costs BOC is incurring during this unprecedented situation and will continue to be reviewed regularly and adjusted accordingly.

This surcharge replaces any previous surcharges that applied to the supply of bulk and Cryospeed CO2 and came into effect from 15th April 2023.

This surcharge replaces any previous surcharges that applied to the supply of bulk and Cryospeed CO2.


Healthcare Customer Q&A

`

Nitrous oxide production is directly linked to the price of natural gas and the exceptional rise in natural gas prices has been significant. In order to ensure the continued supply of nitrous oxide and ENTONOX to the Healthcare industry and to cover a proportion of these costs BOC requires an additional surcharge on supplies of these gases.

For all cylinders it is the weight of N2O in each cylinder multiplied by the new additional costs. As of October 20th 2021, the implementation date, this equates to €0.49 per kg of N2O.


Have some questions?

New to BOC? Register online if you or your organisation doesn’t have an existing BOC account.

As an existing BOC customer who has never used the BOC Online Shop, you can simply activate your online account.

Not sure where your closest Gas & Gear store is? Use our store finder.

Have some questions? Why not visit our help & support page for frequently asked delivery questions.