The president of a major US craft brewery has described how CO2 shortages and supply uncertainties led to $100,000 in lost revenues.
Speaking on gasworld’s ‘’ webinar, Jacob Landry, Founder & President of New Orleans-based Urban South Brewery, explained how it was left grappling for supply solutions following a three-month supplier shutdown.
“From the lost revenue and increased expense we’re very vulnerable right now,” said Landry.
“I don’t know whether we’re going to be paying three times for our gas for the next three or four months, or whether we’re going to get a supplier to come in with more competitive pricing.”
The 10-year-old brewery relies on the Jackson Dome geological formation in Mississippi for its primary CO2 supply, sourcing gas through standard commercial distributors.
Its supplier cannot clean the affected CO2 to beverage grade, while other suppliers that can process it have faced additional demand. It was the first time in a decade that the brewery .
“Some suppliers are telling us ‘yes we can deliver you gas tomorrow, but we’re going to require a three-year contract when your current contract ends, and at 25-to-50% more than you pay now’. So there’s not a lot of friendliness out there when they smell blood in the water.”
The webinar heard how challenges are not restricted to Louisiana with every region having distinct dynamics.
CO2 supply in the as ethanol producers develop carbon capture and sequestration projects that may remove existing sources from the merchant market, according to CO2 consultant Bruce Woerner.
“We have a tale of two cities. The Midwest is pretty long in CO2, [while the] West Coast and East Coast [are] still very tight on CO2,” he said.
Countdown to North American CO2 Summit 2026
Join the key conversations shaping North America’s CO2 market, from supply constraints to decarbonisation and utilisation, at the North American CO2 Summit in New Orleans next month (14-16 September). Hear practical insights on sourcing, pricing, and crisis management to navigate volatility and lifecycle change, and connect with stakeholders across the full CO2 value chain in North America. Find new opportunities and build partnerships to help your business succeed through the decade ahead.
Click to register.
