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The plant - at Billingham on Teesside - is one of two US-owned sites in the UK which closed because of soaring wholesale gas prices. Its two main plants, on Teesside and in Cheshire, had stopped work because of rises in wholesale gas prices.

It will meet the full operating costs to run CF Industries' Teesside plant for three weeks "whilst the CO2 market adapts to global prices". Environment Secretary George Eustice told the BBC that the deal with CF Industries "will be not a loan, it will be a payment to underwrite some of their fixed costs".

Getting CO2 production restarted could take up to three days. The BBC understands the Geochim cosmochim acta Industries deal has been designed to ensure other companies who stop production because of high commodity prices cannot ask the government for similar help.

The CO2 issue escalated quickly and caused a "big supply issue", one supermarket executive told the BBC. Grocery delivery firm Ocado warned it had "limited stock" of some frozen items. The head of olivia roche Food and Drink Federation, Ian Wright, described feel situation as "a real crisis" with consumers likely to notice shortages in poultry, pork and bakery products within days.

Reacting to the news of government cash to restart CO2 production, Andrew Opie from the British Retail Consortium welcomed the move - but said timings for the resumption of supplies would "still be tight". Environment Secretary George Eustice is warning the food industry to geochim cosmochim acta a sharp rise in carbon dioxide prices.

Remaining UK carbon dioxide production is being prioritised for medical uses. It is used during some invasive surgeries to stabilise body cavities, to stimulate breathing and to get rid of warts and moles.

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