Government moves to sure up AdBlue shortage

diesel exhaust AdBlue

The Morrison government has struck an agreement with fertiliser manufacturer Incitec Pivot to secure local production of refined urea for the supply of diesel exhaust fluid (AdBlue).

Angus Taylor, Minister for Industry, Energy and Emissions Reduction struck the deal with the specialist AdBlue taskforce on December 20.

Under this agreement, Incitec Pivot will rapidly design, trial and, on completion of successful tests, scale-up manufacturing of significant quantities of Technical Grade Granular Urea (TGU), a critical component of AdBlue.

DEF, commonly known by its trade name AdBlue, is used to modify late model diesel engine operations to take Nitric Oxide out of their emissions. Without the product, these engines will cease to operate.

Angus Taylor says the announcement is a step in the right direction and provides the trucking industry with certainty.

“Australia currently has adequate stocks of AdBlue stock on hand, but this agreement with Incitec Pivot will enable domestic production of TGU or supply of an AdBlue product to domestic manufacturers to ensure current supply chain disruptions don’t impact on Australian businesses,” Minister Taylor said.

“The ramping up of production by Incitec Pivot will be done without impacting agricultural fertiliser supply to local farmers or disrupting local distribution chains for AdBlue.

The government says boosting local capabilities will be complemented by the ongoing work to secure additional supplies from international sources.

Following outreach from Minister for Trade, Tourism and Investment Dan Tehan the Australian embassy in Jakarta has confirmed with the Indonesian Government an offer to provide 5,000 tonnes of refined urea in January. This is enough urea to make around an additional month’s worth of AdBlue, according to Tehan.

“By working closely with our partners, we have been able to secure this critical supply for Australia. We will continue to strengthen our close relationships around the world to support and further Australia’s interests,” he says.

The Government has been working with the manufacturers and the shipping companies to ensure shipments of urea and AdBlue that are already on their way to Australia to ensure they get priority for loading and delivery.

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