The Morrison Government has avoided a national shortage of imported AdBlue diesel exhaust fluid (DEF) by pumping a $30 million grant into a Brisbane fertiliser manufacturer.
A crisis had loomed for owners of heavy and light diesel vehicles which cannot operate without an adequate amount of the fluid onboard, as imported supplies from China and Russia ran dry.
Incitec Pivot has ramped up its production of AdBlue by around 800%, as the Government says it continues to work with industry to bolster DEF supplies
Last week it says Incitec Pivot achieved a significant milestone – producing more than three million litres of AdBlue in the week, representing around 75% of Australia’s needs.
This locally produced AdBlue is already flowing through the domestic supply chain to wholesalers and service stations across the country says the Government.
It says that Incitec Pivot has also commissioned a dedicated AdBlue distribution facility in Brisbane, which has the capacity to load the equivalent of three B Double trucks per hour. The 24/7 operations will allow more AdBlue to get to market efficiently.
Other local AdBlue manufacturers continue to play an important role in the supply chain through production and distribution, with the Government assisting these businesses by facilitating commercial supplies from overseas through its diplomatic network.
Since late 2021, the Government says it has been working closely with AdBlue manufacturers, fuel retailers, and transport and logistics bodies through the National Coordination Mechanism, to replenish out-of-stock sites.
As a result it says it has managed to largely overcome many localised stock-outs at priority sites across the country, including the Hume Highway, the Riverina and South Coast of NSW.
Minister for Industry, Energy and Emissions Reduction Angus Taylor said fast action between the Government and industry has delivered a positive outcome for the sectors that use AdBlue.
“I thank Incitec Pivot for stepping up as we work together to keep our trucks fuelled and Australian diesel motorists on the road,” Taylor says.
“While Australia currently has sufficient volumes of AdBlue to meet its needs, this local production will help restore normal national stock levels.
“I also thank the broader AdBlue manufacturing, fuel distribution and transport sectors for their continued cooperation with the Government on a weekly basis.
“This open communication has meant we have been able to replenish sites and minimise disruptions for AdBlue users during the holiday period.
“To ensure stocks can be replenished across the country, I continue to encourage industry to purchase stocks only when needed and at normal levels,” he says
As part of the Government partnership, Incitec Pivot will shortly begin trialling the production of technical grade urea (TGU), the active ingredient in AdBlue, with an additive sourced from Germany.
With a view to the longer-term future, the Government says it continues to offer assistance to AdBlue manufacturers and suppliers to secure international supplies of TGU and AdBlue, and assist with shipping and customs entry into Australia.
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