Incitec Pivot, a fertiliser manufacturer, will secure the local production of Technical Grade Granular Urea (TGU) to boost the supply of AdBlue, the diesel exhaust fluid used in heavy transport.
Under an agreement stuck with the AdBlue Taskforce and the Department of Industry, Energy and Emissions Reduction, Incitec Pivot will rapidly design, trial and – on completion of successful tests – manufacture significant quantities of TGU, a critical component of AdBlue.
Incitec Pivot will supply quantities as needed by current suppliers.
AdBlue is used in modern diesel engines to control nitrogen oxide pollutants including in trucks, large passenger buses, mining equipment and agricultural vehicles.
This announcement is a step in the right direction and provides the trucking industry with certainty, minister for Industry, Energy and Emissions Reduction Angus Taylor said.
“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,” he 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. This agreement is another important part of the government’s broader strategy to build supply chain resilience, which includes addressing shipping issues, ensuring local supplies of critical products and bolstering local manufacturing capability.”
Boosting local capabilities will be complemented by ongoing work to secure additional supplies from international sources, such as the Indonesian government who will provide 5,000 tonnes of refined urea in January – enough to make approximately one additional month’s supply of AdBlue.
“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,” minister for Trade, Tourism and Investment Dan Tehan said.
The government has been working with manufacturers and shipping companies to ensure shipments of urea and AdBlue that are already on their way to Australia are prioritised for loading and delivery.
“Shipping companies have been helpful in prioritising the loading of a number of containers coming through Singapore, to ensure that supplies arrive in Australia as soon as possible. I would like to thank those companies that have supported and offered support to this effort,” Taylor said.
This builds on work already underway by the AdBlue taskforce, led by James Fazzino, chair of Manufacturing Australia and former CEO of Incitec Pivot, along with Andrew Liveris, former chairman and CEO of The Dow Chemical Company and director at Saudi Aramco, and Dr Cathy Foley, Australia’s chief scientist.
The government has also engaged the National Coordination Mechanism (NCM) to ensure there is a consolidated approach and ongoing information is shared between government agencies and industry.
The government also notes that industry have raised concerns about high price of AdBlue in some areas. The government understands that some pricing pressures may be normal in this situation, but expects suppliers to give customers a fair deal on AdBlue.