Ramp up in local AdBlue production keeps Australia moving
Fertiliser manufacturer Incitec Pivot has ramped up its production of AdBlue by around 800 per cent, as the Morrison Government continues to work closely with industry to bolster diesel exhaust fluid (DEF) supplies for Australia’s transport sector and keep the wheels of industry moving.
Incitec Pivot last week achieved a significant milestone – producing over 3 million litres of AdBlue in the week, representing around 75 per cent of Australia’s AdBlue needs. This locally produced AdBlue is already flowing through the domestic supply chain to wholesalers and service stations across the country.
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 and help boost consumer confidence.
Temporarily securing our local capabilities through Incitec Pivot has been complemented by the Government’s ongoing work to secure additional international supplies and our work with industry to manage stock supplies nationally.
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 our diplomatic network.
Since late 2021, the Government 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 of these collaborative efforts, we have 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.
Although AdBlue users may continue to see a few sites occasionally stocked-out, they can be reassured that with the new AdBlue supply coming into the market, these sites are now being progressively replenished.
Minister for Industry, Energy and Emissions Reduction Angus Taylor said fast action between the Government and industry has delivered a positive outcome for the critical 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,” Minister Taylor said.
“The company has already ramped up production to over 3 million litres per week and this milestone is great news. 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.”
As part of the partnership with the Government, Incitec Pivot will shortly begin trialing 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 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.
Minister Taylor’s office: 02 6277 7120