No Shortages of AdBlue Forecasted Currently

Article by: Hari Yellina

The domestic supply of the essential component required to create AdBlue has been a source of concern for farming and transport organisations, but the federal government has taken action to ease those worries. Diesel exhaust fluid (DEF), an anti-pollutant necessary for the majority of contemporary diesel engines, including those in trucks and some farm machinery, is more often known as AdBlue. The Department of Climate Change, Energy, the Environment and Water stated that the DEF market was currently well-supplied and that no shortages were anticipated in a statement to the ABC. Refined urea is used to create DEF. The majority of this essential chemical was imported from China up until last year.

The Morrison government invested roughly $30 million into Incitec Pivot (IPL) to enhance domestic urea manufacturing at its facility in Queensland when changes in supply led to a shortage of the essential substance in late 2021. Due to its inability to obtain a reasonable feedstock gas supply from the east coast gas market, IPL will close its Gibson Island facility at the end of the year. The transportation and agricultural industries are once again concerned about supply due to this impending closure. Nevertheless, a government official claimed that the sector now has more supply chain variety from nations other than China.

Bob Katter, an outspoken federal lawmaker, declared it intolerable for the Australian transportation sector to be entirely dependent on an imported good. A reserve gas resource policy, according to Mr. Katter, is a step toward long-term problem solving. He explained that “AdBlue is urea, which is an ammonia nitrate natural gas.” No matter how many individuals volunteer to manufacture it, the sector won’t be able to survive unless the government can permanently lower the price of gas. Mr. Katter has requested a halt of the use of DEF for 18 months to allow for the construction of a state-owned urea factory. “You must have a reserve resource strategy, you must provide the funding for the plant’s construction because no one else will take that risk, and you must own the plant now and, in the future,” he stated.