Australia boosts AdBlue production – MHD

The Morrison Government reports fertiliser manufacturer Incitec Pivot has increased its production of AdBlue by roughly 800 per cent.

Last week, Incitec Pivot produced more than 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, with the capacity to load the equivalent of three B Double trucks per hour.

The Morrison Government says 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 the diplomatic network.

Since late 2021, the Government has been working with AdBlue manufacturers, fuel retailers, and transport and logistics bodies through the National Coordination Mechanism, to replenish out-of-stock sites.

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, the Government reports.

Angus Taylor, Minister for Industry, Energy and Emissions Reduction, says 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,” Angus says.

“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.

Brad Williams, Australian Logistics Council CEO, says the ramp-up of local production, ongoing imports and strategic distribution of available supplies has given businesses confidence that the AdBlue situation has stabilised and stocks are gradually starting to increase.

“While we’re not back to normal just yet, the collaborative effort between the Australian Government and industry has eased the supply pressures on AdBlue and should give users confidence the situation is manageable moving forward,” Brad says.

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