In a welcome announcement this morning, Minister for Industry, Energy and Emissions Reduction the Hon Angus Taylor MP (along with Minister for Trade, Tourism and Investment the Hon Dan Tehan MP), has announced an agreement to secure local production of refined urea for supply of AdBlue while at the same time highlighting again that Australia “currently has adequate stocks of AdBlue stock on hand”.

In commenting on the announcement ACAPMA CEO Mark McKenzie noted, “The net affect of the Minister’s statement this morning is that Australia appears to have shored up BAU AdBlue supplies through until March 2022”.

This announcement relates to total supply and there will be a need to ensure equity of distribution to ensure that AdBlue continues to be available for users in the on-road transport, agricultural and ports sectors irrespective of their location. To that end, it is understood that Government conversations are have been initiated in respect of ACCC authorisation to allow competitors to coordinate on supply.

“In the interim, it is beholden on all retailers and distributors to all that is reasonably possible to prevent overbuying of AdBlue to ensure that this vital component continues to be available to all who need it”, said Mark.

Please see below for the media release from the Ministers

ACAPMA

Increasing AdBlue supplies and protecting Australia’s transport industry
20 December 2021

Joint media release with Minister for Trade, Tourism and Investment the Hon Dan Tehan MP

The Morrison Government has acted quickly and decisively to keep the trucking industry moving and Australian diesel motorists on the road.

Minister for Industry, Energy and Emissions Reduction Angus Taylor, with the AdBlue Taskforce, has struck an agreement with fertiliser manufacturer Incitec Pivot to secure local production of refined urea for the supply of diesel exhaust fluid (AdBlue).

Under this agreement, Incitec Pivot will rapidly design, trial and, on completion of successful tests, scale-up manufacturing of significant quantities of Technical Grade Granular Urea (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.

Minister for Industry, Energy and Emissions Reduction Angus Taylor said this announcement is a step in the right direction and provides the trucking industry with certainty.

“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,” Minister Taylor 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 our local capabilities will be complemented by the ongoing work to secure additional supplies from international sources, to ensure we are prepared for any contingency.

Following outreach from Minister for Trade, Tourism and Investment Dan Tehan our embassy in Jakarta has confirmed with the Indonesian Government that we accept their offer to provide 5,000 tonnes of refined urea in January. This is enough urea to make around an additional month’s worth of AdBlue.

Minister Tehan said Australia is leveraging our strong relationships with our international partners to open up new sources of supply to meet our future needs for refined urea.

“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 Tehan said.

The Government has been working with the manufacturers and the shipping companies to ensure shipments of urea and AdBlue that are already on their way to Australia to ensure they get priority 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,” Minister 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 joined-up approach and ongoing information sharing between government agencies and industry. The next NCM meeting with industry stakeholders will be held later today.

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.

Media contacts:

Minister Taylor’s office 02 6277 7120

 

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