HIGHLIGHTS
- Canberra and fertilizer producer Incitec Pivot have agreed to produce Urea in order to enhance the output of refined Urea needed to generate AdBlue.
- The Australian government is looking for more supplies around the world. Australia recently completed an agreement with Indonesia to supply 5,000 tonnes of refined Urea to Australia in January next year.
- Australia now has sufficient AdBlue reserves and allowed Incitec Pivot to produce technical granular Urea (TGU) in the country.
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Urea is the main component of AdBlue, a compound that is poured directly into the engine’s exhaust system to help reduce nitrogen oxide (NOx) emissions. Without AdBlue, the transportation of many large cargo vans, small vans and diesel cars with environmentally sensitive propulsion systems would be forced to a halt.
Australia is expanding its Urea production capacity
In response to the Urea scarcity, the Australian government has collaborated closely with domestic industry to increase local production capacity. Simultaneously investigate overseas sourcing alternatives for refined Urea and enhance technical possibilities at the vehicle level.
Mr. Angus Taylor, Minister for Industry and Energy, announced that Canberra and fertilizer producer Incitec Pivot have agreed to produce Urea in order to enhance the output of refined Urea needed to generate AdBlue.
The chemical company will carry out the development of the plan, test and after success will scale up production in significant quantities of refined Urea to supply the domestic market. The company has committed to carrying out a production review to produce engineering-grade Urea and expand AdBlue production at its Gibson Island plant in Brisbane.
Minister Angus Taylor added that Australia now has sufficient AdBlue reserves and allowed Incitec Pivot to produce technical granular Urea (TGU) in the country. “This agreement is another important part of the Government’s broader strategy to build supply chain resilience, including addressing shipping issues, securing supplies of critical products and strengthening domestic production capacity” he said.
Australia still needs to diversify its Urea supply
Besides expanding domestic supply, the Australian government is looking for more supplies around the world. Australia recently completed an agreement with Indonesia to supply 5,000 tonnes of refined Urea to Australia in January next year. South Korea sent Australia 27,000 liters of Urea in November 2021.
China used to account for 80% of Australia’s Urea supply but recently halted exports to boost domestic supply. This makes Urea stockpiles severely reduced and Australia is unlikely to find alternative supplies.
The Urea shortage that causes AdBlue scarcity risks crippling the road transport network and hurting Australia’s supply chain of essential goods.
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