Joint press release with Minister of Trade, Tourism and Investment, MP Hon Dan Tehan

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

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

Under this agreement, Incitec Pivot will design, test and, upon successful testing, scale up the production of significant quantities of technical grade granular urea (TGU), an essential component of AdBlue.

Incitec Pivot will supply quantities according to the needs of current suppliers.

AdBlue is used in modern diesel engines to control nitrogen oxide pollutants, especially in trucks, large passenger buses, mining equipment and agricultural vehicles.

Industry, Energy and Emissions Reduction Minister Angus Taylor said the announcement is a step in the right direction and gives certainty to the trucking industry.

“Australia currently has sufficient stocks of AdBlue stock, but this agreement with Incitec Pivot will allow domestic production of TGU or the supply of an AdBlue product to domestic manufacturers to ensure that current supply chain disruptions procurement have no impact on Australian businesses, ”said Minister Taylor. noted.

“The ramp-up of Incitec Pivot production will occur without impacting the supply of agricultural fertilizers to local farmers or disrupting local AdBlue distribution chains.

“This agreement is another important part of the government’s broader strategy to build supply chain resilience, which includes addressing shipping challenges, securing local supplies of essentials and building capacity. local manufacturing. “

Strengthening our local capacity will be complemented by ongoing work to secure additional supplies from international sources, to ensure we are prepared for any eventuality.

Following the communication from Minister of Trade, Tourism and Investment Dan Tehan, our embassy in Jakarta confirmed to the Indonesian government that it accepted its offer to supply 5,000 tonnes of refined urea in January. This is enough urea to produce about a month more AdBlue.

Minister Tehan said Australia is leveraging our strong relationship 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 essential supply for Australia. We will continue to strengthen our close relationships around the world to support and promote Australia’s interests, ”said Minister Tehan.

The government has been working with manufacturers and shipping companies to secure shipments of urea and AdBlue that are already en route to Australia to ensure they get priority for loading and delivery.

“Shipping companies have been helpful in prioritizing the loading of a number of containers passing through Singapore to ensure that supplies arrive in Australia as soon as possible. I would like to thank the companies who have supported and offered their support to this effort, ”said Minister Taylor.

This builds on the work already underway of the AdBlue task force, led by James Fazzino, president of Manufacturing Australia and former CEO of Incitec Pivot, as well as Andrew Liveris, former chairman and CEO of The Dow Chemical Company and director. from Saudi Aramco, and Dr Cathy Foley, Australian Chief Scientist.

The government has also engaged the National Coordination Mechanism (NCM) to ensure a common approach and continuous information sharing between government agencies and industry. The next NCMs meeting with industry stakeholders will take place later today.

The government also notes that the industry has expressed concerns about the high price of AdBlue in some regions. The government understands that some price pressures may be normal in this situation, but expects suppliers to give customers a fair deal on AdBlue.