The Morrison Government is working closely with industry to understand current global pressures in the urea market and any implications this may have on the supply of diesel exhaust fluid in Australia, also known as AdBlue.
Australia currently has normal levels of stocks to hand of AdBlue, with more refined urea stocks on their way to Australia.
There are currently in excess of 15 million litres of AdBlue supplies on hand, which is equivalent to close to 5 weeks of business-as-usual demand.
There are multiple shipments of refined urea currently on their way to Australia, which are estimated to provide over 2 weeks of additional supply to the market.
Advice provided to the Department of Industry, Science, Energy and Resources from AdBlue manufacturers is that this is within range of normal stockholding levels.
Industry is also reporting that other international supply chains are open and operating, a positive indication of ongoing supply options in the medium term.
At the request of the Prime Minister, Minister for Industry, Energy and Emissions Reduction Angus Taylor with the Department for Industry, Science, Energy and Resources will now lead a coordinated whole-of-government effort to ensure reliable and ongoing supply of AdBlue in close cooperation with industry.
Minister Taylor said businesses and consumers buying additional stocks is unnecessary and unhelpful, and urged industry to continue operating as per usual and maintain normal levels of AdBlue.
“We are quickly and actively working to ensure supply chains of both refined urea and AdBlue are secure so that industry can have certainty on their operations,” Minister Taylor said.
“Global supply pressures, stemming from increased domestic use in China, have led to international issues in securing refined urea, which is key to producing AdBlue. This is exacerbated by the global shortage of natural gas, the essential ingredient used to make urea.
“I can assure Australians that the Government is working to ensure we do not face any shortages. We are pursuing a range of measures to address global pressures in the urea market. We will keep our trucks running and Australian motorists on the road.”
The Government understands the importance of AdBlue to the broader economy, the transport and logistics sectors, as well as to some other diesel motorists.
Minister Taylor has today announced the establishment of the AdBlue Taskforce, alongside Minister for Trade, Tourism and Investment Dan Tehan.
The Taskforce will be 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. Additional industry members will be confirmed in due course.
The Taskforce will work across government and with industry to develop solutions to any potential future supply constraints. Options being explored include alternative international supply options for refined urea, bolstering local manufacturing capabilities and technical options at the vehicle level.
The Government is working with the Australian Competition and Consumer Commission (ACCC) and industry on whether an authorisation is needed to allow Australian diesel exhaust fluid producers to share information.