The Albanese Government is making sure Australian trucks keep on moving by promoting domestic manufacture of a diesel exhaust fluid (DEF) additive, making the trucking industry more resilient and the country more self-sufficient.
The $16.15 million Maintaining Our Supply of Diesel Exhaust Fluid (MOSDEF) grants program will encourage Australian industry to produce Technical Grade Urea (TGU) domestically, or DEF from means other than imported TGU. DEF is also known widely by its trade name 'AdBlue'.
DEF reduces harmful nitrogen oxide emissions from diesel engines, but tight TGU supply last summer led to concerns about Australia's domestic supply and our overreliance on imports.
The MOSDEF grant program will reduce this vulnerability by supporting manufacture of ISO 222421-compliant DEF or TGU.
Minister for Climate Change and Energy Chris Bowen said the grant program was part of the Albanese Government's approach to secure the supply of TGU here at home.
"The grant program will support the sovereign manufacture of Diesel Exhaust Fluid and Technical Grade Urea in Australia, and make our trucking industry more resilient," Minister Bowen said.
"This funding will protect households, business and industry from further disruptions and bolster stock holdings of TGU. But most importantly, it will keep our transport and freight sectors moving"
Grant recipients can receive up to $16.15 million under the 4-year program, which will fund up to 50 per cent of project costs, from facilities central to existing DEF infrastructure and logistics.
DEF is made by blending TGU with de-ionised water and is mostly consumed by the long-haul trucking fleet in Australia.
Some passenger vehicles, including cars and large buses, and agricultural, mining and other off-road equipment also rely on DEF.
The Albanese Government is already moving to make the local DEF market more secure by:
- Creating a government-controlled stockpile of 7,500 tonnes of TGU for an additional five weeks of supply beyond industry stock levels in the event of a supply shortage, and
- Implementing a transparency system for collection and publication of data provided by industry.
The opening of the MOSDEF grant program is the latest in the suite of measures to restore security to the DEF market in Australia.
Maintaining Our Supply of Diesel Exhaust Fluid applications are open until 31 January 2023 and can be accessed through business.gov.au/MOSDEF.
