A crisis threatening Australia’s logistics system has been averted with increased local production of the AdBlue diesel fuel additive for trucks filling the gap created by a global supply crunch.
Fertiliser maker Incitec Pivot struck a deal with the federal government to ramp up manufacturing of the AdBlue fluid at its Gibson Island plant in Brisbane, which is required as a fuel additive for most modern diesel vehicles to control nitrogen oxide pollution.
Local manufacturing of diesel fuel additive AdBlue has ramped up to avert a supply crisis. Credit:Krisztian Bocsi/Bloomberg
The federal government granted Incitec Pivot $29.4 million last year to produce AdBlue, amid fears of widespread supply chain disruption preventing the delivery of food and goods across the country.
Energy and Emissions Reduction Minister Angus Taylor said on Monday the company is now producing enough AdBlue, around 75 per cent of the nation’s needs, to fuel the hundreds of thousands of trucks that criss-cross the country with deliveries.
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“I thank Incitec Pivot for stepping up as we work together to keep our trucks fuelled and Australian diesel motorists on the road,” Mr Taylor said.
“The company has already ramped up production to over 3 million litres per week and this milestone is great news. While Australia currently has sufficient volumes of AdBlue to meet its needs, this local production will help restore normal national stock levels.”
Mr Taylor said any supply centres that currently remained out of AdBlue would be restocked soon. He encouraged industry to only purchase what they need, so supply and demand can rebalance as quickly as possible.
The AdBlue shortage started to bite in December when global supplies of urea, the prime ingredient for its manufacture, dried up.
Trucking crisis averted by government deal to manufacture scarce fuel additive
Source: Philippines Alive
