Australia well on way to covering AdBlue needs


Incitec Pivot and government note significant progress with in tackling shortfall

Australia well on way to covering AdBlue needs
Angus Taylor

 

Incitec Pivot Ltd (IPL) has reported significant progress on its efforts to help fill the nation’s AdBlue shortfall.

Following limited supply from overseas markets and federal government investment, the company’s Gibson Island plant in Brisbane has boosted production eight-fold.

 "Our expert teams have been working non-stop throughout the holiday period to expand our domestic AdBlue manufacturing and distribution capability," IPL MD and CEO Jeanne Johns said.

"We are pleased to have reached the milestone of producing and distributing just over three million litres of AdBlue in the seven days ending on Sunday January 23, a massive 800% increase compared to the amount we were producing in early December."

The company noted that the 3 million litre-a-week milestone had been reached by expanding production of IPL’s existing method to manufacture AdBlue. This allowed the final AdBlue product – a liquid form – to be directly distributed to wholesalers for distribution to the retail network.


Read how the supply efforts were tracking mid-month, here


When Australia’s AdBlue supply shortage is less critical, IPL plans to undertake a manufacturing assessment to produce technical grade urea – a granulated (non-liquid) form of urea that can be supplied to Australian AdBlue blenders to manufacture liquid AdBlue.  

Federal industry minister Angus Taylor praised the firm and put the accomplishment into national perspective.

"Incitec Pivot last week achieved a significant milestone – producing over 3 million litres of AdBlue in the week, representing around 75 per cent of Australia’s AdBlue needs," Taylor reported.

"This locally produced AdBlue is already flowing through the domestic supply chain to wholesalers and service stations across the country.  

"Incitec Pivot has also commissioned a dedicated AdBlue distribution facility in Brisbane, which has the capacity to load the equivalent of three B-double trucks per hour.

"The 24/7 operations will allow more AdBlue to get to market efficiently and help boost consumer confidence." 

He noted that other local AdBlue manufacturers continue to play an important role in the supply chain through production and distribution, with the Government assisting these businesses by facilitating commercial supplies from overseas through our diplomatic network. 

"Since late 2021, the government has been working closely with AdBlue manufacturers, fuel retailers, and transport and logistics bodies through the National Coordination Mechanism, to replenish out-of-stock sites," Taylor said. 

"As a result of these collaborative efforts, we have managed to largely overcome many localised stock-outs at priority sites across the country, including the Hume Highway, the Riverina and South Coast of New South Wales."

Taylor reiterated ongoing advice from the government and suppliers for industry to stick to normal levels of purchasing to aid the return to normality.

With a view to the longer-term future, the government continued to offer assistance to AdBlue manufacturers and suppliers to secure international supplies of TGU and AdBlue, and assist with shipping and customs entry into Australia.

 

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