Shortages of urea, which is used to make AdBlue solution – the diesel engine anti-pollution additive – are threatening to bring Australia’s transport industry, which is heavily reliant on diesel trucks, to a halt, the Australian Broadcasting Corp. reported late last week, citing the country’s National Road Transport Association CEO Warren Clark. According to Clark, the supply of urea from China has dried up.
The transport association fears Australia’s supply chain could collapse within eight weeks unless China lifts its export ban on urea, according to the report.
China supplies around 80 percent of Australia’s diesel-grade urea, Clark said, and he is calling on Australia’s Trade Minister Dan Tehan to “find an alternative source.”
Incitec Pivot Ltd. (IPL), Southbank, Melbourne, in a statement regarding the supply of AdBlue solution, issued on Dec. 10, said it supplies around 10 percent of the Australian market for AdBlue solution and is the only Australian manufacturer to make the solution from urea melt.
The company said the remaining 90 percent of the Australian AdBlue market is reliant on imports of technical trade urea.
Worries about the current AdBlue supply shortages in the country have been compounded by the impending closure of IPL’s Gibson Island plant at Brisbane at the end of next year (GM Nov. 12, p. 1).
IPL said “only a very small proportion” of urea made at the plant is used to make AdBlue solution.
“We are fully committed to supplying our domestic customers’ requirements and are currently investigating ways we can increase manufacturing capacity of the urea used to make AdBlue solution over the next few months,” the company said.
IPL said it is working closely with its customers, and also with the Federal Government and the broader industry, including the AdBlue Taskforce, which was established by the government on Dec. 9. The Taskforce will work across government and with industry to develop solutions to any potential future supply constraints.