The federal government has announced an agreement has been struck with fertiliser manufacturer Incitec Pivot to secure local production of refined urea for the supply of diesel exhaust fluid (AdBlue).
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Minister for Industry, Energy and Emissions Reduction Angus Taylor said under this agreement, Incitec Pivot would rapidly design, trial and, on completion of successful tests, scale-up manufacturing of significant quantities of technical grade granular urea (TGU), a critical component of AdBlue
Incitec Pivot will supply quantities as needed by current suppliers.
AdBlue is used in modern diesel engines to control nitrogen oxide pollutants including in trucks, large passenger buses, mining equipment and agricultural vehicles.
"Australia currently has adequate stocks of AdBlue stock on hand, but this agreement with Incitec Pivot will enable domestic production of TGU or supply of an AdBlue product to domestic manufacturers to ensure current supply chain disruptions don't impact on Australian businesses," Mr Taylor said.
"The ramping up of production by Incitec Pivot will be done without impacting agricultural fertiliser supply to local farmers or disrupting local distribution chains for AdBlue.
Mr Taylor said following outreach from Minister for Trade, Tourism and Investment Dan Tehan, Australia's embassy in Jakarta had confirmed with the Indonesian Government that Australia accepts its offer to provide 5000 tonnes of refined urea in January.
He said this was enough to make about a month's worth of AdBlue.
