The Federal Government has announced a deal with Incitec Pivot to manufacture urea in Australia.
HVIA Chief Executive Todd Hacking said the deal will guarantee supply for Australian AdBlue manufacturers and relieve pressure of road transport operators.
“It’s another amazing example of how we can onshore and solve problems by working together,” Mr Hacking said.
“Thank you to Prime Minister Scott Morrison and Ministers Dan Tehan and Angus Taylor for listening to industry and acting decisively.
Minister for Industry, Energy and Emissions Reduction Angus Taylor, with the AdBlue Taskforce, has struck an agreement with fertiliser manufacturer Incitec Pivot to secure local production of refined urea for the supply of diesel exhaust fluid (AdBlue).
Under the agreement, Incitec Pivot will 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.
Minister Taylor said this announcement is a step in the right direction and provides the trucking industry with certainty.
“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,” Minister 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.
“This agreement is another important part of the Government’s broader strategy to build supply chain resilience, which includes addressing shipping issues, ensuring local supplies of critical products and bolstering local manufacturing capability.”
Boosting our local capabilities will be complemented by the ongoing work to secure additional supplies from international sources, to ensure we are prepared for any contingency.
Australia has acceped an offer from the Indonesian Government to provide 5,000 tonnes of refined urea in January – enough for an additional month’s worth of AdBlue.
Minister Tehan said Australia is leveraging strong relationships with international partners to open up new sources of supply to meet future needs for refined urea.
“By working closely with our partners, we have been able to secure this critical supply for Australia,” Minister Tehan said.
“We will continue to strengthen our close relationships around the world to support and further Australia’s interests.“
The Government has been working with the manufacturers and the shipping companies to ensure shipments of urea and AdBlue already on their way to Australia get priority for loading and delivery.
“Shipping companies have been helpful in prioritising the loading of a number of containers coming through Singapore to ensure that supplies arrive in Australia as soon as possible. I would like to thank those companies that have supported and offered support to this effort,” Minister Taylor said.
The AdBlue taskforce is led by James Fazzino, Chair of Manufacturing Australia and former CEO of Incitec Pivot, along with Andrew Liveris, former Chairman and CEO of The Dow Chemical Company and Director at Saudi Aramco, and Dr Cathy Foley, Australia’s Chief Scientist.
The Government has acknowledged industry concerns about high price of AdBlue in some areas.
A statement says “The Government understands that some pricing pressures may be normal in this situation, but expects suppliers to give customers a fair deal on AdBlue.”
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