The Australian federal government has formed a taskforce to address a potential shortage of diesel exhaust fluids (DEF) in Australia, which could affect the mining and agricultural sectors.
There is currently on hand in excess of 15mn litres of DEF, which is known in Australia as AdBlue, which is equivalent to close to five weeks of business as usual demand, Australian energy minister Angus Taylor said.
DEF is used in the catalytic converters that are part of the vehicle exhaust system and injected into the exhaust gases and burnt at high temperatures to break down the nitrogen oxides in the exhaust fumes. It ensures diesel-fuelled trucks comply with Australia's national emission standards.
"There are multiple shipments of refined urea currently on their way to Australia, which are estimated to provide over two weeks of additional supply to the market," Taylor said. Advice provided to the Department of Industry, Science, Energy and Resources from AdBlue manufacturers is that this is within the range of normal stocks.
"Global supply pressures, stemming from increased domestic use in China, have led to international issues in securing refined urea, which is key to producing AdBlue. This is exacerbated by the global shortage of natural gas, the essential ingredient used to make urea," Taylor said.
The DEF taskforce will be led by the chairman of industry group Manufacturing Australia James Fazzino, who is also a former chief executive of fertilizer group Incitec Pivot, along with the former chairman and chief executive of Dow Chemical Andrew Liveris, who is also a director at state-controlled Saudi Aramco, as well as Australia's chief scientist Cathy Foley.
The taskforce will work across the government and with the industry to develop solutions to any potential future supply constraints. "Options being explored include alternative international supply options for refined urea, bolstering local manufacturing capabilities and technical options at the vehicle level," Taylor said.
