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Australia's supply chain may be crippled by a shortage of AdBlue in 2022

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Australia's supply chain may be crippled by a shortage of AdBlue in 2022

2022-07-25







AdBlue is an anti-pollutant added to most modern diesel engines, including in trucks and some farm equipment. In the late last year, Australia faced a national shortage of AdBlue due to China stopped exporting urea which is the main ingredient of AdBlue.


In order to solve the problem, the Morrison government tipped almost $30 million into Incitec Pivot to ramp up AdBlue manufacturing at its facility in Queensland which catered to most of Australia's requirements.


But Incitec Pivot Limited (IPL) will close the Australian facility at the end of the year and stop manufacturing AdBlue.


In that case Australia will be facing the shortage and potential bowser price increases unless another domestic manufacturing solution was created before the end of the year.







 
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