Australia is facing a ticking time bomb, with a potential new shortage of a critical item now just five months away.

  Late last year, the country was hit by an alarming AdBlue shortage, sparking fears that up to half of Australia’s truck fleet – representing tens of thousands of vehicles – could be pulled off the road as a result.

  The problem was caused by a global shortage of urea, a key ingredient found in diesel ­exhaust fluid (DEF) – also known as AdBlue – and a large component in fertiliser.

  A major factor in the supply disruption was the fact that China – which previously supplied 80 per cent of Australia’s urea supplies – recently banned the export of the product in order to lower fertiliser prices domestically.

  The shortage sparked panic as AdBlue is injected into the exhaust systems of modern diesel vehicles in order to reduce emissions, which is a mandatory requirement for trucks, private vehicles and tractors.

  That crisis was ultimately averted after the former government granted fertiliser juggernaut Incitec Pivot $29.4 million to produce extra supplies of AdBlue.

  However, the firm previously announced it would cease AdBlue production at its Gibson Island facility in Brisbane at the end of 2022, and the company has since doubled down on that decision.

  It means that when the Gibson Island facility winds down in just five months’ time, Australia will be completely dependent on imports of AdBlue – a potentially devastating position to be in, given the world’s ongoing supply chain nightmares.

  A spokesman for Energy and Climate Change Minister Chris Bowen recently told the Financial Review that there were “no forecast shortages” of DEF and that Australia now has “additional supply chain diversity from countries other than China”.

  “With Incitec Pivot closing, whatever we come up with as a nation, we must ensure onshore production of the base agent. We cannot be reliant on overseas supply, particularly because of the ongoing disruption to supply chains,” he said.

  “Bringing sovereign capacity back onshore is needed.”

  Mr Dumesny said he was not blaming the newly elected Albanese Government for the ongoing problem, but said the nation was facing a crucial “deadline” that couldn’t be ignored any longer.

  “We can’t rely on overseas anymore … it’s a perfect storm at the moment,” he said.

  He added that while it was possible to turn off the additive, it would immediately void warranties, meaning manufacturers and insurers wouldn’t cover any damages.

  News.com.au understands turning off the additive could also leave companies exposed to crushing, potentially six-figure fines.

  “The risks of emissions fines are staggering – it’s an essential ingredient nowadays and AdBlue has reduced truck emissions by 95 per cent,” he said.

  “It does a powerful job and is part of that essential energy mix.”

  It was a sentiment echoed by Road Freight NSW CEO Simon O’Hara, who recently told news.com.au that the AdBlue problem remained a top concern for the industry.

  “AdBlue remains an issue for us. Incitec Pivot is due to close in December … and it’s not that far away,” he said.

  “The issue for us is if we don’t have a local plant producing high-grade urea for use in AdBlue, we will face the same situation [as last year] come December this year, because urea is used in fertiliser as well … and we’re seeing globally with food supply issues, it has a knock-on effect with higher demand for fertiliser.

  “Also with the Incitec Pivot plant winding up, I’m concerned we’ll just have the same problem 12 months later regarding AdBlue supply.”

Mr O’Hara said it was essential to have a plan to produce AdBlue domestically.

  “One thing that’s clear is that worldwide there’s a shortage of AdBlue, and relying on shipments from overseas may not be sufficient,” he said.

  “We can’t turn it off, so half of Australia’s truck fleet would have to pull up, and we certainly don’t want to see that happen during a supply chain crisis.”

  He said the Morrison government’s Incitec Pivot grant was a “stop gap measure” that simply “kicked the can to the end of this year”.

  “Something needs to be done,” he said. “We need the means to produce it ourselves through government subsidies or whatever … to ensure we continue to produce it locally – it’s something we need to do,” Mr O’Hara warned.

  “We don’t want to find ourselves in the same situation again where we suddenly find ourselves with literally a few weeks’ [supply] up our sleeve.”

  Victorian Farmers Federation president Emma Germano agreed.

  “Our reliance on imported inputs leaves us highly vulnerable,” she told news.com.au.