Federal government to act on manufacture, stockpile of diesel exhaust fluid

The federal government has announced that it will spend $49.5 million over four years in an attempt to increase security of supply for diesel exhaust fluid (DEF) critical for road freight transport.

Energy minister Chris Bowen said on Thursday that measures would involve:

•   A government controlled strategic stockpile of 7500 tonnes of TGU providing an additional five weeks of supply beyond industry stock levels in case of a supply shortage;

•   A competitive grants program to support sovereign capability and manufacturing projects that will look to produce TGU domestically; and
  
•   Collection of voluntary data provided by industry to provide market awareness of TGU and DEF domestic stocks.

“While the market is currently well-supplied, we need to put in place measures to deliver certainty and provide back-up in case of disruption, said Bowen. 

“We are also monitoring and engaging with industry to ensure the market is functioning properly and the supply chains are delivering.” 

DEF is used by modern diesel engines with selective catalytic converters. In Australia most usage is by trucks, large passenger buses, diesel passenger vehicles, and some agricultural, mining and other industrial equipment. 

It is also referred to as Adblue (the name of a popular brand.) It is a combination of one-third Technical Grade Urea (TGU) and thro-thirds deionised water.

A recent supply crunch over the Christmas holiday saw the Australian Trucking Association predict supplies disappearing by February. The former Coalition government awarded $29.4 Incitec Pivot million to shore up Australian needs.

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