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IPL increases AdBlue production: report

Local production and distribution of diesel exhaust fluid hits new high

27 Jan 2022

INCITEC PIVOT LIMITED (IPL) has announced that it has reached a new production milestone of three million litres of diesel exhaust fluid (DEF) this week. 


The Brisbane-based company has scrambled to address the ongoing shortage of the vital diesel-fuel emissions commodity – known commonly by its trade name, AdBlue – since shortages were first reported at the end of last year.


The newly announced figure means Australian suppliers now have access to almost eight times the supply of DEF available last month (December). The government-backed firm ramped up production of the chemical after overseas supplies were all but shut-off late last year.


According to a report published in Trailer Magazine this week, IPL has pulled out all the stops to ensure that its Gibson Island facility can meet national demand for DEF. The chemical is a vital element in the operation of diesel-powered vehicles across freight, mining, agricultural, and numerous other sectors.


“Our expert teams have been working non-stop throughout the holiday period to expand our domestic AdBlue manufacturing and distribution capability,” IPL Managing Director & CEO Jeanne Johns told Trailer Magazine.


“We are pleased to have reached the milestone of producing and distributing just over three million litres of AdBlue in the seven days ending on Sunday January 23 – (that marks) a massive 800 per cent increase compared to the amount we were producing in early December.”


Ms Johns said the situation would not have been resolved without governmental support and acknowledged the efforts of the Prime Minister, Industry Minister, as well as her ICL colleagues.


“Thanks to the great support from Prime Minister Scott Morrison, Industry Minister Angus Taylor and the Federal Government, we’ve been able to use our world-class manufacturing, distribution and supply chain expertise to play an important role in increasing AdBlue supply for the nation. 


“To achieve this milestone safely in record time is a fantastic achievement. I’m incredibly proud of our team who have worked tirelessly over the Christmas and New Year period to help address a national shortage of this critical product.


“The hard work will continue as we aim to further increase production of AdBlue at Gibson Island in the coming weeks and months to meet Australia’s needs,” Ms Johns said.


According to the Trailer Magazine report, IPL’s three-million-litre milestone follows the commissioning and completion of production and distribution facilities, increased quality assurance testing capabilities, and the addition of a new Brisbane AdBlue Terminal, which is capable of loading up the equivalent of three B-double vehicles per hour.


“We have been working with wholesalers on demand forecasts to support ongoing distribution of the increased volumes of AdBlue through their network,” Ms Johns explained. “We thank them for their support and look forward to continuing to work together as we increase production.”


The changes mean liquified AdBlue may now be directly supplied to wholesalers for distribution to the retail network. IPL says it has also taken steps to ensure there are no impacts on its fertiliser urea supply, which is used by the agriculture industry and relied on by farmers.


IPL told Trailer Magazine that once Australia’s AdBlue supply shortage was less critical, it would undertake a manufacturing assessment to produce technical grade urea – a granulated (non-liquid) form of urea that can be supplied to Australian AdBlue blenders to manufacture DEF.

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