The federal government has signed an agreement with fertiliser manufacturer Incitec Pivot Limited (IPL) to significantly increase the production of local urea.

Urea is a critical component of diesel exhaust fluid AdBlue, which is used in diesel engines in trucks, large passenger buses, mining equipment, and agricultural vehicles.

Angus Taylor, Minister for Industry, Energy and Emissions Reduction, said the announcement will provide the trucking industry with certainty.

“Australia currently has adequate stocks of AdBlue stock on hand, but this agreement with IPL will enable domestic production of TGU or supply of an AdBlue product to domestic manufacturers to ensure current supply chain disruptions don’t impact on Australian businesses.”

The agreement will see IPL undertake a manufacturing assessment to produce technical grade urea and expand production at its Gibson Island Plant in Brisbane.

Taylor and Jeanne Johns, CEO and MD of IPL, said the ramping up in production will not impact the supply of fertiliser grade urea for Australian Farmers.

Currently IPL’s Brisbane Gibson Island plant produces mostly fertiliser grade urea, with a small portion used to make AdBlue solution, supplying around 10 per cent of the Australian market.

“We’re very pleased our domestic manufacturing expertise can be mobilised and we’re working together with the Federal Government to expand supply of this critical material that we all rely on to keep Australia moving,” said Johns.

Australia has also managed to secure 5000 tonnes of refined urea, roughly a month’s worth of AdBlue, from the Indonesian Government, which will arrive in January.

Dan Tehran, Minister for Trade, Tourism and Investment, said Australia is leverage its strong relationships with international partners to open new supply sources to meet our future needs for refined urea.

“By working closely with our partners, we have been able to secure this critical supply for Australia. We will continue to strengthen our close relationships around the world to support and further Australia’s interests.”

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