Angus Taylor says there are no more federal grants

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Although Incitec Pivot said it still planned to close its Gibson Island plant later this year regardless of the government subsidy, Mr Taylor said there were no plans to offer help financial similar to another company.

He said the federal government remains committed to working with other AdBlue manufacturers to ensure they can access supplies of technical-grade AdBlue or urea.

Temporary increase in production

“Under business-as-usual conditions, the normal AdBlue manufacturing supply chain is sufficient to meet Australia’s needs,” Mr Taylor said.

“Incitec Pivot’s production increase is only temporary and they usually only produce a small amount of AdBlue, so it’s not a major player in usual circumstances.

“Therefore, the plant closure is not expected to impact supplies on an ongoing basis once the global urea market returns to normal supply.”

Mr Taylor said the Federal Government was now considering how stocks of AdBlue could be continuously monitored because of their importance in the transport sector.

He also wrote to the Australian Competition and Consumer Commission to investigate the price gouging.

Incitec Pivot chief executive Jeanne Johns said the 3 million liters of AdBlue produced per week at Gibson Island was an increase of around 800% over what the company was producing in December.

Along with increased manufacturing capacity and 24/7 operation, there is also a new Brisbane AdBlue terminal capable of loading the equivalent of three B Double vehicles per hour for distribution.

“We have been working with wholesalers on demand forecasting to support the continued distribution of increased volumes of AdBlue through their network,” Ms Johns said.

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

Heavy Vehicle Industry Australia chief executive Todd Hacking said the peak of the AdBlue supply crisis had passed.

As part of the agreement with the federal government, Incitec Pivot will begin production trials of technical-grade urea – the key ingredient in AdBlue – in February, with an additive sourced from Germany.

If successful, Ms Johns said technical grade urea – a non-liquid granular form – could be supplied to Australian AdBlue blenders to make liquid AdBlue.

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