How your taxes stopped Australia’s diesel engine crisis

The fuel additive crisis is OVER (for now): Australia is finally ramping up production of the chemical that allows the country’s trucks to run on three MILLION liters of AdBlue

  • Incitec Pivot announced an 800% increase in AdBlue diesel fluid production
  • Fertilizer Company Now Produces Three Million Liters A Week Of Additive
  • The federal government gave Incitec $29.4 million to ramp up production of AdBlue
  • The company announced in November that it would close the Brisbane plant in December 2022










Australia’s diesel engine crisis was averted after a chemical company used a $29.4 million federal government grant to boost production of a key additive.

Incitec Pivot has announced that production of AdBlue has jumped 800% since it struck a financial deal with taxpayers shortly before Christmas, saving Australia from a transport disaster.

Without AdBlue, a diesel engine additive, half of Australia’s latest truck models won’t start, with many four-wheel-drives and utility vehicles getting stuck.

Even before the Omicron crisis escalated, a shortage of AdBlue was causing problems with transport logistics, with supermarkets running out of essential goods even before thousands of supermarket workers were forced to self-isolate.

As recently as November, Incitec Pivot announced it would close its Gibson Island fertilizer plant in Brisbane in December 2022, blaming high natural gas prices.

The $6.5 billion company is Australia’s only producer of technical-grade urea, the key ingredient needed to make AdBlue, which modern engines need to reduce nitrogen oxide pollution .

Australia’s diesel engine crisis was averted after a chemical company used a $29.4 million federal government grant to ramp up production of a key additive. Incitec Pivot has announced that production of AdBlue has jumped 800% since it struck a financial deal with taxpayers shortly before Christmas.

But chief executive Jeanne Johns announced Monday evening an 800% increase in AdBlue production, thanks to federal government assistance.

“Our expert teams have worked tirelessly throughout the holiday season to expand our nationwide AdBlue manufacturing and distribution capacity,” she said.

In the week to January 23, AdBlue production was 800% higher than in early December.

Ms Johns thanked Prime Minister Scott Morrison and Energy Minister Angus Taylor for the increase in AdBlue production.

“With great support from Prime Minister Scott Morrison, Industry Minister Angus Taylor and the Federal Government, we have been able to use our world-class manufacturing, distribution and supply chain expertise to play a important in increasing the supply of AdBlue for the country. .’

Just six weeks ago, on December 9, Mr Taylor revealed that Australia only had 15 million liters of AdBlue in stock, which would only be enough to last until mid-January.

On December 20, the Ministry of Industry and Energy confirmed that Incitec Pivot would receive a $29.4 million grant to produce 5,000 tonnes per month of technical-grade urea, starting in late January. 2022, for national AdBlue manufacturers.

Incitec Pivot CEO Jeanne Johns (right) thanked Prime Minister Scott Morrison (left) and Energy Minister Angus Taylor (back) for the increase in AdBlue production (they are pictured at Incitec Pivot's Gibson Island factory in Brisbane on December 20 last year)

Incitec Pivot CEO Jeanne Johns (right) thanked Prime Minister Scott Morrison (left) and Energy Minister Angus Taylor (back) for the increase in AdBlue production (they are pictured at Incitec Pivot’s Gibson Island factory in Brisbane on December 20 last year)

Even before the Omicron crisis escalated, a shortage of AdBlue was causing problems with transport logistics, with supermarkets running out of key products even before thousands of supermarket workers had to self-isolate ( pictured are empty shelves in a Coles supermarket on the Gold Coast)

Even before the Omicron crisis escalated, a shortage of AdBlue was causing problems with transport logistics, with supermarkets running out of key products even before thousands of supermarket workers had to self-isolate ( pictured are empty shelves in a Coles supermarket on the Gold Coast)

The subsidy to Incitec Pivot, to manufacture 5,000 tonnes of technical grade urea, would be enough to produce 15 to 17 million liters of AdBlue to meet “normal monthly demand in Australia”.

Under the production expansion agreement, Incitec Pivot will produce 3 million liters of AdBlue per week.

But Ms Johns has not committed to making AdBlue beyond December 2022, with no mention of continued production for years to come.

“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,” she said.

Mr Taylor thanked Incitec Pivot for keeping the Australian supply chain running.

“I thank Incitec Pivot for stepping in as we work together to keep our trucks fueled and Australian diesel motorists on the road,” he said.

In the week to January 23, AdBlue production was 800% higher than it was in early December (pictured is an image of an AdBlue tank on a diesel car)

In the week to January 23, AdBlue production was 800% higher than it was in early December (pictured is an image of an AdBlue tank on a diesel car)

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