AdBlue maker achieves major sourcing milestone

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Three million liters of essential emissions reduction products were distributed by a government-backed organization this week, eight times more than the benchmark rates reported in early December.

Incitec Pivot Limited (IPL) has committed to mobilizing and evaluating the expansion of AdBlue production at its Gibson Island plant in Brisbane to meet Australian needs, following limited supply from overseas markets.

IPL Managing Director and CEO Jeanne Johns said since then extensive work has been underway to ramp up production of the essential product that is needed to keep diesel vehicles on the road across Australia.

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

“We are delighted to have reached the milestone of producing and distributing just over three million liters of AdBlue in the seven days ending Sunday 23 January, a massive 800% increase from to the quantity we were producing at the beginning of December.

“With excellent 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 an important role in increasing the supply of AdBlue for the country.

“Reaching this milestone safely in record time is a fantastic achievement. I am incredibly proud of our team who have worked tirelessly over the Christmas and New Year period to help address a nationwide shortage of this essential product.

“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.”

This stage follows the commissioning and completion of production and distribution facilities. This includes new manufacturing capacity, increased quality assurance testing to 24/7 operations and a new Brisbane AdBlue terminal capable of loading the equivalent of three B-double vehicles per hour for distribution to industry.

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

“We thank them for their support and look forward to continuing to work together as we increase production volumes.”

The milestone of three million liters per week was reached by increasing the production of IPL’s existing method for manufacturing AdBlue. This allows the final product of AdBlue – a liquid form – to be distributed directly to wholesalers for distribution to the distribution network.

Importantly, IPL has also taken steps to ensure there is no impact on its supplies of urea fertilizer, which is used in the agricultural industry and relied on by Australian farmers.

When the AdBlue supply shortage in Australia is less critical, IPL plans to undertake a manufacturing assessment to produce technical grade urea – a granulated (not liquid) form of urea that can be supplied to mixers Australian AdBlue companies to manufacture liquid AdBlue.

If the manufacturing assessment is successful, IPL would produce technical grade urea, in addition to manufacturing AdBlue.

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