Securing supply of diesel exhaust fluid to keep Australia moving

15 September 2022

The Albanese Government is moving to build a stockpile of Diesel Exhaust Fluid (DEF) and build Australia’s manufacturing capacity to ensure the resilience of Australia’s trucking industry. 

The market for DEF including Adblue, has seen extreme volatility over recent times. The Albanese Government is planning ahead so the Australian transport sector can better weather volatility in the future. 

DEF is critical to the operation of trucking and other diesel vehicles, and it lowers noxious emissions which are harmful to people and the environment. 

The $49.5 million investment over four years is a comprehensive package that will enhance resilience of the market. The funding will establish an emergency stockpile of Technical Grade Urea (TGU) which is the critical component of DEF.

It will also support sovereign manufacturing capability and increase transparency in the market.

Minister for Climate Change and Energy Chris Bowen said the Australian Government was taking action to ensure ongoing reliable supplies of DEF.

“Diesel exhaust fluid is crucial to our transport sector and the Albanese Government is taking action to ensure supply and strengthen the market,” Minister Bowen said. 

“While the market is currently well-supplied, we need to put in place measures to deliver certainty and provide back-up in case of disruption. 

“We are also monitoring and engaging with industry to ensure the market is functioning properly and the supply chains are delivering.” 

The measures will include:

•    A government controlled strategic stockpile of 7500 tonnes of TGU providing an additional five weeks of supply beyond industry stock levels in case of a supply shortage.

•    A competitive grants program to support sovereign capability and manufacturing projects that will look to produce TGU domestically.

•    Collection of voluntary data provided by industry to provide market awareness of TGU and DEF domestic stocks.

The majority of DEF in Australia is used in trucks, large passenger buses, diesel passenger vehicles, and some agricultural, mining and other off-road equipment.

For further information about the government’s plan, visit www.energy.gov.au