Top 10 things you need to know about AdBlue now

THE much-publicised AdBlue shortage is beginning to take its toll on national supply chains – just in time for Christmas. 

But with many modern light commercial utes, SUVs, and four-wheel drives also reliant on Diesel Exhaust Fluid (DEF) to operate, the shortage of this valuable chemical is one that could also put a severe dent in our holiday travel plans.

Beyond that, there’s already anecdotal evidence to suggest that emergency services are bringing older vehicles out of storage to replace those unable to operate without AdBlue. Many back-up generators in major hospitals also require AdBlue to operate – as do the engines powering the firefighting trucks in many of Australia’s states and territories.

The ramifications for our agricultural and mining sectors are also obvious. Most modern heavy equipment is not designed to operate without AdBlue. The engines fitted to these vehicles simply cannot run without DEF, which means grain harvests, as well as the mining of coal (to supply power-generation facilities), could soon be halted.

With trucking fleet operators already expressing concern over the shortage of AdBlue, we take a quick look at what the next few months will look like as supplies of DEF dry up.

1. What is AdBlue?

AdBlue is the common trade name for the anti-pollution additive used in modern diesel engines (Euro4 onwards). It consists of 32 per cent refined urea – which contains high levels of ammonia – and 68 per cent deionised water, with a blue dye placed in most mixtures to identify it.

The product is used to neutralise NOx matter in diesel exhaust before it enters the atmosphere, while also substantially decreasing carbon monoxide, hydrocarbon, and particulate volumes.

Urea is also the primary component of many popular fertilisers, as well as resins used to manufacture plastics and nitrate, which is used to manufacture explosives. What’s more, it’s the base ingredient of a wide range of beauty, pharmaceutical and medical products.

2. Why is there a shortage?

Almost 90 per cent of Australia’s DEF supply comes from China. The country recently curtailed exports of refined urea products, including DEF, as it sought to protect its own supplies. 

Earlier this month, the National Road Transport Association (NRTA) CEO Warren Clark said it was not immediately clear why China had decided to “switch off” exports of DEF and refined urea. He suggested the decision could be part of an on-going trade war or a move to curb food inflation.

“We’ve heard things like the cost of fertiliser in China has gone up dramatically and a large portion of that is urea. So, what they’ve said is that they do not want to export any urea to try and keep the price of local fertiliser down,” Mr Clark explained.

“It may (also) be that there’s some sort of trade issue that they’ve got with other countries around the world,” he added.

China supplies over 80 per cent of the Asia-Pacific region’s refined urea.

3. Does Australia make its own AdBlue?

Like a lot of things, Australia used to manufacturer much of its own refined urea (the active ingredient in DEF) on a large scale. But as it become more cost effective to import the substance from overseas markets, local production facilities have largely been closed.

Incitec Pivot is Australia’s only manufacturer of DEF and currently supplies around 10 per cent of the market. However, in November this year, the company announced that it would cease manufacture of the product from December 2022 after failing to secure a gas supply deal. 

The decision means Australia will soon be entirely reliant on the importation of refined urea, AdBlue, and many other associated products (such as fertiliser).

In a statement, Incitec Pivot said it would attempt to boost production of DEF before the facility was closed.

“We are committed to supplying our domestic customers' requirements and are investigating ways in which we can increase manufacturing capacity of the urea used to make AdBlue over the next few months. We are working closely with our customers and keeping them updated,” it said.

4. What will happen if we can’t get AdBlue soon?

We’ve already seen an escalation in the price of AdBlue, with reports of a litre of the chemical, which normally retails for around one dollar, now priced between three and six dollars per litre.

Supply rationing is also prevalent in major centres; the amount of DEF a customer can purchase with each fill-up has been limited and some rural locations have run out of stock entirely.

“It’s not just Australia that’s being impacted by this… the whole world is going to be impacted by the lack of this AdBlue chemical,” Mr Clark warned recently. “This could be a very big issue for the whole country… a large portion of modern diesels rely on AdBlue to operate. 

“We’re talking about trucks, tractors, harvesters (and) we’re talking about power generation in South Australia – the whole country is going to be impacted if we don’t solve this lack of supply.

“We believe that there’s enough supply of (AdBlue) until about February next year. If this is not solved by then, then we have a major problem,” he added.

5. Can’t we just “switch off” the AdBlue function?

Some vehicles will allow the bypassing of emissions-reducing functions, whereafter they will operate at a reduced capacity. However, most vehicles do not. 

Switching off this function is not as simple as it sounds. Apart from the damage that diesel engines would sustain as a result thereof, which is likely to lead to warranties being voided, such a decision would have a dire impact on public health as well as the environment. 

At present, it’s also illegal to bypass DEF systems. A government decision would be required to temporarily suspend such rules, but with parliament not meeting again until February 8, many operators fear this option has now passed us by.

The NRTA estimates nearly half a million trucks in Australia rely on AdBlue to operate. Many of the most popular passenger vehicles also require DEF to operate – and cannot be started without a sufficient supply.

DEF bypass systems are available. The Selective Catalytic Reduction (SCR) process used to reduce pollution can effectively be “switched off” through the vehicle’s engine management software (remapping) or by installing an in-line “defeat” module. However, as the SCR system is a complex system of electronic sensors, modules and pumps, such measures are strongly discouraged. 

The SCR system can be severely damaged if the engine is run without DEF, which may lead to significantly increased repair costs and, in some cases, catastrophic engine failure. 

6. How do I know if my vehicle requires AdBlue to run?

Outside of the heavy vehicles used agricultural, mining, and transport industries, a significant number of diesel-powered passenger and light commercial vehicles require DEF to operate.

If you own or drive a Euro6-compliant diesel-powered vehicle, chances are it needs an additive such as AdBlue to operate. Most diesel-powered European passenger vehicles – including Audi, BMW, Citroen, Jaguar, Land Rover (and Range Rover), Mercedes-Benz, Peugeot, Renault, Skoda, Volkswagen and Volvo – require a minimum amount of DEF to even start.

Many top-selling utes and four-wheel drive vehicles also need AdBlue to operate.

If you’re unsure if your vehicle is affected by the current AdBlue shortage, consult your vehicle’s owner’s manual or contact your local service centre. As some premium vehicle importers have secured independent supplies of DEF, you should contact your local service centre as soon as possible. Petrol-powered cars do not require AdBlue to operate, fortunately.

7. Can I safely drive my vehicle without AdBlue in the tank?

The short answer is no. 

Sensors are fitted throughout different stages of the SCR system. If a vehicle detects there is no DEF in the tank – or if it recognises that the SCR system has been violated in some way – it may place the engine into “limp mode”.

Limp mode will result in the vehicle delivering limited power (and acceleration). In some cases, it may cause the engine to shut itself down entirely until the cause of the issue has been rectified.

8. Is the government doing anything to secure AdBlue supplies?

The government is looking to source DEF from other urea-producing markets, including Indonesia, Qatar and Saudi Arabia – but so too are the governments of other countries who were previously dependant on imports from China.

South Korea recently signed an agreement to purchase 120,000 tonnes of refined urea from Indonesia each year for the next three years. Other countries are doing the same, prompting comments from some groups who say that the Australian Government has not acted quickly enough to protect local supplies.

The Australian Trucking Association (ATA) chief of staff Bill McKinley said several approaches are necessary if the effects of diesel exhaust fluid shortages are to be mitigated, including a domestic ban on urea exports.

Mr McKinley also stated that immediate action by the Department of Foreign Affairs and Trade (DFAT) to provide support to Australian diesel exhaust fluid (DEF) suppliers in their efforts to source urea was required, including restarting the flow of supply from China immediately.

A spokesperson for Deputy Prime Minister and Transport Minister Barnaby Joyce said this week that the government was encouraging industry operators to continue operating as normal.

“The government is aware of the concerns around the supply and availability of AdBlue and is continuing to monitor the situation while working with industry,” the spokesperson said.

9. When is the AdBlue situation likely to improve?

Energy Minister Angus Taylor admitted last week that Australia's existing supplies of urea would only last for another five weeks (until late-January). 

While fresh imports of DEF are already on their way to Australia, it’s understood these would only bolster supply by a further 10-14 days, meaning the situation we’re in presently is likely to repeat itself at the beginning of February.

Until such time as an alternative supply of DEF can be secured – or until local manufacturing of the product is reinstated – the shortages experienced are set to continue.

10. What other industries are likely to be affected by the AdBlue shortage?

The simple answer is that if it runs on diesel, there’s a good chance it needs AdBlue to operate. 

The following list details just some of the industries now reliant on DEF to function.

Agriculture – harvesters, tractors and related machinery are diesel-powered – most modern implements require DEF to operate. Irrigation pumps, generators, some milking systems and all related agricultural transport services are also affected.

Aircraft Refuelling – apart from some light aircraft, planes do not operate on diesel, but the ground power units and trucks used to supply aircraft and to load and unload baggage, catering and freight, do. This could cause interruptions of flight schedules.

Courier, Freight & Post Logistics – this one probably speaks for itself, but with many courier and freight companies employing modern turbo-diesel engines, the chances that your next delivery is delayed is looking very likely. Australia Post vehicles all require DEF.

Defence & Emergency Services – most of our Police, Fire and Ambulance vehicles are diesel powered and require DEF to operate. This includes State Emergency Service vehicles, towing- and heavy haulage vehicles and all regional fire service vehicles. Most of the ground vehicles used in the Australian Defence Force are also reliant on DEF.

Mining – the mining sector relies on a lot of diesel-powered vehicles to operate, but it also uses diesel-powered generators in remote areas to supply power to vehicles, the mines themselves and to accommodation and associated personnel infrastructure.

Power Generation – large-scale power generation in some states, and back-up units in others, rely upon modern diesel engines to operate. Emergency back-up power generators in hospitals, supermarkets and major shopping centres may also be affected.

Water Supply & Treatment – while most water-supply and treatment plants use electric power, some remote facilities are diesel-operated. Furthermore, most back-up pumps are powered by diesel engines, the majority of which require DEF to operate.