Domestic manufacture for diesel exhaust fluid additive will be a key part in making the road transport industry more resilient, with the federal government unveiling a new grants program.
The $16.15 million Maintaining Our Supply of Diesel Exhaust Fluid (MOSDEF) grants program encourages Australian industry to produce Technical Grade Urea (TGU) domestically, or DEF from means other than imported TGU.
DEF, known widely by its trade name ‘AdBlue’, reduces harmful nitrogen oxide emissions from diesel engines.
The fluid is made by blending TGU with de-ionised water and is mostly consumed by the long-haul trucking fleet in Australia.
Last summer, tight TGU supply led to concerns about Australia’s domestic supply chain and its overreliance on imports.
Under the MOSDEF grants program, the government aim to reduce this vulnerability by supporting manufacture of ISO 222421-compliant DEF or TGU.
Minister for Climate Change and Energy Chris Bowen said the grant program was part of the government’s approach to secure the supply of TGU here at home.
“The grant program will support the sovereign manufacture of Diesel Exhaust Fluid and Technical Grade Urea in Australia, and make our trucking industry more resilient,” Minister Bowen said.
“This funding will protect households, business and industry from further disruptions and bolster stock holdings of TGU. But most importantly, it will keep our transport and freight sectors moving,” he said.
Grant recipients can receive up to $16.15 million under the 4-year program, which will fund up to 50 per cent of project costs, from facilities central to existing DEF infrastructure and logistics.
The Albanese Government also announced that it is making the local DEF market more secure by creating a government-controlled stockpile of 7,500 tonnes of TGU for an additional five weeks of supply beyond industry stock levels in the event of a supply shortage.
It is also implementing a transparency system for collection and publication of data provided by industry.
Maintaining Our Supply of Diesel Exhaust Fluid applications are open until 31 January 2023.