In the context of a global shortage, Australia has announced an inventory of a key product, which may keep thousands of cars off the road.

The Australian government revealed that Australia has a key product on hand that can be used for five weeks because it tries to alleviate people’s concerns about shortages, which may keep thousands of cars off the road.

The compound urea is a key ingredient in AdBlue. It is injected into the exhaust system of modern diesel vehicles to reduce emissions and is also an important ingredient in chemical fertilizers.

The world is currently facing a shortage of urea.

Major industries warn that without it, the stability of Australia's supply chain may be in the balance, and trucks may not be able to deliver necessities such as fresh food to supermarkets.

Following a strong call from the transportation and agriculture departments, the Federal Government today revealed the details of Australia.

The company said it currently has more than 15 million liters of AdBlue on hand, which is equivalent to business-as-usual demand for nearly five weeks.

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It has been announced that multiple batches of refined urea are currently being shipped to Australia and are expected to provide the market with more than two weeks of additional supply.

These supplies will take us to February, which is a timeline that the transportation industry suspects. After that, it raised concerns about uncertain supply.

After a round table meeting with the government and industry on Wednesday called it "disappointing", the Australian Trucking Association asked the government to take immediate action to ensure supply so that truck drivers "continue to export the groceries on every supermarket shelf and Australia to our port Of the goods are delivered to our port".

"The supply of AdBlue is as important as the supply of fuel," said David Smith, president of the association.

"We need to understand Australia's material inventory and the supplier's ability to deliver the AdBlue we need in the first half of 2022.

"We have seen suppliers restrict orders or increase prices."

The Minister of Industry, Energy and Emissions, Angus Taylor (Angus Taylor) will now oversee the issue, but did not participate in the roundtable. He urged the industry to operate as usual on Thursday afternoon.

Mr. Taylor said that buying additional shares is neither necessary nor helpful.

"We are working swiftly and actively to ensure that the supply chain of refined urea and AdBlue is secure so that the industry has certainty about its operations," he said.

"I can assure Australians that the government is working hard to ensure that we will not face any shortages.

"We are taking a series of measures to respond to the global pressure on the urea market. We will keep our trucks and Australian motorists going."

Mr. Taylor also announced a new AdBlue working group.

When contacting the hypermarket on Thursday, they declined to comment on the shortage and forwarded news.com.au to transportation providers Linfox and Toll, but these companies also declined to comment.

Woolworths did say that it is closely monitoring the situation with its transportation suppliers. The Australian Logistics Commission stated that the country’s current inventory is managed by the supplier, and the supplier “is working hard to ensure that everyone can reasonably obtain it”.

Why urea shortage is important

Don Watson Transport CEO Lyndon Watson told Big Rigs that either the government will have to "magicize" some AdBlue from somewhere in the next few months, or it must allow trucks to operate without it.

"Once it is discovered that AdBlue (shortage) will not only stop all trucks, but also stop all shelf replenishment, replenishment servo systems, everyone will go,'I should really fill up my water tank and fill up my toilet paper. Everything will be. Finished in one day," Mr. Watson said.

"It will not be exhausted in a few weeks or months. People will dry their skin in one day."

Bryan Smith, CEO of Rocky's Own Transport, said that in some vehicles, you can turn off systems that require AdBlue, but you can't in some vehicles.

"If the shortage becomes severe, it could have a potentially significant impact on the freight industry," Mr. Smith said.

"We have ended this situation, which is a bit sad. I think there are two or three manufacturers for this product. Incitec is one of the larger companies."

Incitec Pivot announced last month that it will cease manufacturing operations at its main urea plant in Brisbane by the end of next year.

China used to provide 80% of Australia's urea supply, and recently stopped exports to increase domestic supply.

South Korea, which is heavily dependent on China's urea imports, reached an agreement with Indonesia this week to import about 120,000 tons of urea each year in the next three years.

David Leaney, a lecturer in international supply chain management at the Australian National University, told news.com.au on Wednesday that Indonesia will become an excellent partner for Australia for the same reasons as its partner with South Korea.

Why shortage may be an opportunity for Australia

Professor Huang Jun, an expert in chemical and biomolecular engineering, said that the production of urea in Australia is in the best interests of Australia.

He said that the current processes used to produce urea in countries such as China and Indonesia rely on fossil fuels, which is unsustainable given the expectations of reducing emissions and achieving climate goals.

China started to reduce urea production while cracking down on energy-intensive projects this year. Professor Huang said that Indonesia may also encounter problems in the future.

“If we invest more money and the government strongly supports the production of green ammonia and green hydrogen, then we will be able to produce green urea,” Professor Huang told News Australia.

"This is a great opportunity for Australia because we are one of the first countries to develop green ammonia and hydrogen energy."

Professor Huang said that the short-term import of urea from Indonesia may be a solution for Australia, but not the long-term.

"This will be a global issue, and if we can build green urea, it will be a good thing for Australia's business and industry," he said.

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