Request for information on diesel exhaust fluid now open

15 July, 2022

Modern diesel engine technology is designed to require diesel exhaust fluid (DEF) to control nitrogen oxide pollutants.

The Department of Industry, Science, Energy and Resources is interested in better understanding the market for refined technical grade urea (TGU) which is the main component of DEF.

Since late 2021, global supply pressures have highlighted limited flexibility in the TGU domestic market. This has the potential to cause economic impacts through the disruption of Australia’s diesel dependent transport and logistics system – in particular heavy trucking and other modern diesel vehicles that require DEF.

The Australian Government has entered into a temporary supply agreement with Incitec Pivot Fertilisers Ltd (IPF) to support the Australian DEF market until December 2022.

As a next step, the Department of Industry has opened a non-binding Request for Information (RFI) process to help better understand current market operations and inform decision making. The information will contribute to an evidence base to inform the potential costs and benefits of policy approaches to help build domestic DEF market resilience.

Submissions are welcomed from existing and potential new market participants, and other interested parties.

The Request for Information aims to gather details on:

  • stocks, storage, supply chains, and market function
  • enhancing market transparency
  • domestic capability opportunities for manufacturing/production and storage.

The Department of Industry will hold an information session on the RFI in the near future.

 

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