New Zealand production of AdBlue is being ramped up at the Ballance Agri Nutrients Kapuni plant in Taranaki as international supplies remain tight.

And NZ distributors say there is sufficient supply – providing users don’t panic buy.

A halt on urea exports from China last year has sent AdBlue/DEF fluid manufacturers scouring the globe for automotive grade urea – the raw material needed to make the AdBlue used in the emissions control systems of modern diesel engines.

Ballance Agri Nutrients says it has increased local production of its GoClear-branded AdBlue while other local distributors are searching global supply chains for alternative sources. Indications are China will remain closed as a source of urea until at least the end of next month. 

Ballance business manager – industrial products, Kate Davies, says it’s important to avoid panic buying or other actions that could stress the market: “We are seeing high demand and we have ramped-up production. We are running at more than double our normal output (at the Kapuni plant),” she says.

“The key message is that we are continuing to see the urea market globally is unbalanced and there is a real shortage of automotive grade urea.”

Ballance uses natural gas at the Kapuni plant to manufacture urea. It makes the GoClear product, which is distributed by Ixom.

Until last year GoClear was a relatively small player in the NZ AdBlue market, before Ixom purchased the SCR Solutions distribution network.

“It’s important that the market doesn’t become distorted by panic buying or by people buying AdBlue to send to Australia,” says Davies.

“We are a farmer-owned co-operative, so our loyalty is to the NZ primary sector and the supply chains that support it.”

Ixom’s NZ general manager, Sean Eccles, says it has a resilient supply of AdBlue and is well placed to meet local demand: “We work hard to maintain multiple supply channels, with both imported and locally-produced product, to ensure continuity of supply to our customers.

“Most people understand that there is sufficient product available. We’d like to thank the end users of AdBlue – truck drivers, bus drivers and farmers – and our customers, for their collective response; most are purchasing product in line with their normal buying patterns.”

DGL Manufacturing (DGL), which produces and markets the AdBlue by Chempro brand in NZ, says it is also seeing higher demand and is fielding inquiries from new customers.

Jono Kney, sales and marketing manager for DGL, says: “We have got stock for our existing customers till the end of March, and we are in the process of securing raw materials from alternative sources.” 

DGL currently supplies roughly one-third of the NZ market. The country’s estimated annual usage of AdBlue is in the region of 32 million litres. 

In Australia, where the shortage of AdBlue has had significantly more general media coverage, the federal government is supporting fertiliser manufacturer Incitec Pivot to increase production at its plant near Brisbane.

Prior to the AdBlue supply issue, the plant – the only Australian factory producing automotive grade urea – had been earmarked for closure at the end of 2022.