The federal government has launched a $16.5 million grants program aimed at keeping Australian trucks moving by promoting the domestic manufacturing of diesel exhaust fluid additives.
The Maintaining Our Supply of Diesel Exhaust Fluid (MOSDEF) grants program seeks to encourage the Australian industry to produce Technical Grade Urea (TGU) domestically.
DEF, also known widely by its trade name ‘AdBlue’, reduces harmful nitrogen emissions from diesel engines.
The exhaust fluid is manufactured by blending TGU with de-ionised water and is mostly consumed by Australia’s long-haul trucking fleet.
Some passenger vehicles, including cars and large buses, as well as agricultural, mining, and other off-road equipment, also rely on DEF.
Australia faced shortages in TGU supply last summer, raising concerns about domestic supply and overreliance on imports.
Minister for Climate Change and Energy Chris Bowen said the grant program is part of the Albanese government’s approach to secure the supply of TGU in Australia.
“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,” the minister said.
In addition to protecting households, businesses, and industry from further disruptions, the program will also keep Australia’s transport and freight sectors moving, Bowen said in a press release.
Successful grant recipients can receive up to $16.15 million under the four-year program, funding up to 50 per cent of project costs, including facilities central to existing DEF infrastructure and logistics.
The launch of MOSDEF grant program is the latest in a series of measures aimed at restoring DEF security in the Australian market.
The Albanese government recently established a government-controlled stockpile of 7,500 tonnes of TGU for an additional five weeks of supply beyond industry stock levels. The move comes at the heels of the recent supply shortage.
A transparency system was also rolled out for the collection and publication of data provided by industry.
Applications for the MOSDEF grant program are open until 31 January 2023 and can be accessed through this link.
