AdBlue Prices Set To Rise Across Europe |
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| Topics: AdBlue
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Robin Futcher
28 March 2008
Recent increases in gas and oil prices over the past few months have started to affect the AdBlue Market.
For those of you who are not already familiar with the concept, AdBlue is used as a reagent to reduce the harmful emissions from a diesel vehicles engine.
AdBlue is a trade name for AUS32, an automotive urea solution.
In order to use AUS32, the vehicle must be equipped with an SCR (selective catalytic reduction) unit. The SCR allows the AUS32 solution to be passed from the storage tank into the vehicles exhaust gases. AUS32 is made using Urea mixed with De-ionised water.
Many vehicle manufacturers across Europe have embraced this new technology to ensure that their vehicles meet new European standards, Euro 4 and Euro 5.
An alternative type of technology is available, EGR (exhaust gas recirculation) but sceptic fear it may not be able to meet the strict demands of future European legislation.
As with many other industries, recent increases in gas and oil prices over the past few months have started to affect the costs involved in producing the automotive solution.
Considering the primary component is Urea and the continuing increases in energy costs have driven up the cost of production in plants across Europe. Several leading manufacturers of the solution have started to make changes already to compensate for the increased cost of production.
These factors, when combined with the sharp change in the Euro exchange rate are likely to take their toll on British suppliers of the product, and many more are yet to reflect these changes on to their customer base.
This radical change in the price couldn't have come at a worse time, considering the price of diesel at the pump often exceeds one pound per litre. Heavy goods vehicle running costs are at an all time high.
Admittedly, drivers and fleet owners will still benefit from the savings to be made when running SCR equipped vehicles but even still it is only a matter of time before haulage rates are increased which will no doubt affect most markets.
Inevitably cost savings will need to be made elsewhere, fortunately SCR equipped vehicles will continue to avoid London's recent high emissions tax and other European cities which are expected to follow suit (Birmingham, Paris and Milan) will also offer some comfort to modern fleet owners.
This news has sparked some panic buying amongst the larger fleet owners, but with a shelf life of somewhere between 6-18 months, most consumers of the product have decided against the need to buy in bulk.
One this is for certain, the cost of transportation will almost certainly continue to rise until the impact on our environment can be controlled effectively.