PrJSC “Azot” (Cherkasy), a member of Group DF nitrogen line of business, launched an AdBlue production project. AdBlue is a special additive used to reduce the nitrous oxide emissions of diesel engines.
The company expects to produce 10,000 tons of AdBlue per year.
As of now, PrJSC “Azot” (Cherkasy) laid the groundwork to emplace, install and set up the production equipment. The solution will be produced at K-4 production plant, which was previously producing crystalline caprolactam.
Following the launch of the project, the management of the company will announce the amount of total investments that also covers the required certification.
“We are entering a growing and marginal though very competitive market. All preparatory works for the launch of the project are to be completed in the first half of 2022. We intend to produce high-purity solution strictly in compliance with international standards. Currently, negotiations are underway with the German Association of the Automotive Industry (VDA), which developed this technology, to audit and subsequently license the use of AdBlue brand. With the increase in sales, we will increase the output,” says Vitalii Sklyarov, Chairman of the Board, PrJSC “Azot” (Cherkasy). According to him, sales of these products are planned both in the domestic and foreign markets.
According to Group DF, the market potential for AdBlue and its analogs in Ukraine is estimated at 35,000 – 45,000 tons per year, of which more than 60% are imported. PrJSC “Azot” (Cherkasy) will eventually be able to meet Ukraine’s demand for high-purity certified diesel exhaust fluid and displace imported products.
“AdBlue is, essentially, an aqueous solution of urea; consequently, nitrogen plants are its largest producers worldwide. It should come as no surprise that Ukraine will have a price advantage over its competitors. We are the producers of the main raw materials. We will also have a price advantage in the European market,” says Vitalii Sklyarov.
PrJSC “Azot” (Cherkasy) is a member of Ostchem nitrogen holding, which is the No. 1 producer of mineral fertilizers in Ukraine. The primary consumers of the exhaust fluid produced at the plant will include the owners of agricultural and specialized vehicles, as well as trucks and cars.
“Ukraine faces a global challenge to reduce emissions from vehicles. But unless diesel cars are still driving our roads, we must take care to reduce their footprint and protect the environment against hazardous emissions”, – emphasized Vitalii Sklyarov.
As it was previously reported [1], OSTCHEM RETAiL started offering diesel fuel as part of a one-stop-shop strategy for farmers.
AdBlue (also known as DEF, Diesel Exhaust Fluid, AUS32) is a 32.5% solution of urea in deionized water, produced under VDA brand. The main consumers of the exhaust fluid include cars, special purpose and agricultural machinery. Special equipment built into diesel vehicles injects AdBlue into the exhaust system in order to reduce emissions of hazardous substances into the atmosphere. It is the requirement of Euro 5 and Euro 6 emission standards to equip automobile exhaust systems with special environmentally-friendly equipment that uses additives to reduce emissions. As a rule, the exhaust fluid is topped up into the AdBlue filler installed on the trucks and cars during the regular service. Cars that use AdBlue are equipped with an electronic system that does not allow you to run the car without this fluid, making it impossible to bypass the emission standards.
Worldwide, AdBlue production is standardized by the Automotive Industry Association (VDA), which develops this technology and issues licenses to manufacturers to produce the exhaust fluid. At the end of the last year, the Association reported a shortage of AdBlue in the world due to a sharp increase in gas prices.