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Birmingham Post
Birmingham Post
Business
David Laister

Emission-busting AdBlue price hike as gas costs soar for producer Yara

Soaring gas costs have triggered a hike in the price of emission-busting transport fuel solution AdBlue and other industrial products.

Producer Yara has introduced a temporary surcharge on sales of its market-leading Air1 brand, along with generic products ammonia, urea and nitric acid.

The Norwegian company, which has its UK headquarters in Grimsby and major port operations at Immingham, is adding more than £5 a litre to AdBlue - used by diesel cars and HGVs, bushes and coaches to ensure engines meet environmental legislation.

Read more: Port plan for carbon shipping and trading hub as Immingham taps into near North Sea storage ambition

The solution is also used in industrial processes.

It will come into force on October 1, and follows a stoppage in ammonia production due to the increased price of gas. It requires around 30 gigajoules of natural gas per tonne to produce, with the price roughly 30 times the feedstock cost.

Mr Noval said that to secure the continued supply of key products for our customers in Europe, the move was necessary.

£170 a tonne has been added to the price of ammonia, with urea at £153 and nitric acid having a £51 uplift.

Air1 comes in just under that at £49.51 per ton extra.

Mr Noval said: “We are committed to maintaining reliable supplies to our customers wherever possible. These temporary price surcharges are necessary to cover costs.”

Yara has suspended all minimum take-or-pay and exclusive supply obligations.

The situation will be monitored monthly, he added.

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