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What is the Maintaining Our Supply of Diesel Exhaust Fluid Program?
The Maintaining Our Supply of Diesel Exhaust Fluid Program is a grant opportunity to help businesses to manufacture and supply Technical Grade Urea (TGU), TGU-equivalent product or DEF for the domestic market.
Background
The Maintaining Our Supply of Diesel Exhaust Fluid Program will run over 4 years from 2022-23 to 2025-26. The program is part of the Australian Government’s $49.5 million comprehensive investment to enhance resilience of the domestic Diesel Exhaust Fluid (DEF) market. Modern diesel engine technology will not operate without DEF. It is used to control nitrogen oxide pollutants which are harmful to human health and the environment. DEF is manufactured by blending Technical Grade Urea (TGU) with de-ionised water. Australia is reliant on imports of TGU from the global market for the domestic production of DEF. In late 2021 and early 2022, global supply pressures highlighted limited flexibility in the TGU market in Australia. This had the potential to cause harmful economic impacts through disruption of Australia’s diesel dependent transport and logistics system – in particular heavy trucking and other modern diesel engines that require DEF to operate.
Objectives
The objectives of the competitive grants program are:
- to support sovereign capability in manufacturing to produce TGU for the domestic DEF market in the period 2023 to mid-2026
- produce TGU that is compliant with the ISO 22241 specification for the production of DEF, or as certified by Original Equipment Manufacturers (OEMs) for use as a DEF.
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Funding
The Australian Government has announced a total of $16.15 million in administered grant funding over four years from 2022-23 to 2025-26 for the program.
The grant amount will be up to 50 per cent of eligible project expenditure (grant percentage). There is no minimum or maximum grant amount, but grants cannot exceed $16.15 million of available funds.
Eligible Projects
You must complete your project by 30 April 2026.
Your project must:
- be located in Australia
- be a new project, which has not already commenced
- be for domestic manufacture and supply to the Australian market of TGU, TGU-equivalent product or DEF from domestic feedstocks (e.g. natural gas, ammonia, CO2), or imported feedstocks which are reliably available in Australia
- produce TGU which meets the ISO 22241 specification for the production of DEF, or;
- produce a TGU-equivalent product that demonstrates it can be used commercially as a DEF either, as specified in compliance with ISO 22241, or as certified by OEMs for use as a DEF.
You can use this grant funding for:
- plant and equipment
- labour and labour on-costs
- contract expenditure.
Eligible Applicants
You can apply if you:
- have an Australian business number (ABN)
- are registered for the Goods and Services Tax (GST).
You must also be one of the following entities:
- an entity incorporated in Australia and a trading corporation, where your trading activities:
- form a sufficiently significant proportion of the corporation’s overall activities as to merit it being described as a trading corporation; or
- are a substantial and not merely peripheral activity of the corporation
- an incorporated trustee on behalf of a trust, where your trading activities:
- form a sufficiently significant proportion of the corporation’s overall activities as to merit it being described as a trading corporation; or
- are a substantial and not merely peripheral activity of the corporation.
Need Assistance?
Call 1300 658 508
Timing
Applications close 31 January 2023.
