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The demand for AdBlue and the cost of raw materials increases its price by 10%

AdBlue is an additive that is injected into the catalytic converter of vehicles with SCR technology. Its function is to neutralize the NOx gases emitted by the diesel engine, which it converts into nitrogen and water vapor. In this way, it reduces emissions that are harmful to health and the environment by 99%.

This additive, commonly used in modern cars with diesel engines, has significantly increased its price in the first months of 2021. As explained from Green Chem, the AdBlue marketer and distributor in Spain, the first quarter of 2021 closes with a 50% increase in the price of urea (€ 93 / Tn) compared to December 2020. Urea, in automotive grade, It is the essential raw material for the production of additive for diesel engines. The increase in the cost of urea has necessarily led to an increase in the sale price of AdBlue by most operators.

As explained by the company, AdBlue is made up of automotive grade urea (32.5%) and demineralized water (67.5%). Urea is a ‘commodity’ and, as such, its price is traded on spot and futures markets.

Its cost is variable and depends mainly on two factors: the price of raw materials, natural gas and coal, and the world supply-demand. Thus, when the price of natural gas rises -as has happened since the beginning of 2021-, it can be expected that the prices of urea will also increase and, as a consequence, that of AdBlue, although it does not necessarily have an impact on its sale price .

Green Chem has been completing its own price index for four years, with a clear intention of showing total transparency with the prices set in the commercialization of the additive. In the latest data, it can be seen how in March 2021, the price of AdBlue has risen by 9.6%, a figure that follows the upward trend of January and February. This increase is mainly due to an increase in the price of natural gas during the first quarter of the year. On the other hand, as a general rule, during the fertilization season (between the months of February and May), the demand is higher, which can boost urea prices and, as a consequence, also raise the price of the additive.

Even so, it should be taken into account that, despite the rise recorded in this first quarter of the year, AdBlue continues to have a reduced impact on the driver, especially compared to diesel. In fact, it is estimated that light passenger cars use an average of 2 liters per 1,000 km, some even less. This implies an average of between 10,000 and 25,000 km of autonomy before needing to fill the tank. The calculation may vary depending on the type of driving, the engine or the car model, but, in any case, from GreenChem they point out that the AdBlue refueling is much lower than that of any fuel.

What is AdBlue?

AdBlue is a compound that helps reduce polluting and greenhouse effect products derived from engine combustion. It is a liquid that does not pollute the environment, colorless, odorless and is not flammable or toxic, since it is composed of deionized water with 32.5% urea.

This additive is injected into the catalytic converter of vehicles with SCR technology. Its function is to neutralize the NOx gases emitted by the diesel engine, which it converts into nitrogen and water vapor. In this way, it reduces emissions that are harmful to health and the environment by 99%. The only case in which it could affect the performance of the engine is, precisely, to use alternative products to AdBlue that do not meet the specifications, or to run out of additive. In both cases, there is a deterioration of the ceramic catalyst that can negatively influence the combustion of the engine.

The addition of AdBlue can only be done in diesel vehicles. In them we have, next to the fuel tank inlet, an opening to fill the tank, exclusively for AdBlue. We have to fill this tank when the witness on the dashboard tells us to. It should also be borne in mind that you should not wait until it is completely exhausted, because at that moment we could not start the vehicle.

You also have to be very careful not to spill the product on the paint of the vehicle due to its high PH of 9.5, which would act as a corrosive agent. The most common is to find it in service stations, where they are sold in 10 or 2 liter containers, as well as in dealerships.

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