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AdBlue Price Increase Imminent

Changes in raw material cost will massively affect the UK's AdBlue market

Due to increased energy costs, the expenses involved in urea production have soared to almost twice that of last year, this is now being reflected on to end users

in order to reduce your nitrous oxide emissions, AdBlue can be used.

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 fluid is passed through the SCR and into the exhaust. 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 method is exhaust gas recirculation but many feel this other technology may not meet future requirements.

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.

with the recent change in the euro exchange rate, British suppliers are even worse off than before.

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. Transport costs continue to rise and are higher than ever.

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.

buying in bulk is not recommended due to the short shelf life of the product.

One thing is for certain, transportation costs will continue to rise until pollution levels reach an acceptable level.

Article Source: http://www.freeforallarticles.com

Having been involved as a leading consultant engineer within the refuelling equipment sector for over a decade with over half served of this term in first hand AdBlue product development, the author has massively influenced the UK Market.