Cherkasy Azot, part of Dmytro Firtash’s Group DF nitrogen business and primarily engaged in production of chemical fertilizers, has launched a project to launch the production of AdBlue, a special additive for diesel engines used to reduce NO (nitrogen oxide) emissions.
“We are entering a growing, marginal, but very competitive market. Completion of all preparatory work for the launch of the project is expected in the first half of 2022,” the company’s CEO, Vitaliy Skliarov, said in a release.
According to the report, the expected production volume of the reagent is 10,000 tonnes per year.
At the moment, Azot has carried out preparatory work for the installation of equipment. The production of the reagent will be organized on the basis of workshop K-4, where crystalline caprolactam was previously produced.
The volume of investments will be announced after the launch of the project and will include all the necessary certification procedures.
Skliarov added that negotiations are underway with the German Association of the Automotive Industry (VDA), which developed this technology, to conduct an audit and issue a license to use the AdBlue brand. According to him, the sale of these products is planned both in the domestic and foreign markets, it is possible to increase the capacity.
According to Group DF estimates, the volume of the market for AdBlue and its analogues in Ukraine is about 35,000-45,000 tonnes per year, while today more than 60% of the Ukrainian market is occupied by imports, and Cherkasy Azot will be able to gradually replace imported products.
“AdBlue is, in fact, an aqueous solution of urea, respectively, its largest producers worldwide are nitrogen plants. It is logical that in Ukraine we will have a price advantage over competitors … We will also have a price advantage in the European market,” Skliarov said.
