ZAP hikes AdBlue capacity in busy Poland market

26 August 2008 12:32  [Source: ICIS news]

PRAGUE (ICIS news)--Poland's ZA Pulawy (ZAP) is going ahead with plans to increase its production of diesel engine emissions reducer AdBlue from 30,000 tonnes/year to 100,000 tonnes/year, the fertilizer producer said on Tuesday.

However, achieving satisfactory domestic AdBlue sales would be difficult because Norway's Yara International had won the contract to supply the fuel component to largest Polish fuel retailer PKN Orlen, said investment bank Wood & Co.

AdBlue is a high-quality urea solution that feeds the selective catalytic reduction (SCR) catalyst on trucks, facilitating the transformation of harmful emissions from diesel engines into harmless water vapour and nitrogen.

The emissions reducer would be produced at a new 270,000 tonne/year urea installation in Poland's Starachowice special economic zone, where investors could obtain tax relief of up to 50% of qualified capital expenditure, said ZAP.

It added that it had already signed supply contracts with Polish fuel supplier Lotos Paliwa and Polish distributor Blue Solution.

The engine component allows truck drivers to meet EU restrictions on exhaust gas emissions that took effect in October 2006.

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By: Will Conroy
+44 20 8652 3214

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