Sangmi Cha, Heekyong Yang

SEOUL (Reuters – South Korea flew a military oil tanker from South Korea to Australia to transport 27,000 litres urea solution. This is in the face of a severe shortage that threatens to halt commercial transportation and other industries.

Industry experts estimate that approximately 2 million diesel cars, mostly cargo trucks use the additive.

After China tightened its exports to China’s domestic market, diesel vehicle owners have panicked about buying urea. According to the trade ministry, 97% of South Korea’s urea imports were from China in January through September.

The shortage is threatening to halt delivery trucks carrying gasoline and other fuels to local gas stations, an official from one of South Korea’s major refiners said.

“If gas stations do not manage to receive sufficient amount of fuel, it could attribute to jump to logistical cost across almost all industries, which eventually could burden consumers – price increases in ordinary consumer goods.”

However, the lack of urea could also have severe consequences for South Korea’s industrial sector. This is where urea must be used to prevent pollution from stopping production.

According to the environment ministry, 34.7 percent of the 835 000 tonnes of urea that was imported into 2020 was intended for industrial purposes, while 9.8% were for automobiles and the remainder for fertilizer production in agriculture.

According to a major supplier of urea in South Korea, it was unable to import Chinese urea material since October mid-October. This had caused a decrease in South Korea’s urea solution manufacturing line operation rates.

A source within the manufacturing industry said to Reuters that there is low industrial urea inventory. This helps keep factories running.

We could ask the government for an exemption from the environmental regulations in order to reduce the shortage of urea needed to run a factory.

AUTOMAKERS ARE STRESSED

According to Lee Hang-koo (executive adviser, Korea Automotive Technology Institute), if the urea shortage continues, the auto industry, already facing a semiconductor shortage, price rises in raw material, and a lack of parts, will have difficulty getting parts from suppliers.

He stated that this could result in South Korean automakers not being able to manufacture vehicles at their factories overseas as the suppliers of their auto parts will no longer be able deliver their parts to them to shipping ports.

Moon Jae In tried to ease public fears on Tuesday by saying that there wasn’t need for excessive concern and that help was coming.

According to the government, the temporary removal of military stockspiles was done and urea has been released from its public sector stockpile.

On Tuesday, Suh Wook, Defence Minister said that the military will release approximately half of its 445-tonne stockpile for automotive urea solutions and loan it to civilians.

South Korea has secured 200 tonnes mass urea from Vietnam for this week. It is currently in discussions with other countries to obtain up to 10,000 tonnes. This would be enough to produce approximately 30,000 tonnes diesel exhaust fluid. On Tuesday, the Defence Ministry announced that Australia has received its first supply.

South Korea mandated diesel vehicles to use urea to reduce emissions in 2015. This has now been implemented on 40% of all registered vehicles.

The 2015 diesel vehicle must have a selective catalytic reduced (SCR) system. This requires the injection of urea to remove NOx from the exhaust.

The urea solution is required to make passenger vehicles start. Trucks can travel only 20 kmh (12mph) without it. This has led to desperate drivers using urea emulators or rigging their cars to get around the SCR system. Local media reports that some motorists have attempted to hack the system.