BHP has released the world’s first bulk carrier tender for LNG-fuelled transport for up to to 27 million tonnes of its iron ore.
Introducing LNG-fuelled ships into BHP’s maritime supply chain is expected to eliminate NOx (nitrogen oxide) and SOx (sulphur oxide) emissions and significantly reduce CO2 emissions along the busiest bulk transport route globally.
Rashpal Bhatti, Vice President, Maritime and Supply Chain Excellence said that emissions resulting from the transportation and distribution of BHP’s products represent a material source of its value chain emissions (Scope 3).
“We recognise we have a stewardship role, working with our customers, suppliers and others to influence emissions reductions across the full life cycle of our products,” Mr Bhatti said.
“Through this tender, we are seeking potential partners who share our ambition of lowering emissions to the maritime supply chain.”
The tender is open to a select group of industry leaders, from ship owners, banks and LNG fuel network providers.
As well as LNG-fuelled transport for up to ten per cent of its iron ore, the tender seeks other innovative solutions that can reduce greenhouse gas emissions and increase productivity from BHP’s freight requirements.
Mr Bhatti added that the company is fully supportive of the International Maritime Organisation’s decision to impose lower limits on sulphur levels in marine fuels.
“While LNG may not be the sustainable homogenous fuel of choice for a zero-carbon future, we are not prepared to wait for a 100 per cent compliant solution if we know that, together with our partners, we can make significant progress now,” he said.
“This new tender adds to the work BHP is doing with customers, suppliers and parties along our value chain to influence emissions reductions from the transport and use of our products.”