Oz BHP Eyes Low Emission LNG Freight

Australian BHP July 15 released the world’s first bulk carrier tender for LNG-fuelled transport for up to 27mn metric tons of its iron ore. 

“Introducing LNG-fuelled ships into BHP’s maritime supply chain will eliminate nitrogen oxide and sulphur oxide emissions and significantly reduce CO₂ emissions along the busiest bulk transport route globally,” the company said.

Rashpal Bhatti, vice president, maritime and supply chain excellence said emissions resulting from the transportation and distribution of BHP’s products represent a material source of its value chain emissions. 

“Through this tender, we are seeking potential partners who share our ambition of lowering emissions to the maritime supply chain,” Bhatti said.   

BHP said that 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 10% of its iron ore, the tender seeks other innovative solutions that can lower greenhouse gas emissions and increase productivity from BHP’s freight requirements.

“We are fully supportive of the International Maritime Organisation’s (IMO) decision to impose lower limits on sulphur levels in marine fuels,” Bhatti said. “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% compliant solution if we know that, together with our partners, we can make significant progress now.”