BHP Eyes LNG Shipments for 10 Pct of Its Iron Ore
International mining company BHP has released “the world’s first” bulk carrier tender for LNG-fueled transport for up to 27 million tons of its iron ore.
By introducing LNG-fueled ships into its maritime supply chain, BHP intends to eliminate NOx and SOx emissions and reduce CO2 emissions along the busiest bulk transport route globally.
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 noted.
As informed, the tender is open to a select group of industry leaders, from shipowners, banks and LNG fuel network providers.
As well as LNG-fueled transport for up to ten percent 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 added.
“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.”
Apart from the new tender, BHP is also collaborating with its stakeholders to cut emissions from the transport and use of the company’s products.