KCC, South32 ink 1st sustainability-linked COA
KCC Chartering AS, part of Norwegian shipping company Klaveness Combination Carriers (KCC), and South32 Marketing, a subsidiary of Australian mining and metals company South32, have signed a contract of affreightment (COA) for shipments of caustic soda to South32’s Worsley Alumina refinery located in Western Australia.
As explained, the six-year COA establishes a framework for how KCC and South32 will work together to deliver further reductions in carbon emissions associated with South32’s caustic soda ocean freight to Australia.
The agreed sustainability framework includes detailed CO2 emission reporting and the establishing of trajectories for annual CO2 reductions targets, and arrangements for how to co-operate to reach the set targets. It further includes an ambition to jointly establish a pathway towards future zero-emission freight.
“This contract marks another important milestone in the longstanding relationship between South32 and KCC. In this next era of our relationship, together we will address the main challenge of our generation – climate change,” Engebret Dahm, KCC’s CEO, commented.
“We have jointly set ambitions to considerably reduce shipping carbon emissions through building on KCC’s low carbon caustic soda shipping solution, which already today provides South32 with a 30-40% lower carbon footprint than competing tanker vessels.”
“We are pleased to continue our relationship with KCC and our joint efforts to reduce greenhouse gas emissions in the maritime supply chain. It’s partnerships like these that contribute to the decarbonisation of our value chain and promote the responsible production of commodities needed in a low-carbon world,” Brendan Harris, South32 Chief Human Resources and Commercial Officer, said.
“At South32, we are committed to achieving net zero operational carbon emissions by 2050 and have set a medium-term target to halve these emissions by 2035.”
KCC owns and operates eight CABU and eight CLEANBU combination carriers. The units are built for transportation of both wet and dry bulk cargoes, being operated in trades where the vessels efficiently combine dry and wet cargoes with minimum ballast.
Through their high utilization and efficiency, the vessels emit up to 40% less CO2 per transported ton compared to standard tanker and dry bulk vessels in current and targeted combination trading patterns.
The company targets a carbon-neutral operation within 2030 and has ambitions of reaching a zero-emission operation within 2050.