BHP tenders for LNG-fuelled transport for its iron-ore

16th July 2019 By: Esmarie Iannucci - Creamer Media Senior Deputy Editor: Australasia

PERTH (miningweekly.com) – Major BHP has moved to reduce its carbon dioxide (CO2) emissions, releasing the world’s first bulk carrier tender for liquefied natural gas- (LNG-) fuelled transport for up to 27-million tonnes of its iron-ore. 

The miner said that introducing LNG-fuelled ships into BHP’s maritime supply chain would eliminate nitrogen oxide and sulphur oxide emissions and significantly reduce CO2 emissions along the busiest bulk transport route globally.

“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,” BHP’s VP for maritime and supply chain excellence, Rashpal 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 to 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 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.  

“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.”