BHP calls tender for LNG-fuelled bulk carrier

Australia’s BHP is introducing low emissions freight as it is calling a tender for the world’s first LNG-powered bulk carrier to transport up to 27m tonnes of iron ore.

The mining giant said that introducing LNG-fuelled ships into its maritime supply chain will help to eliminate nitrogen oxide and sulphur oxide emissions, and significantly reduce carbon dioxide emissions along the busy 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,” commented Rashpal Bhatti, vice president of maritime and supply chain excellence at BHP.

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

The tender is open to a select group of industry leaders, from shipowners, 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.

“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,” Bhatti 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,” he added.

Read more: MOL and five companies launch study on LNG-fueled capesize

The latest tender comes more than two years after the signing of a ‘Green Corridor’ project involving BHP, DNV GL, Rio Tinto, Shanghai Merchant Ship Design and Research Institute (Sdari) and Woodside Energy, on studying the launch of LNG-fuelled capesize bulk carriers.

The ‘Green Corridor’ project looks to deploy LNG-fuelled capsizes to serve the route between Australia and China.

Posted 16 July 2019

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Asia Correspondent Lee Hong Liang has joined Seatrade as its Asia Correspondent. Based in Singapore, he will provide a significant boost to daily coverage of the Asian shipping markets, as well as bring with him an indepth, specialist knowledge of the bunkering markets. Throughout Hong Liang’s 14-year career as a maritime journalist, he has reported ‘live’ news from conferences, conducted one-on-one interviews with top officials, and the ability to write hard news and feature stories.

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