Oldendorff is among a group of shipping companies exploring the use of biofuels for refueling to reduce carbon emissions, as stricter international shipping environmental rules loom.
“A test flight using biofuels of CBH Group, Western Australia’s largest agricultural cooperative, is being conducted on Edwine Oldendorff from Australia to Vietnam,” Oldendorf said on his website Jan. 10.
Oldendorf said the ship carried 30,000 metric tons of sustainably certified fermented barley from the Albany Green terminal in Western Australia for offloading in Vietnam using an advanced blend of biofuels, supplied by BP. The fermented barley will be delivered to Vietnam’s Intermalt, which serves several fermentation clients, including Heineken.
Oldendorf said the combination is expected to result in 15% less emissions than conventional fossil fuels according to BP.
“Customers around the world are increasingly seeking sustainable products, including sustainable grains,” said Jason Craig, CBH’s Head of Marketing and Commerce. “Biofuels are one of the low-carbon options and could be part of the solution to reducing emissions in the shipping industry.”
CBH sold 1.2 million metric tons of certified sustainable grain in 2020-2021, and reduced carbon emissions in band 1 and 2 on a per metric ton basis by 38%.
Oldendorff has experimented with biofuels in the past. Last year, the company successfully conducted the first marine biofuel trial involving an oceangoing vessel in Singapore, in collaboration with BHP Global Resources, pioneer in advanced biofuels GoodFuels and the Singapore Ports and Maritime Authority.
Cooperation to accelerate decarbonization
Shipping has made progress by creating various alliances, such as the Getting to Zero Coalition and the Global Center for Marine Carbon Decarbonization, or GCMD, to address the carbon footprint of the industry through the development of various carbon-neutral fuels and other initiatives, following the IMO’s initial greenhouse strategy.
The International Maritime Organization has agreed to reduce the carbon intensity of the global fleet by 40% by 2030, compared to 2008 levels, and reduce greenhouse gas emissions by 50% by 2050.
“We believe ocean shipping should and can fully decarbonize by 2050,” Soren Toft, CEO of Mediterranean Shipping, said at an industry event organized by DNV on January 11th. , we [shipping industry] We also need to start working now because we can’t be in a situation where all of our assets suddenly become unusable.”
Private and public partnerships are essential for the industry to provide the required funding and regulatory framework to move projects and trials forward.
GCMD CEO Lin Lo said at the event that GCMD is an example of public-private partnership, with the Maritime and Ports Authority of Singapore among its founding partners.
“The idea is that we move together so that we fail, we succeed, and we learn faster,” Lu said.
Collaboration is required from other sectors, such as aviation, which needs SAFs derived from biomaterials and biomass, to accelerate shipping decarbonization, as this will reduce duplication of efforts, pool resources and build appropriate infrastructure, according to her.
Sustainability-related and transition-related financing are also essential to accelerating marine decarbonization, said Marthi Lamb-Sandvik, Vice President of Marine Industries at DNB, stressing the importance of inclusive financing for small players who lack the resources required to achieve net-zero targets.
“The industry is asset-heavy and has a lot of emission-reduction potential,” Sandvik said. But at the same time, small and medium-sized businesses may not be heavyweights. Therefore, they may not have the administrative resources to report externally to the large number of partners they work with in this sense.”
Sustainable financing comes with greater reporting requirements and “you have to be able to demonstrate that you have an impact,” she said.