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BHP, NYK advance sustainable biofuels bunkering to cut carbon emissions

Singapore — Global mining company BHP, Japanese shipping company NYK, GoodFuels and Blockchain Labs for Open Collaboration, or BLOC, Monday announced the successful delivery of sustainable biofuels to the BHP-chartered, NYK-owned bulk carrier Frontier Sky in Rotterdam.

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The advanced biofuel, supplied by GoodFuels via logistics partner Varo Energy, is a "drop-in" marine gasoil equivalent, and was blended with conventional fossil-based MGO in a mix of 30% biofuel to 70% conventional MGO, the statement said, adding that the carbon dioxide savings were verified with BLOC's blockchain fuels assurance platform.

This delivery saves over 50 tons of CO2, equivalent to the greenhouse gas emissions of about 125,000 miles driven by car, and sets the stage for further savings, driven by switching to this carbon neutral fuel, it said.

This comes at a time when environmental emissions in international shipping are gaining increased attention.

The International Maritime Organization has already adopted an initial strategy to cut at least 50% GHG emissions from the global shipping sector by 2050, compared to 2008.

The industry's proposals for mandatory auditing of ship energy efficiency management plans and further improvements to the energy efficiency design index, or EEDI, for future ships have also gathered momentum.

This move also forms an important step in the decarburization strategies of both BHP and NYK.

"NYK's reduction targets for GHG emissions are 30% per ton-km by 2030 compared with a 2015 base year, and 50% per ton-km by 2050," it said.

Meanwhile, BHP is also identifying more strategic relationship opportunities to achieve material emissions reductions, it said.

"We fully support moves to decarbonize the freight industry, including implementing IMO2020. Biofuels offer an innovative approach to more sustainable bunker fuel. It's important for us to ensure the biofuel we use is sustainably produced and traceable," Abdes Karimi, head of strategy and planning at BHP said.

--Surabhi Sahu, surabhi.sahu@spglobal.com

--Edited by Ikhhlaq Singh Aujla, ikhhlaq.singh.aujla@spglobal.com

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