BHP releases world’s first LNG-fuelled freight tender for shipping iron ore

BHP has released the world’s first bulk carrier tender for LNG-fuelled transport for up to 27 million tonnes of its iron ore. 

Introducing LNG-fuelled ships into BHP’s maritime supply chain will eliminate NOx (nitrogen oxide) and SOx (sulphur oxide) emissions and significantly reduce CO2 emissions along the busiest bulk transport route globally.

Emissions resulting from the transportation and distribution of BHP’s products represent a material source of its value chain emissions (Scope 3). 

Rashpal Bhatti, Vice President, Maritime and Supply Chain Excellence, commented: “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.

“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, banks and LNG fuel network providers. As well as LNG-fuelled transport for up to ten per cent of its iron ore, the tender seeks other innovative solutions that can lower greenhouse gas emissions and increase productivity from BHP’s freight requirements.

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“We are fully supportive of the International Maritime Organisation’s (IMO) 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.”   

Bhatti added: “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.”

As well as investments in emerging technologies, BHP sets greenhouse gas emissions reduction targets for its operations, builds the resilience of its operations and communities to the physical impacts of climate change, and works across sectors to strengthen the global policy and market response.