Posted on 08 Apr 2022
Leading Australian iron ore miners Rio Tinto and BHP have joined with global dry bulk shipping companies Oldendorff Carriers and Star Bulk Carriers Corp in a consortium led by the Global Maritime Forum (GMF) to assess the development of an iron ore 'green corridor' between Australia and East Asia, according to press releases posted by the two companies on April 6.
Green corridors are specific shipping routes that support the economics, infrastructure, and logistics of zero- or near-zero-emission shipping through targeted policy and industry action, the release states.
Governments and industry decision-makers are increasingly looking to enable and simplify the task of decarbonizing the maritime sector by establishing green corridors to mobilize demand for green shipping and to scale zero- or near-zero greenhouse gas emission shipping.
"Zero-greenhouse gas emission pathways require the creation of a parallel value chain that involves new ways of working, new contractual relationships, and drives the development of decarbonized fuel production and infrastructure," Global Maritime Forum CEO Johannah Christensen said.
"This new iron ore green corridor collaboration is an important step towards enabling zero greenhouse gas emission shipping from both the supply and demand side."
This is the latest move as part of global net-zero initiatives launched at the UN Climate Change Conference in Glasgow last November, with 22 countries including Australia committing to work together to establish green shipping corridors between ports in their countries. It also comes after a study conducted by GMF on decarbonizing the shipping sector.
The study demonstrated how green corridors can be conceived, prioritized, and designed with a pre-feasibility study for an iron ore route between Australia and East Asia. It suggested that green ammonia is the likely fuel choice for this corridor based on favorable production conditions, an enabling regulatory environment and willing stakeholders, the release said.
Taking the study further, the parties in the consortium intend to jointly assess green ammonia supply, bunkering and first mover support mechanisms, necessary for their participation in a viable Australia to East Asia iron ore green corridor, it noted.
Consequently, based on the consortium work and inputs from the supply chain, the related partners will develop a framework for the real-world implementation of a shipping value chain for iron ore.
The new consortium is also expected to enable a public-private dialogue that will assess the conditions required for zero or near-zero-GHG emission shipping on the corridor, the release said.
Both Rio Tinto and BHP have set the goals to achieve net zero emissions by 2050, Mysteel Global noted.
Laure Baratgin, Rio Tinto's Head of Commercial Operations, also commented: "As a leading charterer, we recognize we have an important role to play in the decarbonization of our own shipping and the broader industry. This collaboration is another important step towards accelerating the delivery of our climate commitments on shipping, as part of Rio Tinto's broader goal of net zero emissions by 2050 and a 50% reduction by 2030, and supports efforts in providing our customers and partners with sustainable value-chain solutions."
Australia is the world's largest iron ore exporter. According to the Resources and Energy Quarterly report released by Australia's Department of Industry, Innovation and Science, it exported 872 million tonnes of iron ore in 2021.
Source:Mysteel Global
