Anglo American ocean freight aims for carbon neutrality

Source: ©Angloamerican Anglo American Collahuasi - Port Patache

Since establishing its shipping desk in 2012, the company has built a diverse portfolio. Today is transports more than 70m tonnes of dry bulk products per year to its customers around the world.

Sustainable marine fuel

Anglo American has adopted high standards in vessel efficiency across its chartered fleet and is exploring a comprehensive framework of complementary sustainability measures, an approach that will be backed by regular and validated emissions performance reporting.

Vessel retrofits, the use of voyage optimisation software, and support for technology development to help enable the switch from conventional fuel oil to sustainable marine fuels are all part of our efforts to decarbonise ocean freight activities.

LNG-fuelled

In 2020, Anglo American introducted LNG-fuelled Capesize+ vessels to its chartered fleet, taking advantage of LNG’s proven ability to incrementally decarbonise shipping.

Anticipated environmental benefits include a c.35% reduction in carbon emissions compared to standard marine fuel, while also using new technology to eliminate the release of unburnt methane, or so-called “methane slip”.

Anglo American is also participating in industry efforts to accelerate the development of alternative low-carbon and zero-carbon fuels.

“We conducted a successful trial using sustainable biofuel, converted from waste cooking oil and used to power a chartered Capesize ship, with the aim to operationalise biofuel into our marine fuel mix.

“We are also part of an industry consortium looking into the viability of green ammonia,” says Peter Whitcutt, CEO of Anglo American’s marketing business.

Collaboration

Recognising the potential of hydrogen in enabling a carbon neutral pathway for ocean freight, Anglo American recently joined forces with Hydrogenious Maritime AS, a joint venture between Hydrogenious LOHC Technologies, a portfolio company of AP Ventures, and Johannes Østensjø dy AS.

The two companies will collaborate to explore the use of emission-free liquid organic hydrogen carrier (LOHC)-based applications on Anglo American’s chartered fleet.

Anglo American is also exploring opportunities to align its efforts on the development of zero carbon fuel for maritime operations to larger hydrogen supply chains in South Africa and Chile.

Call to Action

Anglo American recently joined more than 200 industry players as a signatory of the Call to Action for Shipping Decarbonisation, calling for decisive government action to enable full decarbonisation of international shipping by 2050.

A partner of the Global Maritime Forum, Anglo American was a founding signatory and an architect of the Sea Cargo Charter – created by some of the world’s largest energy, agriculture, mining, and commodity trading companies.

The aim of this group is to establish a standard methodology and reporting framework to allow charterers to measure and align their emissions from ocean transportation activities.

Anglo American is also a signatory of the Getting to Zero Coalition, an alliance committed to getting commercially viable deep sea zero emission vessels powered by zero emission fuels into operation by 2030.

Safe and sustainable

“Connecting our customers with the metals and minerals they need in a way that is safe, efficient and sustainable is a key priority for us, so our ambition for carbon neutral controlled ocean freight is a natural extension of our commitment to be carbon neutral across our mining operations by 2040,” says Whitcutt.

“We are committed to playing an active role in accelerating the transition to a more sustainable shipping sector, a crucial component in our efforts to extend our positive impact beyond our mine sites.

“This ambition further cements that commitment and will help us shape a clearer path towards decarbonisation,” he explains.