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Shipping collaborates with miners to create Australia-East Asia iron ore Green Corridor

by The Editorial Team
April 6, 2022
in Emissions
iron ore green corridor

Above image is used for illustration purposes only / Credit: IG Clubs

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A consortium, led by the Global Maritime Forum and consisting of BHP, Rio Tinto, Oldendorff Carriers and Star Bulk Carriers Corp., have signed a letter of intent (LOI) to assess the development of an iron ore Green Corridor between Australia and East Asia.

In order to mobilize demand for green shipping and to scale zero- or near-zero greenhouse gas emission shipping, governments and industry decision-makers are looking to enable and simplify the task of decarbonizing the maritime sector by establishing Green Corridors. These are specific shipping routes where the economics, infrastructure, and logistics of zero- or near-zero emission shipping are more feasible and rapid deployment can be supported by targeted policy and industry action.

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. 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

said Johannah Christensen, CEO at the Global Maritime Forum.

Last year, the Getting to Zero Coalition report “The Next Wave” 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.

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The study suggested that green ammonia is the likely fuel choice for this corridor based on favorable production conditions, an enabling regulatory environment and willing stakeholders.

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.

BHP’s membership of this Green Corridor consortium is testament to the importance we place on targeted exploration and partnerships in identifying pathways to decarbonization for the maritime sector

added Mr Rashpal Bhatti, Vice President of Maritime and Supply Chain Excellence at BHP.

Through the work in the consortium and with inputs from the wider supply chain, the partners aim to develop a framework as a preparatory step towards real-world implementation of a green iron ore shipping value chain.

More specifically, Laure Baratgin, Rio Tinto’s Head of Commercial Operations, explained that this collaboration is another important step towards accelerating the delivery of climate commitments on shipping. Namely, Rio Tinto aims to achieve net zero emissions by 2050 and a 50% reduction by 2030.

The Green Corridor collaboration’s outputs are intended to lay some of the groundwork for real world implementation of the Green Corridor.

Focusing on the feasibility of decarbonizing specific trade routes of the world is an indispensable step to create the foundation for the maritime energy transition

mentioned Charis Plakantonaki, Chief Strategy Officer at Star Bulk Carriers Corp.

The new consortium will enable a robust public-private dialogue to investigate conditions that need to be in place to mobilize demand and to feasibly scale zero or near-zero-GHG emission shipping on the corridor.

In a similar development, first-moving ports in Northern Europe and the Baltic Sea started an ambitious real climate action partnership with the Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping.

The ports will build the foundation of the new European Green Corridors Network, which in its initial phase is set to establish green corridors in Northern Europe and the Baltic Sea.

The project will demonstrate the early commercialization of alternative fuel supply chains and provide a roadmap to scaling the supply chains and create a blueprint for rolling out green corridors in other locations. To achieve this, a phased approach has been planned:

The Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping begins this initiative with the Port Authorities of Gdynia, Hamburg, Roenne, Rotterdam, and Tallinn.

Tags: corridorsdecarbonizationGlobal Maritime Forumgreen practicesiron orereducing shipping emissions

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