Tata Steel achieved a significant milestone by conducting its first full-laden voyage powered by B24 biofuel blend from East Coast Australia to India.
As informed by the company, the MV Cape XL, loaded with coal, departed from Gladstone port on April 17, 2024, and reached Kalinga International Coal Terminal Paradip Private Ltd. (KICTPPL) port on May 8, 2024. Using B24 biofuel, the vessel allegedly reduced carbon emissions by approximately 20% compared to traditional VLSFO fuel, aligning with Tata Steel’s Scope 3 reduction targets.
Despite fuel availability challenges, Tata Steel collaborated with partners Cargill and Banle Energy International Limited to execute this shipment. The B24 blend, comprising 24% used cooking oil methyl ester (UCOME) and 76% VLSFO, represents the current benchmark grade for marine biofuel.
During the 2023 SAFETY4SEA Limassol Forum, Bill Stamatopoulos, Global Business Development Director, VeriFuel, gave a presentation on the use biofuels for the marine sector. According to Stamatopoulos, pros of biofuels include:
- Four-year experience with successful trials since 2019
- No CAPEX is required
- Improved CO2 emission factor
- Limited safety risk as it is not toxic (like ammonia) and the flash point is always higher than 100 degrees, so it meets the SOLAS requirement
- Can use the existing bunkering infrastructure
- Mix with fossil fuels a.k.a. “drop in”
Additionally, Tata Steel’s participation in the Sea Cargo Charter underscores its dedication to responsible environmental practices aligned with international standards set by the International Maritime Organisation.
By choosing a biofuel blend for our voyage from Australia to India, we were able to cut carbon emissions by ~20% contributing significantly to our scope 3 reduction targets.
… said Peeyush Gupta, Vice President, TQM, Group Strategic Procurement and Supply Chain, Tata Steel
