MITSUI OSK LINES and Cyprus-based SMT Shipping have signed an MOU to work together on the transport of direct reduced iron, a product under development in several parts of Australia.
As steel industry intensifies efforts to lower CO2 emissions in response to the climate change, there is significant interest in the use of DRI as a steelmaking feedstock, manufactured by reducing iron ore using natural gas or hydrogen by which CO2 output is decreased when compared to that of blast furnace using coal.
“Marine transportation of DRI requires specialized skills and care to prevent overheating. SMT Shipping is a world leader in the carriage of DRI, while MOL has provided the global steel industry with marine transportation services for many years,” the partners say.
Under the MoU, MOL is committed to enhancing the transport capacity of DRI in order to address increasing demand with necessary safety measures in collaboration with SMT Shipping, thereby contributing to the steel industry’s efforts to reduce CO2 emissions.
SMT Shipping is a global maritime group of companies involved in shipping and transhipment of dry bulk cargo with a fleet of over 65 vessels operating worldwide.
SMT was founded in 1990 by Anthonius Voorham and benefitted from a close relationship with Gearbulk, initially managing (1996) then acquiring and operating many of the latter’s early generation gantry-equipped open hatch bulkers under a joint venture (1999).
SMT has two 50/50 joint ventures with Canada Steamship Lines (CSL Group): Eureka Shipping (founded 2008), a leading provider of pneumatic and mechanical cement carriers, which it owns and manages in Europe, and Mariac Belt Shipping (founded 2022), which currently operates transhippers, bulk carriers, multi-purpose product (MPP) vessels and tugs in the Americas, the Caribbean and West Africa..
There are a number of DRI projects underway or in prospect in Australia, with the most prominent to be developed by BlueScope, BHP and Rio Tinto at the Kwinana Industrial Area, south of Perth, which will be the largest ironmaking electric smelting furnace1 (ESF) pilot plant.
The pilot plant aims to prove Pilbara iron ore can be used to produce lower-carbon3 emissions molten iron using direct reduced iron (DRI)-ESF technology. The pilot plant would produce 30,000-40,000 tonnes of molten iron a year. It will initially use natural gas to reduce iron ore to DRI, but once operational, the project aims to use lower-carbon emissions hydrogen to reduce iron ore.
Last month the Federal Government announced the $1 billion Green Iron Fund, intended to boost green iron manufacturing and supply chains by supporting early mover green iron projects and unlocking private investment at scale.
SMT Shipping is a global maritime group of companies involved in shipping and transhipment of dry bulk cargo with a fleet of over 65 vessels operating worldwide.
SMT was founded in 1990 by Anthonius Voorham and benefitted from a close relationship with Gearbulk, initially managing (1996) then acquiring and operating many of the latter’s early generation gantry-equipped open hatch bulkers under a joint venture (1999).
SMT has two 50/50 joint ventures with Canada Steamship Lines (CSL Group): Eureka Shipping (founded 2008), a leading provider of pneumatic and mechanical cement carriers, which it owns and manages in Europe, and Mariac Belt Shipping (founded 2022), which currently operates transhippers, bulk carriers, multi-purpose product (MPP) vessels and tugs in the Americas, the Caribbean and West Africa..
