A CONSORTIUM of shipping industry stakeholders has signed a letter of intent to assess the development of an iron ore green corridor between Australia and East Asia.
Led by the Global Maritime Forum, the consortium comprises BHP, Rio Tinto, Oldendorff Carriers and Star Bulk Carriers.
A green corridor is described as a specific shipping route where the economics, infrastructure, and logistics of zero- or near-zero emission shipping are more feasible, and where rapid deployment can be supported by targeted policy and industry action.
The designated routes intend to meet industry and government demand for low emissions shipping, and a goal to simplify the task of decarbonising the maritime sector.
A Getting to Zero coalition report last year demonstrated the feasibility of green corridors between Australia and East Asia.
The report suggested green ammonia is the likely choice for a corridor based on favourable production conditions, an enabling regulatory environment, and willing stakeholders.
Global Maritime Forum CEO Johannah Christensen said collaboration on the iron ore green corridor is an important step toward enabling zero GHG emission shipping from both the supply and demand side of the sector.
“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 decarbonised fuel production and infrastructure,” she said.
The parties in the consortium intend to jointly assess green ammonia supply, bunkering, and first mover support mechanisms necessary for their participation in the establishment of the corridor.
Rashpal Bhatti, BHP vice president of maritime and supply chain excellence, said the company’s participation reflects the importance it places on targeted exploration and partnerships in decarbonising the maritime sector.
“As one of the largest bulk charterers in the world, we recognise this opportunity and have announced a number of partnerships across our value chain to seek to accelerate the process, he said.
With input from the broader supply chain, the consortium partners will aim to develop a framework as a preparatory step towards real-world implementation of a green iron ore shipping value chain.
“As a leading charterer, we recognise we have an important role to play in the decarbonisation of our own shipping and the broader industry,” Rio Tinto head of commercial operations Laure Baratgin said.
“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,” she said.
Charis Plakantonaki, Star Bulk Carriers chief strategy officer, described the focus on the feasibility of decarbonising trade routes as an indispensable step in the maritime industry’s energy transition.
“Consistent with our vision to lead in the industry’s efforts to phase out GHG emissions, Star Bulk is committed to partnering up with other frontrunners to enable progress in this multi-dimensional, yet so critical for our future, challenge,” she said.
Oldendorff Carriers CEO and president Peter Twiss said the company is pleased to be working on the project with likeminded leaders in the industry.
We view our commitment to stewardship of the environment as an urgent obligation and participating in the establishment of a Green Corridor in one of the most significant trading routes is a big step forward.”
