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Tata Steel first Indian company to deploy bio-fuel powered ship for imported raw material transportation

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Jamshedpur, Dec 6: In line with its sustainability objectives and initiatives on reduction of scope 3 Greenhouse Gas (GHG) emission in ocean trade, Tata Steel has deployed a ship powered by biofuel. The bulk carrier named Frontier Sky, owned by NYK and operated by Tata NYK Shipping Pte. Ltd., has successfully completed trial use of biofuel to transport cargo provided by Tata Steel. The voyage involved a cargo of 1,60,000 tonnes of coal transported from Gladstone, Australia to Dhamra, India.

Tata Steel’s objective to reduce scope 3 emissions in marine transportation matched those of NYK, who wanted to further verify safe vessel operation along with GHG emission reduction during its second successful trial use of biofuel. NYK provided technical support including biofuel refueling arrangements and engine operation planning. Tata NYK provided operational know how and extensive support during the entire voyage. The knowledge gained from this test voyage will be shared between the three companies, and they will continue to collaborate towards decarbonisation.

Biofuels are carbon-neutral because the carbon dioxide that is absorbed by the source of the biomass is equal to the carbon dioxide that is released when the fuel is burned. GHG emissions are expected to be reduced by ~9% when biofuels are used as compared to traditional bunkers.

Commenting on the achievement, Peeyush Gupta, Vice President Supply Chain, Tata Steel, said: “The encouraging results of the trial is a validation of the intent with which all three partners have collaborated to reduce carbon emissions in their operations. For addressing scope 3 emissions, the subject can only be solved through innovation and participation of all parties involved.”

Ranjan Sinha, Chief Group Shipping and Director Raw Material Procurement, Tata Steel, said: “Establishing the Proof of Concept (PoC) for alternate fuel is a first step in driving our sustainabllity efforts in shipping. We are delighted to partner with Tata NYK on this pathbreaking trial and hope to leapfrog from POC to large scale implementation in near future.”

Earlier this year, Tata Steel signed a Memorandum of Understanding (MoU) with Mitsui O.S.K. Lines (MOL), a global marine transport group, to develop and deploy environment friendly shipping solutions. The Company also became the first steel producer in the world to join the Sea Cargo Charter (SCC) to reduce ‘Scope 3’ greenhouse gas emissions in ocean trade.

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