Tata Steel becomes the first Indian steel company to perform full laden leg on B24 biofuel for its raw material shipment from Australia to India
Mumbai, May 9, 2024: Tata Steel becomes the first Indian steel company to undertake a full-laden leg voyage from East Coast Australia to India, powered by a B24 biofuel blend with VLSFO (Very Low Sulphur Fuel Oil). This voyage sets a new benchmark for sustainable shipping practices in India and marks a new milestone in the country’s maritime sector.
On April 17, 2024, the cape vessel “MV Cape XL” departed from Gladstone port after loading coal. It successfully berthed at Kalinga International Coal Terminal Paradip Private Ltd. (KICTPPL) port on May 8, 2024, to discharge 1,48,500 metric tons of coal.
During its laden leg from Gladstone to Paradip, MV Cape XL used B24-grade biofuel which was loaded from its ballast port in Guangzhou, China. Carbon emission for this laden leg voyage was approximately 565 tons less, which is ~20% less as compared to a traditional cape vessel using VLSFO, aligning with the Company’s ambitious Scope 3 reduction targets.
Peeyush Gupta, Vice President, TQM, Group Strategic Procurement and Supply Chain, Tata Steel, said: “Through the use of biofuel in its maritime operations, Tata Steel not only reiterates its commitment to reducing carbon emissions but also sets a new standard for sustainability in the industry. 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. We endeavour to undertake more such shipments for imports through alternate fuel-powered vessels, and continue to align ourselves with global efforts towards climate change.”
Despite facing challenges in fuel availability, Tata Steel successfully executed this historic shipment in collaboration with its partners, Cargill and Banle Energy International Limited.
The B24 blend, the current benchmark grade for marine biofuel, combines 24% used cooking oil methyl ester (UCOME) with 76% very low sulphur fuel oil (VLSFO).
Earlier in December 2021, Tata Steel deployed the first Bio-fuel-powered vessel MV Frontier Sky which was also the first by any Indian steel manufacturer. The Company continued the decarbonisation drive with 7 biofuel shipments in FY23 and 22 biofuel shipments in FY24 in addition to becoming the first Indian company to import cargo on bulk carriers using LNG as fuel instead of traditional VLSFO.
Tata Steel is also the first steel producer in the world to join the Sea Cargo Charter (SCC) to align its chartering activities with responsible environmental behaviour, consistent with the policies and ambitions of the International Maritime Organisation.
