Key Takeaways
- Tata Steel became the first Indian company to import coal using an LNG powered bulk carrier.
- The voyage cut carbon emissions by Rs1,800 tons (~35%), lowering the company’s Scope 3 footprint.
- Tata Steel plans to ship 1 million tons of coking coal in FY24 through similar low‑carbon vessels.
Kolkata: Tata Steel has adopted various “industry first” initiatives in sustainability.
Reiterating its commitment to a sustainable future, Tata Steel becomes the first Indian company to import cargo on bulk carrier that uses LNG as fuel instead of traditional VLSFO (Very Low Sulphur Fuel Oil), according to a media statement here on Friday.
This groundbreaking vessel sets a new benchmark for sustainable shipping practices in India and marks a significant milestone in the country’ maritime sector.
On July 24, 2023, cape vessel “MV Ubuntu Unity” successfully berthed at Dharma port to discharge 1,65,700 metric tons of coal.
The vessel was received at port by Ranjan Sinha, Chief Group Shipping, Tata Steel, along with other senior executives of Tata Steel and Dhamra Port.
Going forward, Tata Steel plans to import Rs1 million tons of coking coal in FY24 from Australia in such LNG powered vessels. Dhamra Port also extended special privilege to the LNG vessel thereby contributing to Tata Steel’s quest to lower Scope 3 emission.
MV Ubuntu Unity loaded coal from Gladstone port and set sail on July 1, 2023. She used LNG during her ballast leg (Tianjin to Gladstone) and a mix of LNG and traditional fuel on the laden leg (Gladstone to Dhamra).
Carbon emissions for this voyage were reduced by Rs1,800 tons, a 35% decrease compared with traditional Baltic‑specification cape vessels.
LNG is a cleaner fuel as compared to heavy fuel oil used in bulk ships and with increasing availability of LNG, this fuel is considered as transition fuel on the path of zero carbon emissions. Equipped with state-of-the-art technology, the vessel significantly reduces carbon emissions thereby aligning with global efforts to reduce climate change.
Peeyush Gupta, Vice-President, Group Strategic Procurement and Supply Chain, Tata Steel, said: “In 2021, Tata Steel became the first in the Indian Steel Industry to deploy a ship powered by biofuel. We continued the decarbonation drive with 7 biofuel shipments in FY23. In continuation to our sustainability drive, in FY24, we are the first to deploy an LNG powered vessel for transportation of raw materials to India. This is a landmark initiative to lower the Company’s Scope 3 carbon footprint. With innovation and participation of all the partners, in FY24, we endeavour to perform 10% of our total number of shipments for imports through alternate fuel powered vessels.”
