Vale transports iron ore for the first time in a biofuel-powered bulker

The move will help the company reduce its Scope 3 emissions

Brazilian mining company Vale has announced that it has shipped iron ore by a biofuel-powered bulk carrier for the first time.

The transportation is carried out in partnership with Oldendorff Carriers. On October 16, the Hinrich Oldendorff vessel with a deadweight of more than 209,000 tons was refueled in Singapore with a mixture of used vegetable oil and fuel oil during a ballast voyage to Brazil.

According to the report, on November 29, the vessel was loaded with approximately 200 thousand tons of iron ore at the Guaiba Island Terminal in Rio de Janeiro state (Brazil). It will use biofuel on the route from Brazil to Asia.

The B24 biofuel on board is a blend of about 24% biodiesel produced from used vegetable oil (286 tons) and fuel oil, certified by EU RED and ISCC.

The expected CO₂ equivalent savings are about 18%, or 785 tons, which will help Vale reduce its Scope 3 emissions.

The use of biofuels in the voyage with cargo is part of the Ecoshipping program, a research initiative developed by Vale shipping area to reduce greenhouse gas emissions in shipping in line with the ambitions set by the International Maritime Organization. The program tests and develops solutions for the use of alternative fuels for shipping in addition to piloting new energy-efficient technologies.

Oldendorff Carriers has previously conducted biofuel trials on smaller vessels and for shorter voyages.

“We are delighted that Vale has chosen Oldendorff Carriers for their first biofuel flight. We look forward to working with Vale to explore further opportunities to advance the progress of the shipping and mining industries in achieving the Sustainable Development Goals,» he noted. Patrick Hutchins, CEO of Oldendorff Carriers.

As GMK Center reported earlier, Vale expects to start building mega-hubs in the Middle East in 2024 to produce low-carbon iron ore products. The first of them will start operating in 2027. Last year, the company unveiled plans to develop facilities in Saudi Arabia, the UAE and Oman. The products will include hot briquetted iron for local and foreign markets. Local partners are going to build the necessary logistics infrastructure.