26 June 2024

Decarbonising the Pilbara-to-Asia iron ore export trade route

A recent joint study reveals that emissions in the Pilbara-to-Asia iron ore export trade route can be reduced by over 90% by 2050.

Pilbara Port © Pilbara Port Authority

The findings reportedly demonstrate an 'accessible and achievable pathway' to net-zero emissions using liquefied methane (LNG). 

In November 2023 Pilbara Clean Fuels, Oceania Marine Energy and RINA agreed to collaborate on studies to define the commercial and emissions reduction benefits their combined concepts could deliver to shipowners and charterers for the Pilbara to Asia dry-bulk minerals export trade route. 

Pilbara Clean Fuels is pursuing the development of an electrified LNG plant in Port Hedland, Western Australia, aimed at producing low-carbon LNG marine bunker fuel.

Oceania is developing a marine fuel bunkering business using purpose-designed LNG refuelling vessels to be chartered from Kanfer Shipping, Norway.

RINA has developed a concept for an LNG-fuelled 209,000 DWT Newcastlemax dry bulk carrier design incorporating pre-combustion carbon removal and hydrogen production to meet IMO 2050 Carbon Intensity Index (CII) requirements over the ship’s operating life.    

Their combined study is said to present a flexible and commercially attractive International Maritime Organisation (IMO) compliant marine fuel strategy for shipowners, operators and charterers amidst competing alternative fuel.

It proposes a ‘green corridor’ marine fuels solution for the Western Australia to China bulk minerals export trade route, using fuel and technologies already in use today and that can be implemented to optimise vessel fuelling and operations according to regulatory requirements and business drivers. ​

The low-carbon LNG plant by Pilbara Clean Fuels is reported to have the potential to initially produce LNG with emissions of less than 200kg/t, which can be further reduced to around 50kg/t LNG (and potentially to zero through technology improvements). ​

'LNG bunkering in the Pilbara region offers a substantial voyage optimisation by eliminating the need to deviate to other major bunkering hubs in the region, thus significantly reducing emissions,' says the team. 'This also reduces by 25% the emissions associated with transporting LNG over long distances, compared to LNG bunkering in other ports and ensures competitive pricing for LNG.'

RINA’s bulk-carrier ship concept features a propulsion arrangement which is said to achieve a fuel saving of 12% when running on LNG at current market speeds and offers the charterer fuel flexibility and economic benefits by reducing LNG consumption. This can lead to lower fuel running costs, particularly when compared with traditional fuel oil.

It provides redundancy, significantly reducing the risk of black out, and does not suffer from well-known issues like acceleration through the engine’s barred speed range. The ship can also harvest the benefits from wind propulsion.

The proposal is flexible in fuel selection and, most importantly, the use of hydrogen produced on board is on demand. This concept, which produces carbon dioxide that is captured and stored onboard, has been designed to retrofit emissions-reduction equipment in stages to suit the owners’ requirements.

The design allows charterers to modify the vessels with modular hydrogen production and carbon capture and storage (CCS) equipment as needed.

The bunker vessel design incorporates a hybrid energy system, including an 8MWh battery, allowing for emission-free operation in port. This, alongside the onboard CGR-designed process plant for vapour recovery and re-liquefaction, significantly reduces emissions and enhances operational efficiency.

The CO2 generated from onboard pre-combustion hydrogen production can  be integrated into the large-volume CCS hubs currently being developed in the Pilbara region by various third-party proponents.

The combination of systems and technologies is claimed to significantly reduce emissions today and to comply with the IMO 2023 GHG Reduction Strategy through to 2050. ​

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