Australia’s largest co-op and exporter of grain says it is cutting its maritime supply chain emissions as part of a biofuels insetting pilot project in partnership with two global shipping giants.
CBH Group is working with Norden and Oldendorff, shipping companies which use waste-based biofuels, using book and claim solutions to transport Western Australian grain to the EU.
The biofuel-powered voyages, which follow trials with Oldendorff on shipments to Vietnam in 2022, achieved significant emission reductions compared to traditional fossil fuels, said CBH, at no additional cost to its growers, providing a practical response to new EU regulations impacting all ships over 5,000 gross tonnages calling at European ports.
Part of the EU’s Fit for 55 climate legislation package, the regulations comprise a series of targets aimed at reducing CO2 emissions generated by marine transport.
Shipping companies that don’t refuel with renewable fuel are subject to penalties, and many customers are choosing to incur these penalties instead of asking shipping companies to use biofuels, says CBH.
CBH head of shipping, Pia Van Wyngaard, said the co-operative has worked closely with its shipping partners to leverage their biofuels expertise to lower its maritime supply chain emissions.
“We’re proud to be involved with projects that reduce our environmental impact while maintaining operational efficiencies and maximising value for WA growers,” she said.
“Customers, governments and communities are expecting stronger sustainability efforts, and we are working to ensure WA growers remain competitive and can readily meet our customers’ needs.
“These initiatives allow us to lower our carbon footprint for access to key markets such as Europe, and support CBH’s broader sustainability plan.
“So far, eight voyages transporting WA grain to Europe have used the shipping insetting method.”
