Tata Steel’s First LNG-Powered Carrier Ships Coal from Australia to India

India’s first LNG-powered bulk carrier, deployed by Tata Steel, successfully ships 1,65,700 metric tonnes of coal from Australia to India, significantly reducing carbon emissions.

JAMSHEDPUR – Tata Steel has marked its commitment to environmental sustainability by becoming the first Indian company to sign the Sea Cargo Charter (SCC). This move aligns the company’s chartering operations with ethical environmental conduct, in accordance with the rules and regulations of the International Maritime Organisation.

In December 2021, Tata Steel launched the first biofuel-powered ship, MV Frontier Sky. This initiative, also a first in the Indian steel industry, was soon followed by the company transporting seven cargoes of biofuel in FY23.

In an ongoing effort to reduce carbon footprint, the company, in FY24, deployed an LNG-powered vessel for delivering raw materials to India. Peeyush Gupta, Vice President of Tata Steel’s group strategic procurement and supply chain, stated that the company aims to conduct 10% of total shipments for imports via alternative fuel-powered boats in FY24. This initiative reflects Tata Steel’s commitment to Scope 3 decarbonisation.

Tata Steel is making strides in reducing its carbon emissions, having successfully completed a journey with 35% less emissions than conventional ships. The vessel, MV Ubuntu Unity, used LNG for part of its journey and a combination of LNG and traditional fuel for the remainder. This journey from Gladstone to Dhamra emitted 1,800 fewer tonnes of carbon than standard vessels.

The MV Ubuntu Unity is a testament to the possibilities of cleaner shipping procedures. The use of LNG as a fuel results in significantly lower carbon emissions, contributing to global efforts to combat climate change.

On July 24, 2023, the MV Ubuntu Unity successfully docked at Dhamra port, offloading 1,65,700 metric tonnes of coal. Ranjan Sinha, Chief Group Shipping, Tata Steel, along with other executives, welcomed the vessel. Tata Steel plans to use similar LNG-powered vessels to import 1 million tonnes of coking coal from Australia in FY24. Dhamra Port has offered preferential treatment to these vessels to aid in Tata Steel’s pollution reduction efforts.

Tata Steel has shown industry leadership in sustainability by being the first Indian company to use an LNG-powered Capesize bulk carrier to transport raw materials from Australia to India. This move signifies the company’s dedicated approach to reducing its environmental impact while maintaining its robust supply chain operations.