Tata Steel Sets New Benchmark in Sustainable Shipping with Biofuel Voyage

Indian Steel Giant Reduces Carbon Emissions by 20% on Australia-India Route

Tata Steel has become the first Indian steel company to successfully complete a full-laden voyage from Australia to India using a B24 biofuel blend, setting a new standard for sustainable shipping practices in the country.

JAMSHEDPUR – Tata Steel has achieved a significant milestone in India’s maritime sector by becoming the first steel company to undertake a full-laden leg voyage from East Coast Australia to India, powered by a B24 biofuel blend with Very Low Sulphur Fuel Oil (VLSFO).

The cape vessel "MV Cape XL" loaded coal at Gladstone port on April 17, 2024, and arrived at Kalinga International Coal Terminal Paradip Private Ltd. (KICTPPL) port on May 8, 2024.

During the journey, the vessel utilized B24-grade biofuel, which was loaded from its ballast port in Guangzhou, China.

This eco-friendly fuel choice resulted in a reduction of approximately 565 tons of carbon emissions, which is about 20% less compared to traditional cape vessels using VLSFO.

Peeyush Gupta, Vice President of TQM, Group Strategic Procurement and Supply Chain at Tata Steel, emphasized the company’s commitment to sustainability and reducing carbon emissions.

Gupta stated that this historic shipment sets a new standard for the industry and contributes significantly to Tata Steel’s Scope 3 reduction targets.

The company aims to continue aligning itself with global efforts towards climate change by undertaking more shipments using alternate fuel-powered vessels.

Tata Steel successfully executed this shipment in collaboration with its partners, Cargill and Banle Energy International Limited, despite challenges in fuel availability.

The B24 blend, which combines 24% used cooking oil methyl ester (UCOME) with 76% very low sulphur fuel oil (VLSFO), is the current benchmark grade for marine biofuel.

Tata Steel’s decarbonisation drive has been ongoing, with the company deploying the first Bio-fuel-powered vessel, MV Frontier Sky, in December 2021.

In FY23 and FY24, the company completed 7 and 22 biofuel shipments, respectively, and became the first Indian company to import cargo on bulk carriers using LNG as fuel instead of traditional VLSFO.

Peeyush Gupta, Vice President, TQM, Group Strategic Procurement and Supply Chain, Tata Steel, said: "Through the use of biofuel in its maritime operations, Tata Steel not only reiterates its commitment to reducing carbon emissions but also sets a new standard for sustainability in the industry. By choosing a biofuel blend for our voyage from Australia to India, we were able to cut carbon emissions by ~20% contributing significantly to our scope 3 reduction targets. We endeavour to undertake more such shipments for imports through alternate fuel-powered vessels, and continue to align ourselves with global efforts towards climate change."