South32 to Leverage KCC’s Low Carbon Caustic Soda Shipping Solutions for Worsley

Posted by Daniel Gleeson on January 5, 2022

KCC Chartering AS and a subsidiary of South32 Limited have signed a six-year charter agreement (COA) for shipments of caustic soda to the Worsley Alumina refinery at South32 in Western Australia.

KCC Chartering is a subsidiary of Klaveness Combination Carriers ASA, a company with which the refinery has had a relationship for over 30 years, serving the Worsley site with four generations of combined carriers. KCC claims to be the world leader in combination carriers, owning and operating eight CABU and eight CLEANBU combination carriers for dry and wet bulk cargoes.

The COA establishes a framework for how KCC and South32 will work together to further reduce carbon emissions associated with sea freight of caustic soda from South32 to Australia.

The agreed sustainability framework includes detailed reporting on CO2 emissions and setting trajectories for annual CO2 reduction targets, as well as provisions on how to cooperate to achieve the set targets, KCC said. It also includes the ambition to jointly establish a path towards the future zero-emission freight.

KCC CEO Engebret Dahm said: “This contract marks another milestone in the long-standing relationship between South32 and KCC. In this next era of our relationship, together we will tackle the biggest challenge of our generation: climate change. We jointly set the ambition to dramatically reduce carbon emissions from shipping by leveraging KCC’s low carbon caustic soda shipping solution, which already today provides South32 with a carbon footprint of 30 to 40% lower than that of competing tankers.

Brendan Harris, Director of Human Resources and Business at South32, said: “We are delighted to continue our relationship with KCC and our joint efforts to reduce greenhouse gas emissions in the marine supply chain. It is partnerships like these that help decarbonize our value chain and promote the responsible production of the raw materials needed in a low-carbon world. At South32, we are committed to achieving zero operational net carbon emissions by 2050 and have set a mid-term goal to halve these emissions by 2035. ”

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