Biofuel trial voyage from Australia

10th January 2022

A trial voyage using biofuel for the CBH Group, the largest agricultural co-operative in Western Australia, is being performed on the Edwine Oldendorff from Australia to Vietnam. The vessel loaded 30,000 tonnes of sustainably certified malting barley from the Albany Grain Terminal in Western Australia for discharge in Vietnam using biofuel, supplied by BP. The vessel was bunkered with an advanced biofuel blend, which is expected to result in 15% emissions avoided compared to conventional fossil fuels, according to the supplier.

This trial of a 2nd-Generation biofuel will help to test the biofuel supply chain and also provid both CBH and Oldendorff Carriers greater experience with the practical issues involving voyages powered by renewable energy blends. The emission reduction potential has been analyzed as part of Oldendorff Carriers’ research agreement with MIT in Cambridge, Massachusetts.

Jason Craig is the Chief Marketing and Trading Officer of CBH and said that the co-operative is proud to be pioneering efforts, alongside global partners, to reduce its carbon footprint along the supply chain.

He said “Customers across the world are increasingly seeking to source sustainable products, including sustainable grain. It is our role, as Australia’s leading grain exporter, to take the necessary steps to lower carbon emissions along our supply chain. Biofuel is one low-carbon option that could be part of the solution to reducing emissions in the shipping industry.”

The malting barley will be delivered to Vietnam’s leading malting company, Intermalt. They service a number of brewing customers, the largest being Heineken, which has also set a target of a carbon neutral value chain by 2040. In 2020-21 CBH sold 1.2 million tonnes of sustainable certified grain and reduced Scope 1 and 2 carbon emissions on a per tonne basis by 38 percent.

“We need to meet the growing market demand for sustainable or carbon reduced grain by being proactive, practical and adapting. By doing this, we are making sure we can continue to keep our Western Australian growers competitive.” Mr. Craig said.

Ben Harper, Managing Director at Oldendorff Carriers, Melbourne, commented; “We are very pleased to be collaborating with industry leaders CBH to trial biofuel in our vessel Edwine Oldendorff. Collaboration is crucial for us all to learn and share information about the best paths in our efforts to decarbonize the supply chain.”