South32 to leverage KCC low carbon caustic soda shipping solutions for Worsley

KCC Chartering AS and a subsidiary of South32 Limited have signed a six-year contract of affreightment (COA) for shipments of caustic soda to South32’s Worsley Alumina refinery in Western Australia.

KCC Chartering is a subsidiary of Klaveness Combination Carriers ASA, a company the refinery has had a relationship with for more than 30 years, servicing the Worsley site with four generations of combination carriers. KCC says it is the world leader in combination carriers, owning and operating eight CABU and eight CLEANBU combination carriers for wet and dry bulk cargoes.

The COA establishes a framework for how KCC and South32 will work together to deliver further reductions in carbon emissions associated with South32’s caustic soda ocean freight to Australia.

The agreed sustainability framework includes detailed CO2 emission reporting and the establishing of trajectories for annual CO2 reductions targets, and arrangements for how to co-operate to reach the set targets, KCC said. It further includes an ambition to jointly establish a pathway towards future zero emission freight.

KCC’s CEO, Engebret Dahm, said: “This contract marks another important milestone in the longstanding relationship between South32 and KCC. In this next era of our relationship, together we will address the main challenge of our generation – climate change. We have jointly set ambitions to considerably reduce shipping carbon emissions through building on KCC’s low carbon caustic soda shipping solution, which already today provides South32 with a 30-40% lower carbon footprint than competing tanker vessels.”

South32 Chief Human Resources and Commercial Officer, Brendan Harris, said: “We are pleased to continue our relationship with KCC and our joint efforts to reduce greenhouse gas emissions in the maritime supply chain. It’s partnerships like these that contribute to the decarbonisation of our value chain and promote the responsible production of commodities needed in a low-carbon world. At South32, we are committed to achieving net zero operational carbon emissions by 2050 and have set a medium-term target to halve these emissions by 2035.”