Tag Archives: greenhouse gas emissions

BHP and Hatch commence design study for an electric smelting furnace pilot

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BHP and global engineering, project management and professional services firm, Hatch, have signed an agreement to design an electric smelting furnace pilot (ESF) plant in support of a decision to construct this facility in Australia.

The facility will aim to demonstrate a pathway to lower carbon dioxide (CO2) intensity in steel production using iron ore from BHP’s Pilbara mines for BHP’s steelmaking customer, BHP says.

The small-scale demonstration plant would be used to collaborate with steel producers and technology providers to generate and share learnings with the aim of accelerating scale up of ESF plant designs.

The pilot facility would be intended to test and optimise production of iron from the ESF, a new type of furnace that is being developed by leading steel producers and technology companies targeting low CO2 emission-intensity steel. The ESF is capable of producing steel from iron ore using renewable electricity and hydrogen replacing coking coal, when combined with a direct reduced iron (DRI) step. Estimates show that reductions of more than 80% in CO2 emission intensity are potentially achievable processing Pilbara iron ores through a DRI-ESF pathway, compared with the current industry average for the conventional blast furnace steel route, BHP says.

The ESF allows for greater flexibility in input raw materials, addressing a key barrier to wider adoption of other lower CO2 emissions production routes, such as use of electric arc furnaces which are designed for scrap steel and high grade DRI only. The ESF also has the potential to be integrated into a steel plant’s existing downstream production units.

The pilot facility will enable deeper and more accurate insights into the performance of this technology for converting iron ores into molten iron and steel. Planned test programs will help de-risk further investment in commercial scale projects, thereby complementing development plans of BHP’s steel customers. This scale-up approach has been utilised by other industry demonstrations such as Sweden’s HYBRIT project, BHP added.

BHP and Hatch will assess several locations in Australia for the proposed facility based on supporting infrastructure, technology skills and the availability of local partnerships to build and operate the facility.

BHP’s Chief Commercial Officer, Vandita Pant, said: “We see the ESF process as a critical breakthrough in significantly reducing the carbon emissions intensity of steel production and one that provides an opportunity for iron ore from our Pilbara mines. The steel industry has identified the ESF as a viable option to use a wider range of raw materials and steel companies globally are looking to build commercial-scale ESF plants as part of their CO2 emission reduction roadmaps.”

BHP’s Group Sales and Marketing Officer, Michiel Hovers, said: “Hatch is a key partner in carbon emissions reduction initiatives across the world. We are pleased that we can collaborate with Hatch, alongside BHP’s existing customer and research partnerships, to further progress the development of pathways towards a lower GHG emission footprint for the steelmaking industry. The ESF technology is very exciting and potentially very relevant for reducing the carbon emissions intensity of steel production and provides new and exciting opportunities for our Pilbara iron ore and our customers.

“BHP and Hatch have collaborated on steel technology and design for reducing GHG emissions from over several years, including the ESF and in collaboration with steel producers, and this project is a natural progression in our partnership.”

Hatch’s Managing Director for Bulk Metals, Joe Petrolito, said: “Hatch is excited to collaborate with BHP on this forward-looking initiative and is honored to contribute to the efforts of an industry leader who is dedicated to driving tangible progress. This project marks a significant milestone in the pursuit of decarbonisation within a challenging sector that underpins global infrastructure and progress.”

ABB, Boliden target low carbon footprint copper for EMS equipment, electric motors

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ABB says it is working with Boliden to build a strategic co-operation to use low carbon footprint copper in its electromagnetic stirring (EMS) equipment and high-efficiency electric motors.

The aim is to reduce greenhouse gas (GHG) emissions while driving the transition to a more circular economy, ABB says.

The partnership with Boliden forms a part of ABB’s strategic ambition to reduce the environmental impact of raw materials used in its products by replacing them with lower carbon alternatives, it says. Apart from using recycled copper, ABB has committed to increase the use of recycled electric steel (e-steel) and recycled aluminum.

The move is also an important step in closing the circularity loop that has already seen ABB designing its motors to be up to 98% recyclable, with the remaining 2% of materials available to be incinerated for heat recovery. Recycling copper, aluminum and steel offers energy savings of between 75-95% compared with virgin production, according to the company.

Ola Norén, Head of Metallurgy Products, Process Industries, ABB, said: “As a part of ABB’s 2030 sustainability strategy, our target is for 80% of our products and solutions to be covered by a circularity approach. The work with Boliden is an important step towards this goal. By taking stock of the delivery by the end of this year we’ll ensure that all our metallurgy products use recycled hollow copper conductors from 2023.”

Ulf Hellstrom, Managing Director at ABB Motion, Sweden, added: “We want to enable a more sustainable and resource-efficient future, and with this collaboration our customers can not only decarbonise by upgrading to energy-efficient motors but will also be able to install ABB technology that has an improved environmental footprint thanks to Boliden’s copper. This is an excellent example of the circular economy in practice.”

The co-operation includes ABB placing the first order for Boliden’s certified recycled copper through Finnish metals manufacturing specialist Luvata. Hollow conductor wire made from the material will be used in ABB’s EMS products for both steel and aluminum manufacturing.

Furthermore, as of 2023, ABB will purchase Boliden’s low-carbon and recycled copper to cover the demand for its IE5 Ultra-Premium Efficiency SynRM and e-mobility motors produced in Europe, it says. The two companies have also signed a memorandum of understanding that will see ABB supporting Boliden in identifying inefficient low-voltage motors across its operating units. These motors can then be replaced with high-efficiency motors within ABB’s take back upcycling framework, with the old motors recycled to provide raw material for Boliden’s recycled copper.

Boliden has developed low-carbon copper that is mined using fossil-free energy and also produces copper using secondary raw material from recycled products. The carbon footprint of these products is 65% lower than the industry average, according to the miner.

A typical 75 kW motor weighing 650 kg might include 80 kg of copper. Using Boliden’s copper saves approximately 200 kg of CO₂ emissions for every one of these motors manufactured, ABB says. Each stirrer has up to 2,700 kg of copper, saving up to 6,700 kg of CO2 per stirrer.

Teck to deploy first electric tug boats in Canada at Neptune Terminal

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Teck Resources has announced an agreement to deploy two electric tug boats at the Neptune Terminal in Vancouver, British Columbia, in support of Teck’s climate goals.

This marks the first electric tugs operating in Canada as a full tugboat package for harbour assist and tug services, according to Teck.

Under the agreement, SAAM will furnish two ElectRA 2300 SX tugs commencing operation during the second half of 2023, which are expected to eliminate over 2,400 t/y of greenhouse gas emissions. In addition to emissions reductions, using electric tugs will also reduce underwater noise, benefitting marine life in the harbour.

“Working with SAAM Towage to further reduce the greenhouse gas emissions associated with transportation of our products is another step forward in achieving our climate goals and contributing to global climate action,” Jonathan Price, CEO of Teck, said. “Collaborating with transportation providers to develop green transportation corridors is part of our climate action strategy and supports our goal of net zero emissions by 2050.”

Sander Bikkers, President, SAAM Towage Canada, added: “With Teck and Neptune Terminals, SAAM Towage has found value aligned partners who want to drive sustainable environmental change through innovation. This partnership is based on a shared commitment to do our part to address the global challenge of climate change by reducing our carbon footprint.”

The ElectRA Tugs are designed by Vancouver-based Robert Allan Ltd and will be built at Sanmar Shipyards in Turkey.

Neptune is owned by Canpotex Bulk Terminals Limited, a Canpotex affiliate, and Teck Coal Partnership, a subsidiary of Teck Resources.

This announcement builds on Teck’s progress to work with partners to reduce emissions across its supply chain and achieve a 40% reduction in shipping emission intensity by 2030.

Teck previously announced an agreement with Oldendorff Carriers to employ energy-efficient bulk carriers for shipments of Teck steelmaking coal from the Port of Vancouver, reducing 45,000 t/y of CO2, equivalent to removing nearly 10,000 passenger vehicles from the road, according to the company.

Teck has also announced a pilot of a fully electric on-highway transport truck to haul copper concentrate between Teck’s Highland Valley Copper Operations in south-central BC and a rail loading facility in Ashcroft, BC.

Teck’s climate action strategy also includes goals to reduce carbon intensity across operations by 33% by 2030 and be a net-zero operator by 2050.

AngloGold investigating use of battery-electric vehicles at Cuiaba mine in Brazil

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AngloGold Ashanti says it is weighing up the potential introduction of battery-electric vehicles at its Cuiaba mine in Brazil as a small part of a wider initiative to achieve a 30% absolute reduction in its Scope 1 and 2 Greenhouse Gas (GHG) emissions by 2030.

The company says this carbon emission reduction target could be met through a combination of renewable energy projects, fleet electrification and lower-emission power sources. The company has already reduced its absolute GHG emissions by more than two thirds since 2007, and remains committed to achieving net zero emissions by 2050.

The targeted reduction announced today, from a 2021 baseline of 1.4 Mt of carbon dioxide equivalent (CO2e), aims to see emissions from the company’s activities diminish to about 1 Mt by the end of the decade. When growth projects are factored in, including those in Nevada and Colombia, AngloGold Ashanti is targeting a 46% reduction in emissions by the end of the decade.

The capital cost required to achieve these reductions over the coming eight years is anticipated to be about $1.1 billion, of which $350 million will be funded over that period by AngloGold Ashanti and the remaining $750 million through third-party funding, including from providers of renewable energy infrastructure. The company plans in the coming weeks to initiate a process to secure a green funding facility of $250-300 million to finance its portion of these decarbonisation initiatives across its business.

“We have a clear pathway to achieve our target by 2030, when we expect to have lowered our overall emissions by almost a third,” AngloGold Ashanti Chief Executive Officer, Alberto Calderon, said. “This ensures we continue to do our part in reducing our carbon footprint, while also improving the value of our business.”

The targeted reductions announced today incorporate initiatives at each business unit including the introduction of renewable energy, cleaner grid power and partial fleet electrification.

Approximately 60% of the planned emissions reductions will come from large renewable energy projects including wind and solar projects at the company’s Australian operations and solar-power plants at both Siguiri in Guinea and the Iduapriem and Obuasi operations in Ghana, AngloGold said. In addition, a prefeasibility study has commenced at the Cuiaba mine in Brazil to confirm the benefits of replacing some mobile fleet with battery-electric vehicles. AngloGold will also be working with Sandvik to trial underground mining’s largest-capacity BEV truck, the 65-t payload TH665B at Sunrise Dam.

The Cuiabá complex includes the Cuiabá and Lamego underground mines and the Cuiabá and Queiroz plants. Ore from the Cuiabá and Lamego mines is processed at the Cuiabá gold plant. The concentrate produced is transported by aerial ropeway to the Queiroz plant for processing and refining. Total annual capacity of the complete Cuiabá circuit is 1.75 Mt.

The viability of a wind farm at Cerro Vanguardia in Argentina is also being investigated. The vast majority of these projects are expected to be NPV-positive adding value to the business by reducing energy costs and improving energy security, the company said.

Two “clean grid” initiatives are already close to completion – a switch from diesel generation at the Geita mine site in Tanzania to the country’s national power grid, which has a high proportion of power sourced from gas and renewables, and the transition to full hydro-grid power in Brazil.

Shell on the future of fuel switching

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Mark Hannan, General Manager for Mining Decarbonisation at Shell, explores how mining operators can switch their fleets from diesel to low-carbon fuels as part of a wider transition to zero-carbon fuels.

The mining industry is in need of decarbonisation but delivering change at pace is a real challenge. There is huge pressure to achieve this when, it is estimated, 10% of the world’s energy-related greenhouse gas (GHG) emissions come from primary minerals and metals production, according to Nature Geoscience Magazine (2020).

For a mining company to achieve their decarbonisation goals, it is beneficial to maximise the benefits in the short term while providing greater flexibility for the long term. One such area that offers opportunities for this is fuel switching in mining fleets.

Decarbonisation drives the need for alternative fuels

No matter what stage a mining business has reached on its pathway to decarbonisation, it is important to review how its mobile assets impact the environment. McKinsey shows that between 40-50% of CO2 emissions in mining come from the diesel used for mobile assets.

Due to concerns around diesel fumes in confined spaces, the problem is largely being solved in underground sites – with some due to run entirely on battery-electric assets in the near term. In open-pit mines, where equipment is larger, emissions from diesel fuel are a challenge still to overcome, which is why fuel switching is essential to decarbonisation.

However, there are still many elements to consider when making the business case for alternative fuels. This includes the performance of alternative fuels in comparison with diesel, the capital investment needed to implement them and how widely available they are. That is before analysing the benefits of meeting emissions targets against the higher cost of using low-carbon fuels.

A net-zero future is coming, but it is not here yet

In the longer term, there are two diesel alternatives that will offer key routes to effective fuel switching: hydrogen and electricity.

Hydrogen is set to play a significant role in the decarbonisation of every industry – not least those featuring hard-to-abate sectors like mining. As well as reducing emissions in overall energy use across sites, hydrogen will provide a low-carbon alternative to diesel that also delivers higher energy density to drive the performance of mobile assets.

Government support for hydrogen power is growing rapidly and it is an area in which Shell is working closely with customers and original equipment manufacturers (OEMs) to drive innovation and deliver supply at scale. However, with hydrogen supply dependent on elements such as the availability and cost of technology, land, water, storage and transport, it is an alternative that will only start to present real impact from 2030 and beyond.

For off-highway equipment in mining, fleet electrification is often seen as a more relevant near-term solution. This is not surprising as electric power can not only contribute to reduced emissions but also help businesses shift away from their exposure to volatile diesel prices – potentially leading to a positive impact on total cost of ownership (TCO).

To help deliver on the mining industry’s longer-term aspirations for fleet electrification, Shell is developing a suite of modular end-to-end solutions for mining heavy-duty vehicles that decarbonises haul trucks while minimising the operational impact of electrification in a scalable, interoperable and sustainable way.

When looking to make the switch to electrification, mining companies must address the significant escalation in power demand that would come with full-scale electrification. Also, they will want to know the electricity is generated from renewable sources – helping them to reduce their Scope 1 and 2 emissions. Electrification powered by renewable energy will be a significant driver of change for mining sites, which is why Shell is working to overcome the barriers to increasing its renewable capacity – such as the need for upgrades to the grid and storage capabilities.

Low-carbon fuels offer an immediate next step for mining businesses

Hydrogen and electrification represent the future of fuel for mobility in mining. But, in the short term, there is another alternative that can act as a transition fuel and help lower emissions while businesses wait for hydrogen and electricity to become viable at scale: low-carbon fuels.

There are two types of low-carbon fuels relevant to mobility in mining:

  • Biodiesel – also known as Fatty Acid Methyl Ester (FAME); and
  • Renewable diesel – also known as Hydrotreated Vegetable Oil (HVO)

Though both are derived from organic biomass like waste vegetable oils and animal fats, there are differences in their chemical composition owing to a different manufacturing process that impact their use. For instance, biodiesel is the more affordable choice, yet most OEMs place a limit on the percentage it is possible to blend with conventional diesel due to quality concerns such as storage stability and performance in cold temperatures. Renewable diesel more closely resembles the composition of conventional diesel, meaning it can be blended in any ratio up to a concentration of 100%, but is more expensive due to the complexity in refinery processing. Crucially, both fuels offer a route to emissions reduction in mining – and a combination of the two is likely to be needed.

These low-carbon fuels offer a more immediate solution to the challenges of fleet decarbonisation in mining, without making costly investments in infrastructure. Not only can they be used in existing heavy-duty diesel engines, but, as long as they are in accordance with manufacturer advice, they also require no infrastructure investment. This makes them a more affordable short-term option that enables businesses to reduce emissions today while working to implement the ecosystem needed to transition to hydrogen and electricity tomorrow.

Overcoming the challenges of availability at scale

The merits of low-carbon fuels for a sites’ mobility needs might already be clear. After all, the technology is mature and it is easy to implement – certainly compared with hydrogen and electricity. However, there are still barriers to overcome before we see widespread adoption in the mining industry.

Availability and affordability are the two critical challenges. Despite its maturity, supply of low-carbon fuels is tight – especially given the remote regions that mining operations usually take place in. The need to comply with regional regulations on renewable fuels is also driving rising demand. For example, the EU Commission’s renewable energy directive has proposed increasing its target for renewable energy sources consumption by 2030 to 45% (up from its current goal of 32%).

Also, mining is not the only sector looking to alternative fuels to drive decarbonisation, meaning businesses will need to compete and trade with areas like commercial road transport to source low-carbon options. With more users needing access to alternative fuels, premiums for low-carbon fuels remain high. This can make low-carbon fuels less affordable and risks undermining any TCO improvements businesses can expect to realise from fuel switching.

It means that businesses are hesitant to act today as they wait for more capacity and greater competition to arrive – even though mining cannot afford to delay its emissions reduction efforts. That is why, at Shell, we are working to deliver additional capacity and competition. As well as investing in new production facilities (including a new biofuels facility in the Shell Energy and Chemicals Park Rotterdam, which will produce sustainable aviation fuel and renewable diesel made from waste in The Netherlands once it comes onstream), we are using our existing relationships with OEMs to help mining businesses get the most out of the low-carbon fuels they do have access to.

Collaboration will be critical to fuel switching success

Ultimately, if mining businesses are to meet their regulatory responsibilities while driving performance, they will need to unlock the opportunity that fuel switching provides. From low-carbon fuels to electrification to hydrogen, there is huge potential to reduce emissions while improving the TCO of mining mobility.

Successful fuel switching will require close collaboration with partners and suppliers to create a new fuel ecosystem by improving the availability and affordability of alternatives to conventional diesel. Only by working together will we deliver a new fuel future for mining, which is why Shell Mining is committed to supporting the industry on every step of its decarbonisation journey.

Photo credit: Getty Images

BHP to receive ‘world’s first carbon neutral conveyor belts’ from China’s Wuxi Boton

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China’s Wuxi Boton has announced the world’s first carbon neutral conveyor belts for delivery to BHP’s Spence copper mine in Chile in August as part of an exclusive pilot project between the two companies.

The two companies jointly developed this pilot project, under which the conveyor belts were verified by SGS, a leading testing, inspection and certification company, as meeting the requirements of PAS 2060:2014 (specification for the demonstration of carbon neutrality).

SGS awarded the world’s first certificate of “Achievement of Carbon Neutrality for Steel Cord Rubber Conveyor Belt” to a batch of belts produced by Boton for BHP. The conveyor belts will be shipped to BHP’s Spence copper mine, where they will be used in the production and transportation of Spence mining products to customers around the world, including China.

The scope of the pilot project was for Wuxi Boton, as the incumbent contractor for BHP’s operations at both Minerals Australia and Minerals America, to select the conveyor belts to be ordered by BHP and identify how to offset the estimated greenhouse gas (GHG) emissions associated with the production of those conveyor belts using high-quality carbon offsets prior to delivery.

BHP’s Group Procurement Officer, James Agar, said: “Wuxi Boton have been a reliable partner to BHP for over eight years, supplying high-quality conveyor belts to our assets in Australia and Chile. Both companies are committed to mitigating climate change in accordance with their respective climate targets and goals. This shared vision of a better world led Wuxi Boton, in December 2021, to extend the offer of an exclusive pilot to deliver a carbon neutral conveyor belt to BHP.

“The partnership with Wuxi Boton has been invaluable in helping BHP verify the feasibility of using high-quality carbon offsets to GHG emissions in our supply chain (Scope 3) and grow the potential demand for supplying ‘traced’, ‘low carbon’, or ‘carbon neutral’ products amongst our suppliers.”

Wuxi Boton’s Chairman, Zhifang Bao, said: “It is difficult for any enterprise to achieve low-carbon transformation on its own. Only by building a global platform, co-operating with the whole industry chain, and jointly exploring low-carbon technologies and road maps can we reach the other shore.

“Therefore, joint innovation is an inevitable choice. Instead of passively accepting, it is better to take the initiative to lead, which is a very important choice faced by enterprises all over the world. We are pleased to see that the partnership between BHP and Boton has expanded from a single business level to a strategic synergy level. In the journey of global energy transition, leading companies, including Boton and BHP, are jointly working towards building a more sustainable future.”

BHP achieves shipping first as it extends funding for steelmaking decarbonisation

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BHP has welcomed the arrival of MV Mt. Tourmaline – the world’s first LNG-fuelled Newcastlemax bulk carrier – that will transport iron ore between Western Australia and Asia from 2022.

The mining company has chartered five LNG-fuelled Newcastlemax bulk carriers from Eastern Pacific Shipping (EPS) for five years and awarded the LNG fuel contract to Shell.

On her maiden voyage, the vessel arrived at Jurong Port in Singapore for her first LNG bunkering operation (the process of fuelling ships with LNG) which will take place through the first LNG bunker vessel in Singapore, the FueLNG Bellina. FueLNG, a joint venture between Shell Eastern Petroleum and Keppel Offshore & Marine, operates the bunker vessel.

After LNG bunkering, the 209,000-deadweight tonne vessel will leave for Port Hedland in Western Australia for iron ore loading operations.

BHP Chief Commercial Officer, Vandita Pant, said: “BHP works with our suppliers to embed innovative and sustainable solutions in our supply chain. This vessel delivers significant improvements to energy efficiency and emissions intensity, as well as reduced overall GHG emissions in our value chain. These achievements demonstrate BHP, EPS and Shell’s shared commitment to social value through innovative emissions reduction initiatives.

“These LNG-fuelled vessels are expected to reduce GHG emissions intensity by more than 30% on a per voyage basis compared to a conventional fuelled voyage and will contribute towards our 2030 goal to support 40% emissions intensity reduction of BHP-chartered shipping of our products.”

EPS CEO, Cyril Ducau, said: “Today’s historic LNG bunkering is further evidence that the industry’s energy transition is in full swing. These dual-fuel LNG Newcastlemax vessels are a world’s first, but more importantly, they represent a culture shift in shipping and mining.”

In a separate announcement, BHP confirmed it would extend its partnership with the Centre for Ironmaking Materials Research (CIMR) at the University of Newcastle with a further A$10 million ($7 million) in funding to support ongoing research into decarbonising steelmaking.

The expanded research program will focus on low carbon iron and steelmaking using BHP’s iron ore and metallurgical coal, including conventional blast furnace ironmaking with the addition of hydrogen, and emerging alternative low carbon ironmaking technologies.

The collaboration, with funding from BHP’s $400 million Climate Investment Program, will last five years and help train the next generation of PhD researchers and engineers.

Dr Rod Dukino, BHP VP Sales & Marketing Iron Ore, said: “Greenhouse gas emissions from steelmaking represent around 7-10% of global total estimated emissions and the industry remains one of the most difficult sectors in the world to abate. Research and innovation have a critical role to play in accelerating the industry’s transition to a low carbon future.

“The expanded research program with the University of Newcastle complements BHP’s existing partnerships with our key steelmaking customers in China, Japan and South Korea. We are pursuing the long-term goal of net zero Scope 3 greenhouse gas emissions by 20501. Recognising the particular challenge of a net zero pathway for this hard-to-abate sector, we are continuing to partner with customers and others in the steel value chain to seek to accelerate the transition to carbon neutral steelmaking.”

Orica to install tertiary catalyst abatement tech at Kooragang Island ammonium nitrate plant

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Orica has announced plans to install an Australia industry first tertiary catalyst abatement technology, EnviNOx®, at its Kooragang Island manufacturing plant in New South Wales.

The technology, provided by thyssenkrupp Industrial Solutions, is designed to deliver up to 95% abatement efficiency, reducing the site’s total greenhouse gas emissions by almost 50%, Orica said.

The A$37 million ($27 million) spent on the Kooragang Island Decarbonisation Project, which will help accelerate Orica’s progress towards achieving its 2030 emissions reduction target, will see proven nitrous oxide greenhouse gas (GHG) emissions tertiary abatement technology installed at its Kooragang Island plant from 2022, with commissioning in 2023, Orica said.

To facilitate the project, the New South Wales Government’s Net Zero Industry and Innovation Program will co-invest A$13.06 million, together with Orica’s A$24 million, financed by a five-year debt facility provided by the Federal Government’s Clean Energy Finance Corporation. The Clean Energy Regulator has also approved the project as eligible to generate Australian Carbon Credit Units (ACCUs).

Viewed as a long-term aid for emissions reduction in high-pressure nitric acid manufacturing plants, the tertiary catalyst abatement technology uses catalytic decomposition to destroy nitrous oxide emissions. Nitrous oxide, generated as a by-product of nitric acid production, is the primary source of GHG emissions at the Kooragang Island facility.

The technology will be installed across all three nitric acid manufacturing plants used in the production of ammonium nitrate at Kooragang Island. It is designed to eliminate at least 567,000 t/y of CO2e from the site’s operations, with expectations of reducing the site’s total emissions by 48%, while delivering a cumulative emissions reduction of at least 4.7 Mt of CO2e by 2030 based on forecast production.

Orica Managing Director and Chief Executive Officer, Sanjeev Gandhi, said: “The Kooragang Island Decarbonisation Project is a powerful example of a public-private partnership towards decarbonisation and marks a critical step in achieving our medium-term 2030 emissions reduction targets and progress towards our net zero ambition. We’re committed to working with our stakeholders to forge a pathway towards a lower carbon future together.

“Thanks to the support of the New South Wales and Federal Governments we have been able to co-invest and move forward on implementing a significant decarbonisation project.”

New South Wales Treasurer, and Minister for Energy and Environment, Matt Kean, said: “This is a great example of what can be achieved by hard-to-abate industries transitioning towards net zero emissions, under our A$750 million Net Zero Industry and Innovation Program announced earlier this year.”

Gandhi added: “The project ensures our domestic manufacturing operations remain competitive in a low carbon economy, bringing with it significant environment and regional economic and social benefits. There are also benefits for our customers, by reducing the emissions intensity of our ammonium nitrate we are in a position to offer competitive and lower carbon-intensity ammonium nitrate products, helping them to achieve their sustainability goals.

“It also allows us to look at longer-term investments in technologies, including production of hydrogen from renewable energy.”

The Kooragang Island Decarbonisation Project was approved in March 2021 by the Clean Energy Regulator to participate in Australia’s carbon market. Orica is eligible to generate ACCUs and was awarded the first optional Carbon Abatement Contract under the Facility Method for the purchase of around 3.4 million ACCUs by the Australian Government. This approach has enabled investment confidence by managing ACCU price risk, it said.

The findings from the Kooragang Island Decarbonisation Project will serve as an important Australian industry case study, demonstrating the potential for tertiary catalyst abatement technology to be deployed more widely across the sector, Orica said.

Orica has also recently partnered with the Alberta Government in Canada to commission a similar tertiary catalyst abatement technology at its Carseland ammonium nitrate manufacturing, reducing emissions by approximately 83,000 t/y of CO2e. It has also assigned approximately A$45 million over the next five years in capital to deploy similar tertiary abatement technology across its Australian ammonium nitrate sites, including its Kooragang Island site.

Orica addresses Scope 1, 2 and 3 emissions in latest GHG reduction pledge

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Orica has announced its ambition to achieve net zero emissions by 2050, covering Scope 1 and 2 greenhouse gas (GHG) emissions and its most “material” Scope 3 GHG emission sources.

The ambition builds on Orica’s previously announced medium-term target to reduce Scope 1 and 2 operational emissions by at least 40% by 2030.

To advance its net zero emissions ambition, Orica says it will:

  • Continue to reduce its operational footprint: prioritising Scope 1 and 2 operational emissions reductions by deploying tertiary catalyst abatement technology, sourcing renewable energy and optimising energy efficiency and industrial processes;
  • Collaborate with its suppliers: as new and emerging technologies scale and become commercial, partner with suppliers to source lower emissions intensity ammonium nitrate (AN) and ammonia to reduce Orica’s Scope 3 emissions, which account for approximately 70% of Orica’s total Scope 3 emissions;
  • Prioritise lower carbon solutions: developing lower carbon AN, as well as new products, services and technology offerings to help customers achieve their own sustainability goals; and
  • Report progress: transparently disclose performance consistent with the recommendations of the Task Force on Climate-Related Financial Disclosure.

Orica Managing Director and Chief Executive Officer, Sanjeev Gandhi, said: “Our ambition of net zero emissions by 2050 shows our commitment to playing a part in achieving the goals of the Paris Agreement. This is a strong signal that the decarbonisation of Orica will, and must, continue beyond 2030 and requires a collaborative approach across all of our stakeholders.

“We’re making solid progress having already achieved a 9% emissions reduction in financial year 2020 (to June 30, 2020) and further reductions this financial year. We’ve taken our 2030 medium-term target and extended our planning over the long term, developing a credible roadmap to support our ambition to achieve net zero emissions by 2050.

“Over the next decade, Orica is deploying tertiary catalyst abatement, prioritising renewable energy opportunities and supporting a trial of carbon capture utilisation and storage technology. Beyond 2030, how we achieve our ambition is dependent on effective global policy frameworks, supportive regulation and financial incentives, and access to new and emerging technologies operating at commercial scale.

“Orica is a company with a long history of technical innovation which is already helping our customers improve mine site safety, productivity and efficiency. We will apply the same approach by deploying low-emissions technologies to our major manufacturing sites and working with our global suppliers and stakeholders on reducing the footprint of our supply chain.”

Orica says it has already undertaken several initiatives to drive action towards its medium-term target and support its 2050 net zero emissions ambition.

In FY2020, Orica’s Bontang AN manufacturing facility in Indonesia recorded a 43% reduction in net emissions and its Kooragang Island nitrates manufacturing plant (pictured below) in Australia achieved a 6.3% reduction in net emissions, by replacing and improving the performance of selective catalyst abatement technologies, the company said.

In partnership with the Alberta Government this year, Orica’s Carseland AN manufacturing facility in Canada has commissioned tertiary catalyst abatement technology, reducing emissions by approximately 83,000 t/y of CO2e.

Orica has assigned approximately A$45 million ($33 million) over the next five years in capital to deploy similar tertiary abatement technology across its Australian AN sites, which, it says, could deliver an annual reduction of 750,000 t CO2e.

Orica will also support the construction of a mobile demonstration plant of carbon capture, utilisation and storage technology at its Kooragang Island manufacturing facility, led by Mineral Carbonation International, in partnership with the Australian Government and the University of Newcastle. The plant is scheduled to be built on Orica’s Kooragang Island site by the end of 2023 and have direct access to some 250,000 t of captured CO2 from Orica’s manufacturing operations.

ICMM members pledge to reach ‘net zero’ by 2050 or sooner

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Members of the International Council on Mining and Metals (ICMM) have committed to a goal of net zero Scope 1 and 2 greenhouse gas (GHG) emissions by 2050 or sooner, in line with the ambitions of the Paris Agreement.

This landmark commitment was made in an open letter signed by the CEOs of ICMM’s company members.

Although the companies within ICMM have individual decarbonisation targets, which in some cases go beyond ICMM’s collective commitment, this represents a joint ambition.

“The rate and nature of the ultimate decline in emissions will vary across the different commodities and geographies represented by our diverse membership,” the ICMM says. “Yet our approach to individually setting and meeting targets will be consistent and include the following, no later than the end of 2023 where these do not already exist:

  • “Setting Scope 1 and 2 targets: we will build clear pathways to achieving net zero Scope 1 and 2 GHG emissions by 2050 or sooner, through meaningful short and/or medium-term target;
  • “Accelerating action on Scope 3 GHG emissions: we recognise that Scope 3 is critical to minimising our overall impact and we will set Scope 3 targets, if not by the end of 2023, as soon as possible. Although all Scope 3 action depends on the combined efforts of producers, suppliers and customers, some commodities face greater technological and collaborative barriers than others. We will play a leading role in overcoming these barriers and advancing partnerships that enable credible target setting and emission reductions across value chains;
  • “Covering all material sources: our targets will cover all material sources of emissions, aligning to the GHG Protocol definition of organisational boundaries and materiality;
  • “Focusing on absolute reductions: for some operations, intensity rather than absolute targets may be more appropriate in the short and medium term. Where intensity targets are used, we will disclose the corresponding absolute increase or decrease in GHG emissions;
  • “Applying robust methodologies: we will use target-setting methodologies that are aligned with the ambitions of the Paris Agreement and disclose in detail the assumptions we use; and
  • “Disclosing openly and transparently: we will report our progress on Scopes 1, 2 and 3 annually, obtain external verification over our performance, and report in alignment with the recommendations of the Task Force on Climate-related Financial Disclosures.”

These commitments are additional to and have been incorporated into an update of ICMM’s Climate Change Position Statement which had several pre-existing commitments on performance and disclosure. Action on climate change is an integral part of ICMM’s Mining Principles, representing the comprehensive commitment to a responsible mining and metals industry, it says.

Rohitesh Dhawan, CEO, ICMM, said: “As the suppliers of the minerals and metals that are critical to decarbonisation and sustainable development, we have a particular responsibility to minimise the impact of our operations on the environment. ICMM members’ collective commitment to net zero Scope 1 and 2 GHG emissions by 2050 is a pivotal moment in our history. We are speaking with one voice, representing approximately one third of the global mining and metals industry – including more than 650 sites in over 50 countries – so that we drive emissions reduction at a significant scale.

“ICMM members have and will continue to set meaningful short and/or medium-term targets to build clear pathways to achieving this goal, while also accelerating action on addressing Scope 3 emissions and enhancing disclosure. We encourage other mining and metals companies, suppliers and customers to join us in decarbonising commodity value chains so that we collectively accelerate climate action in our wider industry.”

Gonzalo Muñoz, UNFCCC High Level Climate Action Champion, added: “I welcome the leadership and joint ambition of ICMM members to commit to a goal of net-zero Scope 1 and 2 GHG emissions by 2050 or sooner, and I strongly encourage companies to set scope 3 GHG emissions reduction targets by the end of 2023. The High-Level Climate Action Champions encourage members to strive to set the most ambitious science-based targets possible in line with the criteria of the Race to Zero campaign.”