Tag Archives: Peter Whitcutt

Anglo American and Salzgitter to explore iron ore’s role in low-carbon steelmaking

Anglo American has signed a memorandum of understanding (MoU) with Salzgitter Flachstahl to collaborate on the decarbonisation of the steelmaking industry by exploring ways to reduce carbon emissions.

Salzgitter Flachstahl manufactures a range of steel products optimised for their particular application and is the largest steel subsidiary in the Salzgitter Group, Anglo explained.

The two companies intend to conduct research into feed materials, including iron ore pellets and lump iron ores, suitable for use in direct reduction (DR) steelmaking based on natural gas and hydrogen, a significantly less carbon intensive production method than the conventionally used blast furnace process. The collaboration may also explore developing broader hydrogen technologies.

Peter Whitcutt, CEO of Anglo American’s Marketing business, said: “We have set ambitious targets to help address climate change by reducing our greenhouse gas emissions, including achieving carbon neutrality across Anglo American’s operations by 2040.

“While steel is a critical building block of our modern lives, and itself a critically needed material for the energy transition, the steel industry is a significant producer of carbon dioxide. That’s why we are committed to collaborating with industry-leading players like Salzgitter Flachstahl to develop strategies that capitalise on the premium quality properties of our products to help drive emissions reduction across the entire steelmaking sector.”

The MoU reinforces Anglo American’s existing commitments to the steelmaking industry, ensuring it continues to provide high-quality iron ore products that help drive efficiency and minimise emissions while new technologies are developed to achieve lower carbon steelmaking, the company said.

It also builds on the long-standing relationship between the two companies and provides a platform to explore opportunities for emissions abatement in the context of the sustainable energy transition.

Salzgitter, as part of the European steel industry, has been developing new steelmaking technologies to reduce its carbon footprint under its SALCOS® (Salzgitter Low CO2 Steelmaking) project. The project is targeting a switch from the use of blast furnace production based on coal to wholly DR steelmaking.

Ulrich Grethe, Chairman of the Management Board of Salzgitter Flachstahl GmbH and member of the Group Management Board of Salzgitter AG, said: “With this project we continue to progress important milestones on the way to low CO2 steel production. In driving our SALCOS technology concept forward, we aim to decarbonise steel production as efficiently and quickly as possible. We are delighted to be partnering with Anglo American, our long-standing major supplier of high-grade ores, for joint reflection and potential projects.”

DR steelmaking depends on high-quality iron ore feedstock, or further beneficiated feedstock from the same locations.

Anglo American tests out sustainable biofuel in shipping operations

Anglo American says it has successfully trialled the use of sustainable biofuel to power a chartered capesize ship during a voyage from Singapore to South Africa.

The biodiesel blend, produced by converting waste cooking oil from Singapore’s food and beverage industry, reduces carbon dioxide emissions compared with using 100% conventional marine fuel.

Peter Whitcutt, CEO of Anglo American’s Marketing business, said: “Low emission ocean freight is crucial in driving the long-term sustainability of the maritime industry. Shaping an effective transition requires a comprehensive framework of complementary solutions, in which alternative marine fuels have an important role to play.

“We are partnering with like-minded industry players to improve our understanding of factors likely to impact the future scalability of this solution. The success of this trial marks an important step forward in establishing biofuel as a viable option, aligned with circular economic principles. These efforts also reinforce our commitment as an organisation to reduce emissions across the entire value chain, as we work towards carbon neutrality across our operations by 2040.”

The trial conducted onboard the ‘Frontier Jacaranda’, a capesize bulk carrier owned by Japanese shipping company NYK Line, was instrumental in verifying the stability of the biofuel in storage and its performance as a fuel, Anglo said.

Data gathered is providing new insights into wider efforts to introduce biofuel to the maritime sector, paving the way to improving its cost-effectiveness and using higher percentage blends in future trials, the company added. The conversion of waste cooking oil into fuel for transportation aligns with the principles of the circular economy, by providing a fresh and environmentally beneficial use for what would otherwise be disposed of.

Toyota Tsusho Petroleum supplied the biodiesel blend, consisting of 7% biofuel and 93% regular fuel. This combination reduces carbon dioxide emissions by around 5%, is compliant with the International Standard Organisation’s requirement for marine fuels and requires no substantial engine modifications, according to the company.

Anglo American partnered with Singapore firm Alpha Biofuels, which converts waste cooking oil into biofuel, to blend this sustainable biodiesel via shore tanks in Singapore.

Anglo is investigating several ways through which to reduce carbon intensity in its ocean freight operations, including the use of ammonia as an alternative marine fuel, as well as adding capesize+ vessels into its chartered fleet fuelled by LNG which reduces CO2 emissions by approximately 35%.

WEF’s MMBI makes progress on emissions traceability with blockchain proof of concept

The World Economic Forum’s Mining and Metals Blockchain Initiative (MMBI) has released a proof of concept that uses distributed ledger technology to track embedded greenhouse gas emissions.

A collaboration between seven leading industry players and the World Economic Forum, the initiative has hit an important stage of development following its launch in October 2019, the WEF said.

The successful completion of the proof of concept, named the COT, which is a Carbon Tracing Platform, will be critical in helping to ensure traceability of emissions from mine to the final product. With a focus on end-to-end traceability, the COT platform uses distributed ledger technology to track CO2 emissions.

The founding members of the MMBI – Anglo American, Antofagasta Minerals, Eurasian Resources Group, Glencore, Klöckner & Co, Minsur, and Tata Steel – joined forces in October 2019 to design and explore blockchain solutions to accelerate responsible sourcing in the industry. By pooling resources and costs, the mining and metals companies aim to accelerate future adoption of a solution for supply chain visibility and environmental, social and governance requirements.

Developed in collaboration with industry experts, supported by the Dutch blockchain champion Kryha and Consortium Advisor Susan Joseph, it not only tests the technological feasibility of the solution, but also explores the complexities of the supply chain dynamics and sets requirements for future data use, the WEF said. In doing so, the proof of concept responds to demands from stakeholders to create ‘mine to market’ visibility and accountability.

Jörgen Sandström, Head of Mining and Metals Industry, World Economic Forum, said: “There is an increasing demand for metals and minerals, and an increasing demand for sustainable and responsible and traceable supply chains. There is a potential to create a full value chain view with downstream visibility, and, in partnering with regulators and aligning our work with robust ESG standards, sustainability certification schemes and assurance frameworks.”

This work lays the foundation for the next phase of the development and reinforces comprehensive feedback sessions with stakeholders. It also supports the MMBI vision to enable emissions traceability throughout complex supply chains and to create ‘mine to market’ visibility and accountability, it said.

Nadia Hewett, Blockchain Project Lead, World Economic Forum, added: “The distributed nature of blockchain technology enables cross-enterprise collaboration and makes it the ultimate networked technology. This opens exciting new possibilities that organisations otherwise would not have the capability to deliver on their own.”

Peter Whitcutt, Marketing CEO of Anglo American, said: “By leveraging cross-industry collaboration and the increasingly important role played by technology innovation, MMBI’s Proof of Concept can help to unlock the potential of blockchain to support a greater level of reporting transparency and drive responsible sourcing.”

Anglo American to introduce LNG into iron ore chartering fleet

Anglo American has announced the award of a 10-year charter contract for four LNG fuelled capesize-plus vessels, introducing LNG into its chartered fleet for the first time.

The new build LNG vessels offer significant environmental benefits, including a circa-35% cut in CO2 emissions compared with standard marine fuel, while also using new technology to eliminate the release of unburnt methane, or so-called “methane slip”, the company said.

Peter Whitcutt, CEO of Anglo American’s Marketing business, said: “Anglo American is committed to reducing emissions from its ocean freight operations and to playing a leading role in shaping a more sustainable future for the maritime industry. Today’s agreement is aligned with Anglo American’s goal to be carbon neutral across our operations by 2040 – as we work to reduce emissions not only at our production sites but also along our entire value chain – and builds on our track record of implementing concrete actions to deliver on the targets set by the International Maritime Organisation’s 2018 strategy.

“LNG is a readily available, commercially viable, lower emission solution which, combined with innovative technology designed to eliminate unburnt methane, will allow these new builds to provide a much improved environmental and more efficient performance.”

LNG marine fuel offers significant environmental advantages over heavy fuel oil – the most widely used fuel by vessels operating along sea trade routes – and is abundantly available through an established global network of existing infrastructure, according to Anglo American. Compared with conventional fuel options, the use of LNG eliminates sulphur oxides, considerably reduces nitrogen oxides and particulate matter from vessel exhausts and, as mentioned, cuts CO2 emissions by around 35%.

Designed to be larger than, but remain as flexible as, a conventional capesize vessel, the new builds will optimise cargo transport by increasing load and improving overall cost effectiveness. U-Ming Marine Transport will own the newly designed 190,000 DWT LNG fuelled bulk carriers. The fleet will be built by Shanghai Waigaoqiao Shipbuilding in China and is expected to be delivered in 2023.

The fleet is expected to carry up to 5 Mt/y of product, transporting iron ore from Anglo American’s operations in Brazil and South Africa to the company’s global customer base. The new builds will be flagged and registered in Singapore, which will also serve as prime bunkering port, thereby avoiding deviations from trading routes for refuelling purposes, the company said.

Earlier in October, Anglo American was among the founding signatories of the Sea Cargo Charter – created by some of the world’s largest energy, agriculture, mining, and commodity trading companies, with the aim of establishing a standard methodology and reporting framework to allow charterers to measure and align their emissions from ocean transportation activities.