South32 and KCC Chartering have signed a six-year contract of affreightment (COA) for shipments of caustic soda to the Worsley Alumina refinery in Western Australia.
The COA establishes a framework for how KCC, a subsidiary of Klaveness Combination Carriers ASA, 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, as well as arrangements for how to cooperate to reach the set targets.
It also includes an ambition to jointly establish a pathway towards future zero-emission freight.
“We are pleased to continue our relationship with KCC and our joint efforts to reduce greenhouse gas emissions in the maritime supply chain,” South32 chief human resources and commercial officer Brendan Harris said.
“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.”
KCC has serviced Worsley Alumina with four generations of combination carriers on a continued basis for more than 30 years.
“This contract marks another important milestone in the longstanding relationship between South32 and KCC,” KCC chief executive officer Engebret Dahm said.
“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 per cent lower carbon footprint than competing tanker vessels.”
KCC’s combination carriers are built for the transportation of both wet and dry bulk cargoes, being operated in trades where the vessels efficiently combine dry and wet cargoes with minimum ballast.