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Tata Steel deploys its first Bio-Fuel powered ship for imported raw material transportation

Tata Steel deploys its first Bio-Fuel powered ship for imported raw material transportation

~ A first in the Indian Steel Industry ~

Kolkata, December 6, 2021: In line with its sustainability objectives and initiatives on reduction of scope 3 Greenhouse Gas (GHG) emission in ocean trade, Tata Steel has deployed a ship powered by biofuel. The bulk carrier named Frontier Sky, owned by NYK and operated by Tata NYK Shipping Pte. Ltd., has successfully completed trial use of biofuel to transport cargo provided by Tata Steel. The voyage involved a cargo of ~1,60,000 tonnes of coal transported from Gladstone, Australia to Dhamra, India.

Tata Steel’s objective to reduce scope 3 emissions in marine transportation matched those of NYK, who wanted to further verify safe vessel operation along with GHG emission reduction during its second successful trial use of biofuel. NYK provided technical support including biofuel refueling arrangements and engine operation planning. Tata NYK provided operational know how and extensive support during the entire voyage. The knowledge gained from this test voyage will be shared between the three companies, and they will continue to collaborate towards decarbonisation.

Biofuels are carbon-neutral because the carbon dioxide that is absorbed by the source of the biomass is equal to the carbon dioxide that is released when the fuel is burned. GHG emissions are expected to be reduced by ~9% when biofuels are used as compared to traditional bunkers.

Commenting on the achievement, Peeyush Gupta, Vice President Supply Chain, Tata Steel, said: “The encouraging results of the trial is a validation of the intent with which all three partners have collaborated to reduce carbon emissions in their operations. For addressing scope 3 emissions, the subject can only be solved through innovation and participation of all parties involved.

Ranjan Sinha, Chief Group Shipping and Director Raw Material Procurement, Tata Steel, said: “Establishing the Proof of Concept (PoC) for alternate fuel is a first step in driving our sustainabllity efforts in shipping. We are delighted to partner with Tata NYK on this pathbreaking trial and hope to leapfrog from POC to large scale implementation in near future.

Earlier this year, Tata Steel signed a Memorandum of Understanding (MoU) with Mitsui O.S.K. Lines (MOL), a global marine transport group, to develop and deploy environment friendly shipping solutions. The Company also became the first steel producer in the world to join the Sea Cargo Charter (SCC) to reduce ‘Scope 3’ greenhouse gas emissions in ocean trade.

About Tata Steel

Tata Steel group is among the top global steel companies with an annual crude steel capacity of 33 million tonnes per annum. It is one of the world's most geographically diversified steel producers, with operations and commercial presence across the world. The group recorded a consolidated turnover of US $21.06 billion in the financial year ending March 31, 2021.

A Great Place to Work-CertifiedTM organisation, Tata Steel Ltd., together with its subsidiaries, associates, and joint ventures, is spread across five continents with an employee base of over 65,000.

Tata Steel has been a part of the DJSI Emerging Markets Index since 2012 and has been consistently ranked amongst top 5 steel companies in the DJSI Corporate Sustainability Assessment since 2016. Besides being a member of ResponsibleSteelTM and worldsteel’s Climate Action Programme, Tata Steel has won several awards and recognitions including the World Economic Forum’s Global Lighthouse recognition for its Jamshedpur, Kalinganagar and IJmuiden Plants, and Prime Minister’s Trophy for the best performing integrated steel plant for 2016-17. The Company, ranked as India’s most valuable Metals & Mining brand by Brand Finance, featured amongst CII Top 25 innovative Indian Companies in 2020, received rating of ‘A-‘ (leadership band) from CDP for its Climate Change disclosure and Supply Chain disclosure, Steel Sustainability Champion 2020 recognition from worldsteel, ‘Most Ethical Company’ award 2021 from Ethisphere Institute, Best Risk Management Framework & Systems Award (2020) from CNBC TV-18, and Award for Excellence in Financial Reporting FY20 from ICAI, among several others.


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