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Australia’s first biofuel-powered grain shipment leaves Albany

Grain Central, January 10, 2022

A VESSEL powered by a biofuel blend is on its way from Western Australia to Vietnam as the first biofuel trial on a grain vessel exporting from Australia.

The trial partners CBH Group with leading dry-bulk operator Oldendorff Carriers, and has loaded 30,000 tonnes of sustainable-certified malting barley on behalf of CBH Marketing and Trading aboard the Edwine Oldendorff.

The vessel left CBH Group’s Albany Grain Terminal yesterday, and will be bunkered with a biofuel blend for the trial supplied by integrated energy company bp.

The blend is estimated to produce about 15 per cent less greenhouse gas emissions for this journey than conventional fossil fuels.

CBH chief marketing and trading officer Jason Craig said customers across the world were increasingly seeking to source sustainable products, including sustainable grain.

“It is our role, as Australia’s leading grain exporter, to take the necessary steps to lower carbon emissions along our supply chain.

“Biofuel is one low-carbon option that could be part of the solution to reducing emissions in the shipping industry.”

The malting barley, which is accredited under the International Sustainability and Carbon Certification program, is bound for Vietnam’s leading malting company, Intermalt.

It is owned by Intergrain, a joint venture between CBH Group and Indonesia’s Salim Group, and located at Cai Mep Port.

Intermalt services a number of brewing customers, the largest being Heineken, which has set a target of a carbon-neutral value chain by 2040.

“We need to meet the growing market demand for sustainable or carbon-reduced grain by being proactive, practical and adapting,” Mr Craig said.

“By doing this, we are making sure we can continue to keep our WA growers competitive.”

The trial will provide information on how the vessel engine responds to biofuel, its speed and efficiency, and measure the emissions produced.

“We are excited to be working alongside our key global partners to conduct this trial, which will provide valuable information and help pave the way for a more sustainable grain industry,” he said.

“We are very pleased to be collaborating with industry leader CBH to trial biofuel in our vessel, Edwine Oldendorff,” Oldendorff Carriers Melbourne managing director Ben Harper said.

“Collaboration is crucial for us all to learn and share information about the best paths in our efforts to decarbonise the supply chain.”

In 2020-21, CBH sold 1.2 million tonnes of sustainably certified grain and reduced Scope 1 and 2 carbon emissions on a per-tonne basis by 38pc from the previous year.

“Our increased focus on sustainability means our co-op will remain strong for future generations and Western Australian growers are well placed to meet future market expectations,” Mr Craig said.

Source: CBH Group

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