Tata Steel spearheads sustainability with LNG-powered bulk carrier

Marking a substantial stride towards a more sustainable future, Tata Steel becomes the first Indian enterprise to adopt LNG (Liquefied Natural Gas) as fuel for its bulk carrier, supplanting the conventional VLSFO (Very Low Sulphur Fuel Oil). This initiative signifies a new era in sustainable shipping practices in India and a remarkable progression in the nation’s maritime sector.

The LNG-powered vessel “MV Ubuntu Unity” successfully docked at Dharma port on July 24, 2023, offloading 165,700 metric tons of coal. The vessel’s arrival was overseen by Ranjan Sinha, Chief Group Shipping at Tata Steel, along with other high-ranking executives from Tata Steel and Dhamra Port. The company plans to import around 1 million tons of coking coal from Australia via such LNG-powered vessels in FY24. Dhamra Port extended particular privileges to the LNG vessel, thereby bolstering Tata Steel’s efforts to reduce Scope 3 emissions.

MV Ubuntu Unity, departing from Gladstone port on July 1, 2023, utilized LNG on its ballast leg and a mixture of LNG and traditional fuel on its laden leg, resulting in approximately 1,800 tons lesser carbon emission. This is a 35% reduction compared to conventional Baltic specification cape vessels.

Indian steel giant Tata Steel embraces LNG for bulk cargo, shaping a sustainable maritime future. Photo courtesy of Tata Steel.

Vice President of Group Strategic Procurement and Supply Chain at Tata Steel, Peeyush Gupta, stated, “In 2021, Tata Steel became the first in the Indian Steel Industry to deploy a ship powered by biofuel. We continued the decarbonation drive with 7 biofuel shipments in FY23. In continuation to our sustainability drive, in FY24, we are the first to deploy an LNG powered vessel for transportation of raw materials to India. This is a landmark initiative to lower the Company’s Scope 3 carbon footprint. With innovation and participation of all the partners, in FY24, we endeavour to perform 10% of our total number of shipments for imports through alternate fuel powered vessels.”

Tata Steel, having previously utilized a Bio-Fuel powered vessel in 2021, continues to lead the charge in sustainable maritime practices.