Teck Resources (TSX: TECK.A and TECK.B, NYSE: TECK) and Oldendorff Carriers have announced an agreement to employ energy efficient bulk carriers for shipments of Teck steelmaking coal from the Port of Vancouver to international destinations to reduce CO2 emissions in the steelmaking coal supply chain.
This initiative is expected to achieve a CO2 emissions reduction of 30 – 40% for shipments handled by Oldendorff. The estimated savings can be of up to 45,000 tonnes of CO2 per year, equivalent to removing nearly 10,000 passenger vehicles from the road, the companies said in a media release.
Oldendorff’s fleet of approximately 700 ‘Eco’ bulk carriers from Handy size to Cape size gives Teck shipping flexibility and reduced carbon intensity on each voyage. The CO2 reductions represent Scope 1 emissions for Oldendorff and Scope 3 emissions for Teck.
“Partnering with Oldendorff to reduce the emissions associated with transportation of our steelmaking coal is one of the ways Teck is reducing our carbon footprint and taking action on climate change,” said Teck CEO Don Lindsay. “As part of our climate strategy, we are committed to working with transportation providers to reduce emissions downstream of our business.”
Peter Twiss, CEO of Oldendorff Carriers said through working with the Teck logistics team and challenging fundamental logistic concepts, they were able to develop an environmentally optimized delivery program.
“Using our fleet of ‘Eco’ bulk carriers in this re-envisioned delivery program, the CO2 emissions will be reduced significantly,” Twiss said.
Teck has goals to reduce carbon intensity across operations by 33% by 2030 and be a carbon-neutral operator by 2050.