CBH leads Australia-first biofuel trial on sustainable barley shipment

A trial voyage using biofuel for the CBH Group, the largest agricultural co-operative in Western Australia, is being performed on the Edwine Oldendorff from Australia to Vietnam.

CBH has partnered with dry bulk operator Oldendorff Carriers to ship 30,000 tonnes of sustainably certified malting barley aboard the Edwine Oldendorff, which has departed from the Albany Grain Terminal bound for Vietnam on Sunday.

The vessel will be bunkered with an advanced biofuel blend for the trial, supplied by integrated energy company bp.

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

CBH Chief Marketing and Trading Officer Jason Craig said the co-operative was proud to be pioneering efforts, alongside two of its global partners, to explore ways to reduce its carbon footprint along the supply chain.

“Customers across the world are increasingly seeking to source sustainable products, including sustainable grain,” Craig said.

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

He explained that 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 as sustainable under the International Sustainability and Carbon Certification program, will be delivered to Vietnam’s leading malting company, Intermalt.

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,” 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 it produces.

“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,” Craig said.

Source: CBH Group