CBH Group Trials Biofuels to Cut Maritime Emissions in Grain Exports to Europe

Australia’s CBH Group has partnered with shipping companies NORDEN and Oldendorff to launch a biofuels insetting pilot aimed at reducing emissions in its maritime grain supply chain. The initiative, described as the first of its kind in Australia, uses waste-based biofuel voyages and book-and-claim solutions to transport Western Australian grain to the European Union. According to CBH, the biofuel-powered voyages have achieved notable emission reductions compared with conventional fossil fuels, without increasing costs for Western Australian growers. The move responds to new European Union regulations that apply to all ships over 5,000 gross tonnage calling at EU ports. The rules form part of the EU’s “Fit for 55” climate package, which targets a reduction in carbon dioxide emissions from maritime transport. Shipping companies that do not use renewable fuels are subject to penalties, a cost that many industry players have opted to absorb rather than switch to biofuels. CBH Head of Shipping Pia Van Wyngaard said the co-operative has worked with its partners to apply biofuels expertise to reduce supply chain emissions and maintain access to key markets such as Europe. Eight voyages transporting grain from Western Australia to Europe have so far used the insetting method.