A TRIAL voyage using biofuel for grain industry co-operative CBH Group, is being performed on the Edwine Oldendorff from Australia to Vietnam. The vessel loaded 30,000 tonnes of sustainably certified malting barley from the Albany Grain Terminal in Western Australia for discharge in Vietnam using biofuel, supplied by BP.

The vessel was bunkered with an advanced biofuel blend, which is expected to result in 15% emissions avoided compared to conventional fossil fuels, according to the supplier.

This trial of a second-generation biofuel will help to test the biofuel supply chain and also provid both CBH and Oldendorff Carriers greater experience with the practical issues involving voyages powered by renewable energy blends.

The emission reduction potential has been analysed as part of Oldendorff Carriers’ research agreement with MIT in Cambridge, Massachusetts.

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

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

Jason Craig, chief marketing and trading Officer of CBH said, “Customers across the world are 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 will be delivered to Vietnam’s leading malting company, Intermalt. It services a number of brewing customers, the largest being Heineken, which has also set a target of a carbon neutral value chain by 2040.

In 2020-21 CBH sold 1.2 million tonnes of sustainable certified grain and reduced Scope 1 and 2 carbon emissions on a per tonne basis by 38%.

“We need to meet the growing market demand for sustainable or carbon reduced grain by being proactive, practical and adapting. By doing this, we are making sure we can continue to keep our Western Australian growers competitive.” Mr Craig said.

In separate news, CBH announced on 14 January that it has commenced construction at its new granular and liquid fertiliser Urea Ammonium Nitrate (UAN) storage facility, located adjacent to the Kwinana Grain Terminal.

CBH chief Ben Macnamara said, “The facility will enable the expansion of our fertiliser business, which last year achieved a 47% increase in sales.

“This new phase of growth will see the business enter the liquid fertiliser market for the first time, and expand its granular fertiliser offering to provide consistency of supply and deliver on our strategy to reduce on-farm input costs for Western Australian grain growers.” 

Overall, the 70,000-square-metre development includes construction of:

  • A UAN ship unloading and transfer pipeline, which runs along the existing Kwinana Grain Terminal jetty.
  • Approximately 55,000 tonnes of granular fertiliser storage in a new warehouse.
  • 32,000 tonnes of UAN storage in two 16,000 tonne storage tanks, and administration office, landscaping, and security.

The construction schedule will see the UAN storage tanks completed first, with construction due to be completed in 2023.