Teck aims to cut C02 emissions in coal supply chain
Teck Resources Ltd. (TECK.B-TSX, TECK.A-TSX, TECK-NYSE) and Danish shipping company NORDEN have pledged to reduce carbon dioxide (C02) emissions in Teck’s steelmaking coal supply chain.
The agreement is expected to reduce annual emissions from Teck shipments handled by NORDEN by 25%, or up to 6,700 tonnes of C02, equivalent to removing over 1,400 passenger vehicles from the road, Teck said in a press release.
NORDEN will achieve emission reductions by utilizing a range of solutions, including the use of fuel-efficient ships and alternative fuels such as biofuel in combination with an intelligent use of advanced data analytics to optimize vessel speed and routing.
“This innovative partnership with NORDEN is expected to reduce Scope 3 emissions associated with transportation of Teck’s steelmaking coal, reducing our carbon footprint and advancing progress developing green transportation corridors,’’ said Teck CEO Jonathan Price. “Working with transportation providers like NORDEN to reduce emissions downstream of our business furthers our progress towards achieving our net zero 2050 goal,” he said.
Teck ranks as the world’s second-largest seaborne exporter of steelmaking coal, with six operations in Western Canada and significant steelmaking coal reserves. They include Elkview, Fording River, Greenhills and Line Creek in southeastern British Columbia.
The company has said it expects to produce 24-26 million tonnes of steelmaking coal this year.
Steelmaking coal – or metallurgical coal – is a higher-grade coal which is a necessary component in the chemical reactions that transform iron into steel.
Coal production is currently shipped via three B.C. west coast ports including Ridley, Neptune and Westshore Terminals. Located in Delta, British Columbia, Westshore Terminals is Canada’s premier coal export terminal and handles over 33 million tonnes of coal annually.
Ridley Terminals is a Federal Crown Corporation, which owns and operates a marine bulk handling terminal on the west coast of B.C. The terminal has the ability to load vessels at rates of up to 9,000 tonnes per hour, unload cars at rates of up to 6,000 tonnes per hour and has an overall shipping capacity of 16 million tonnes.
Teck recently completed an $800 million expansion of the Neptune terminal in Vancouver. The expansion was facilitated by agreements that provide for investments by Canadian National Railway Co. [CNR-TSX, NYSE] (CN) to enhance the rail infrastructure and support increased shipment volumes to Neptune.
“With this initiative, we are now able to design customer-tailored freight emission contracts where we leverage our combined expertise to develop unique solutions that support our customers ambitions to lower their supply chain emissions,’’ said NORDEN CEO Jan Rindbo.