21 April 2021
BHP has signed a Memorandum of Cooperation (MoC) with Singapore’s Maritime and Port Authority (MPA) to become one of the founding members of the Maritime Decarbonisation Centre to be set up in Singapore.
Under the MoC, BHP together with BW Group, Eastern Pacific Shipping, Ocean Network Express, Sembcorp Marine Ltd and The Foundation Det Norske Veritas have pledged to contribute S$10 million each to support the establishment of the centre and fund research and technology development projects in areas relating to decarbonisation in the maritime industry. MPA will add S$60 million R&D funding to these contributions, bringing the fund to a total of S$120 million.
The Maritime Decarbonisation Centre will be a focal point for the global maritime industry’s efforts in both decarbonisation and innovation, bringing together experts and the industry, including start-ups to develop technologies and co-create innovative solutions. The centre will collaborate with other maritime technology centres based in Singapore as well as decarbonisation centres around the world to share knowledge and build capabilities.
The centre will support trials of new fuels and technologies. It will include facilities for corporate labs, research facilities and house research offices and space for maritime tech start-ups.
MPA’s Chief Executive, Quah Ley Hoon, said: “Maritime decarbonisation is a global challenge requiring a collective responsibility from all stakeholders involved. It is crucial to have strong public-private sector partnerships. We thank like-minded partners like BHP that have responded strongly to our call for collaboration. The agreement signed today is a first step, which we hope will catalyse a larger, much needed momentum to make international shipping more sustainable.”
BHP is the only resources company that is part of the alliance and BHP’s Chief Commercial Officer, Vandita Pant, said the MoC is another step forward for industry leaders in taking action on decarbonisation and climate change.
“The pathway to decarbonisation in the maritime sector will accelerate with the innovation centre and the spirit of collaboration with which MPA and its partners are approaching and investing in new technology. The opportunity to achieve real reductions in industry footprint with this collaboration is great. It builds on a number of partnerships that BHP has struck across our value chain to seek to accelerate decarbonisation,” Ms Pant said.
BHP’s Vice President of Maritime and Supply Chain Excellence, Rashpal Bhatti, said: “BHP has a long and trusted relationship with MPA who has a strong commitment to bringing industry together to create a cleaner and greener industry. We are proud to join as a founding member of the Maritime Decarbonisation Centre in Singapore, a key maritime hub of the world. The MoC with MPA forms an integral component of BHP’s four pillars in our strategy for supporting decarbonisation of our maritime supply chain – data democratisation, onboard innovations, future fuels and chartering choices.”
BHP was part of the first marine biofuel trial involving an ocean-going vessel bunkered in Singapore on 4 April 2021 and has led the industry in its support for maritime emissions reduction initiatives, including awarding the world’s first LNG-fuelled Newcastlemax bulk carrier tender and the first LNG supply agreement for these LNG-fuelled iron ore vessels.
More information on BHP’s actions on climate is available here.
Further information on BHP can be found at: bhp.com
Background: BHP was one of the first multinational minerals resources companies to establish a significant presence in Singapore and has been an active member of Singapore’s thriving ecosystem for nearly 20 years. BHP Maritime, which is headquartered in Singapore, is responsible for the enterprise-wide transportation strategy and ocean freight chartering required to meet the BHP Group’s inbound and outbound transportation needs.