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Ørsted launches programme for carbon neutral supply chain by 2040

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Ørsted launches programme for carbon neutral supply chain by 2040. Image: Orsted
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Renewable energy company Ørsted targets carbon neutral energy generation by 2025 and now sets out to work with its suppliers to decarbonise the supply chain by 2040.

Companies will have to cut emissions faster and further across their operations and supply chains if the world is to limit global warming to 1.5°C by reaching net-zero emissions in 2050. Ørsted, one of the world’s largest renewable energy companies and recently named the most sustainable company in the world, has announced that it will be carbon neutral by 2025 and will reach net-zero emissions across the company’s entire carbon footprint by 2040.

Ørsted’s carbon footprint is comprised of two parts: The company’s own emissions from energy generation and operations; and the emissions from the energy traded by the company and the goods and services in its supply chain. On track to be carbon neutral in energy generation and operations by 2025, the company wants to cut energy trading and supply chain emissions in half by 2032 and then down to net-zero emissions by 2040.

Henrik Poulsen, CEO of Ørsted says:

“It’ll be challenging to reach a carbon neutral footprint by 2040, and it’ll require significant innovation in all parts of our supply chain. Many of the green technologies to be used to decarbonise our supply chain exist but they’re not yet cost competitive. With the 2040 target, we want to help drive the necessary innovation forward to mature the green technologies in the industries that supply to us.”

Supplier engagement program

As Ørsted phases out trading of natural gas and accelerates the build-out of renewables, supply chain emissions will increasingly come into focus, the company outlines in its 2019 Sustainability Report.

To decarbonise the supply chain, Ørsted is now launching a programme with the aim of engaging its strategic suppliers in the most carbon-intensive categories of the Ørsted supply chain: the manufacture of wind turbines, foundations, substations and cables. These are produced using steel, aluminium and copper, among other materials, which are energy intensive to extract and manufacture. The second largest source of supply chain emissions is the fossil fuels used by the maritime vessels that transport and install offshore wind components.

“Reducing emissions in the renewable energy supply chain is a significant task. Businesses will need to collaborate across supply chains to cut emissions at the pace and scale demanded by science. We now reach out to our industry-leading suppliers to join forces to accelerate the global green transformation,” says Henrik Poulsen.

In its supplier engagement programme, Ørsted will ask its strategic suppliers to:

  • disclose their own emissions and set science-based carbon reduction targets
  • use 100% renewable electricity in the manufacture of wind turbines, foundations, cables, substations and components
  • optimise their current vessel fleet and develop a roadmap to power vessels with renewable energy.

Ørsted has more than 22,000 suppliers, with strategic suppliers constituting 50% of the company’s total procurement spend. Ørsted will also encourage its remaining suppliers to reduce the carbon impact of their goods and services and is strengthening the sustainability criteria in the company’s procurement tenders.

Ørsted’s carbon emission reduction targets are science-based targets approved by the non-profit Science-Based Targets initiative (SBTi). The SBTi has validated Ørsted’s targets and classified them as more ambitious than a well below 2°C trajectory. Moreover, the initiative has preliminarily concluded that Ørsted’s targets align with 1.5°C, with SBTi’s methodology to assess this alignment to be launched later in 2020.

Read Ørsted’s 2019 Sustainability Report: Carbon neutral to stop global warming at 1.5°C for more details on Ørsted’s decarbonisation targets and initiatives.

Targets in Ørsted’s decarbonisation programme
By 2023

  • Phase out coal completely. Over the past decade, Ørsted has shut down three coal-fired power plants in Denmark. Power plants that play a key role in generating heat to Danish households and industry have been converted from coal to certified sustainable biomass. One remaining coal-fired power plant will be shut down by 2023.

By 2025

  • Carbon neutral operations and energy generation.
  • By phasing out fossil fuels and installing 20GW of renewable energy, carbon emissions will have been reduced by at least 98% by 2025, as compared with 2006.
  • Continue to reduce carbon emissions beyond 98% by switching to a fleet of electric vehicles in the company car fleet, in line with the EV100 requirements, and finding other reduction opportunities in the energy generation and operations.
  • Offset any residual emissions through verified, measurable and additional carbon removal projects.

By 2030

  • Build more than 30GW of green energy across technologies – enough to power more than 55 million people.

By 2032

  • Reduce emissions from energy trading and in the supply chain by 50%, as compared with 2018, to align carbon reductions across the entire carbon footprint with the 1.5°C pathway.

By 2040

  • Carbon neutral footprint a decade ahead of the 1.5°C pathway by driving out remaining emissions from energy trading and from the supply chain.

Environment

World’s first zero-emission top handles performing well at Port of Los Angeles

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World's first zero-emission top handles performing well at Port of Los Angeles. Image: Port of Los Angeles
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The world’s first zero-emissions top handlers, unveiled last fall as part of a pre-commercial demonstration project at the Port of Los Angeles, are now being used in daily operations at the Everport Container Terminal.

“We are pleased with performance results that we are receiving from drivers, mechanics and Everport management as the equipment is tested daily in real-world conditions,” said Port of Los Angeles Executive Director Gene Seroka.  “We are doing everything possible to advance commercially feasible solutions to meet our goal of transitioning all cargo-handling equipment to zero emissions by 2030.”

The two battery-electric top handlers were designed and built in the U.S. by Taylor Machine Works, Inc. a leading heavy-duty equipment manufacturer and the largest supplier of top handlers in service at the Port. Also known as top picks, top handlers are off-road vehicles with an overhead boom for loading containers weighing up to 100,000 pounds onto trucks and trains, unloading them, and stacking them on terminals between pickups and deliveries.

The top handlers run on a one-megawatt battery designed to operate for up to 18 hours between charges. Each top handler has a data logger for tracking hours of operation, charging frequency, energy usage and other performance indicators. Additionally, drivers and mechanics are providing input on the maneuverability, noise level and safety of the equipment.

The battery-electric top handlers are a key component of the Port’s $7.7 million Everport Advanced Cargo-Handling Demonstration Project. The California Energy Commission is supporting the large-scale zero-emissions technology project with a $4.5 million sustainability grant.

The Everport demonstration is one of 16 projects in which the Port is either the lead agency or a participant working with multiple partners to test near-zero emissions and zero-emissions engines, emissions control technology, and alternative fueling and charging stations. In addition to the battery-electric top handlers, the projects include testing ultra-low NOx renewable natural gas equipment and fully battery-electric fuel cell heavy-duty trucks; battery-electric forklifts, yard tractors, and rubber-tired gantry cranes; and emissions control equipment on large ships and harbor craft.

Eliminating tailpipe emissions from cargo-handling equipment is essential to achieving the Port’s larger goal of reducing greenhouse gases from all port-related sources. Port targets call for reducing GHGs 40% below 1990 levels by 2030 and 80% below 1990 levels by 2050.

The Port of Los Angeles remains open with all terminals operational during the COVID-19 pandemic. North America’s leading seaport by container volume and cargo value, the Port of Los Angeles facilitated $276 billion in trade during 2019. San Pedro Bay port complex operations and commerce facilitate one in nine jobs in the five-county Southern California region.

 

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Evergreen joins the Ship Recycling Transparency Initiative

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Evergreen joins the Ship Recycling Transparency Initiative. Image: Wikimedia/ Alpsdake
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Evergreen Marine Corporation (Taiwan) Ltd. has become a signatory to the Ship Recycling Transparency Initiative in order to share its aged vessels’ green recycling policy. The move is part of Evergreen’s avowed commitment to plan a completely sustainable life cycle for its vessels from design, construction, operation and ultimately to decommissioning.

The SRTI, hosted by the Sustainable Shipping Initiative, is an online platform via which members report information on their ship recycling policies and activities against a set of predefined disclosure criteria.

In the interest of transparency, Evergreen and other participating shipowners can share their approach to this critical component of environmental and socially responsible ship operations. Cargo owners and financial stakeholders, in turn will have access to this information in order to make their own informed decisions.

In announcing its decision to join SRTI, Evergreen said “We have had a long-standing commitment to ‘Clean Oceans’. Embodied in this goal is a mission to ensure responsible and sustainable operations wherever they touch the environment, whether at sea or on land, and to care for the people we employ and the communities we serve.”

When planning its current fleet renewal strategy therefore, Evergreen not only requires strict recycling standards for those vessels being disposed of, but also incorporates state-of-the-art design into its newbuildings so as to minimize the impact of container shipping operations both on marine life, on port communities and on humanity worldwide.

In this regard Evergreen invests in measures that go beyond environmental regulations, for instance, the new 12,000-TEU class F-type vessels, of which the 1st in the series is already in service network since March of this year, are equipped with a Selective Catalytic Reduction reactor system.

Such technology ensures that the vessels meet MARPOL nitrogen oxide emission Tier III standards, which is above the current Tier II requirements. In addition, Evergreen voluntarily ensure that all newbuildings and the ships already in service, no matter on which service trade they will be deployed, will be provided an Inventory of Hazardous Materials Part 1 for Class approval and SoC for certification.

Such consideration of the environmental impact of a vessel’s operation throughout its life-cycle is the driving force behind the latest SRTI move. “When a vessel is decommissioned and recycling is planned, not only can valuable and reusable resources be recovered but potentially dangerous waste and pollutants must be processed properly.” Evergreen goes on to say. “Recycling operations with the highest standards of safety available must be utilized. “We are therefore pleased to share our recycling policies by joining SRTI and helping lead a growing industry initiative to demand more responsible ship recycling in the future.”

In a statement welcoming Evergreen, Andrew Stephens, Executive Director of the Sustainable Shipping Initiative said, “Evergreen Marine joins a growing SRTI family that includes like-minded shipowners who are holding themselves to account before key stakeholders, including clients, investors and the wider public. This includes an increasingly diverse range of stakeholders engaging on the topics of data and transparency, circularity, and the role of financial stakeholders in sustainable and responsible ship recycling in the absence of global regulation.”

True to both its name and the corporate philosophy established by group founder and chairman Dr. Y.F. Chang, Evergreen recognizes its ecological obligations and will continue to maintain the best possible care in sustaining an ‘ever green’ global environment.

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Environment

Ship recycling in Bangladesh leaps forward with third phase of key project signed

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Ship recycling in Bangladesh leaps forward with third phase of key project signed. IMO
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The third phase of an IMO-implemented project to enhance safe and environmentally sound ship recycling in Bangladesh has been given the go-ahead, with Norway committing approximately US$1.5 million (14 million Norwegian Kroner) to support improved ship recycling in Bangladesh.

The agreement between IMO and the Government of Norway to support Phase III of the project on Safe and Environmentally Sound Ship Recycling in Bangladesh (SENSREC) was signed on 24 July 2020. This will pave the way for Bangladesh to move forward on its path towards becoming a party to the IMO Hong Kong Convention, the treaty that will set global standards for safe and environmentally-sound ship recycling.

The Agreement follows the successful implementation of Phase I (2015-17) and Phase II (2018 – 2020) of the SENSREC Project, both mainly funded by Norway. With the additional funding, Phase III of the project will be implemented over 18 months, starting from November 2020.

SENSREC Phase III will focus on improving ship recycling standards in compliance with the Hong Kong Convention and enhancing capacity building for the Government of Bangladesh on legislation and knowledge management. Specific technical assistance will be provided to the Government of Bangladesh to establish a facility for treatment, storage and disposal of hazardous wastes. There will also be a focus on evaluating the impact of Covid-19 on the ship recycling industry in Bangladesh.

The Ambassador of Norway to Bangladesh, Ms Sidsel Bleken, said that the SENSREC Project had already achieved significant progress, thanks to the commitment of the Government authorities as well as the ship-recycling industry of Bangladesh.

“Norway is pleased to extend its support to Bangladesh and our thanks go to IMO for their important role in this Project. Through IMO, we will continue to support the authorities, the industry, and other stakeholders in strengthening their efforts to develop Bangladesh’s ship-recycling industry and the country’s economy. We hope to see more yards complying with the requirements of the Hong Kong Convention, so that Bangladesh can be ready to accede to the Convention in the soonest possible time,” Her Excellency Ms Bleken said.

The Agreement was signed by the Her Excellency Ms. Bleken and IMO Secretary-General Mr. Kitack Lim.

Thanking the Government of Norway for their generous contribution, Mr. Lim said, “The continuation of this project will greatly enhance national capacities for Bangladesh for safe and environmentally sound recycling of ships. The success of this Phase III of the project will be seen in the crucial technical assistance role that will support the goals of Bangladesh to establish a facility for treatment, storage and disposal of hazardous wastes and ultimately support its aim to accede to the Hong Kong Convention.”

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