Greening minerals transport for the climate emergency 

More than half of the country’s coal mines are managed by pro-Russian separatist militia.

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The tender is in line with BHP’s new drive to boost green energy initiatives, following in the wake of its departure from the World Coal Association, as well as its pledge of $400m to develop emission-reducing technologies for its own operations - a decision that was also announced in July this year.

The measure also falls in line with a new requirement passed by the International Maritime Organization (IMO), which imposes lower limits on sulphur levels in maritime fuels as part of a wider push to meet clean air targets.

Speaking with IMO spokesperson Natasha Brown, she says the organisation supports BHP’s move: “It is clear that the global introduction of alternative fuels and/or energy sources for international shipping will be integral to achieve the overall ambitions set out in IMO’s initial strategy for reducing greenhouse gas emissions from international shipping. There is room for all options to be considered, including electric and hybrid power, hydrogen and other fuel types.”

While not entirely carbon-free, LNG would still provide a significant drop in emissions and would help companies meet clean energy targets. In BHP’s statement, Rashpal Bhatti, Vice President for Maritime and Supply Chain Excellence said: “While LNG may not be the sustainable homogenous fuel of choice for a zero-carbon future, we are not prepared to wait for a 100% compliant solution if we know that, together with our partners, we can make significant progress now.”

Looking forward, Brown says the IMO don’t yet have any indications that measures similar to BHP’s will be rolled out on a greater scale, saying: “We don’t have any forecasts for whether LNG will be taken up on an industry wide level.”

Yet an industry change certainly seems to be rumbling, and BHP’s tender could well be the beginning of a wider move away from carbon-intensive transportation systems.

“It’s phenomenal how quickly people are moving now,” says Simon Currie, founder and principal at energy advisory business Energy Estate. “Those industries that were traditionally seen as laggards (burning diesel, always burning diesel, never not going to be burning diesel) - these people are now moving.”

The development of clean transportation systems and autonomous driving have been motivating factors in the shifted focus, with companies such as Fortescue also looking at the development of hydrogen-based storage and vehicles.

“Let’s hope this is not a flash in the pan, but a sustained focus for these major players,” says Currie. “It could see benefits not just in Australia but also in other resources-dependent countries such as Chile, Brazil and South Africa. If the resources sector can begin to drive a new supply chain, this will make a massive difference.”

“Investor pressure is a big thing as well,” he adds. “Where governments are failing, investors are stepping up. Big businesses are blamed for so much, but it’s also these investors that may well be the ones who create some of the greatest change.”

The main obstacle, according to Currie, is the continued need for younger, new perspectives in a typically old business.

“Energy hasn’t changed their people, and neither have resources” he says. “We need fresh blood, different viewpoints to people who have been in the industry for decades.”

Improving the green reputation of Australia’s mining sector is crucial for the country on the global stage, particularly as countries are beginning to band together in their fight for cleaner air.

“Australia’s basically been laughed at throughout the New York Climate summit, because it’s just been seen as an outlier,” says Currie.

“(But) Australia’s absolutely at the cusp of things. We now have large-scale manufacturing and clean technologies proven to work, we only have to adopt them. The country’s universities have a strong resources and minerals focus, so you actually can get more of an alignment with the needs of minerals sector than other countries who may not have this same research focus. If you combine all this together, then you will end up with good overall outcomes for the mining sector.”