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As Western Australians prepare for more shocks at the petrol station with the price of fuel set to increase once again due to the ongoing war in the Middle East, Klaveness Combination Carriers chief executive Engebret Dahm understands the situation in the Strait of Hormuz better than most.
One of the company’s ships was trapped in the Middle East Gulf since the start of the conflict in February this year, before finally safely exiting the area late in June.
KCC was a frequent visitor to the region, delivering WA alumina to the area on a regular basis, where the export was one of the company’s major markets until the war began.
“Our company is probably the biggest shipper of alumina to the Middle East,” Dahm said.
“Unfortunately, at the moment, it’s not working as it should because we can’t take the ships through the Strait of Hormuz.”
With fresh concerns growing over the price of oil due to the conflict, KCC has launched a brand-new vessel that aims to use wind technology that the company believes will not just reduce emissions, but also improve fuel efficiency on its voyages between China and Australia.
Equipped with the first wind-assisted propulsion system in KCC’s fleet and a range of advanced energy efficiency technologies, MV Baltazar was officially launched at Fremantle Port this week, with WA Deputy Premier Rita Saffioti given the honour as the ship’s “Lady Sponsor” at its naming ceremony.
As part of the ceremony, a portrait of the state’s deputy premier is on show in the ship’s mess and she is considered a permanent, although honorary, member of the crew.
According to the company, due to the ship’s trading area, size and advanced energy efficiency measures including suction sails, MV Baltazar has the lowest carbon footprint of any vessel in these trades.
The company is currently working with several WA-based importers and exporters, including Alcoa, South32, Fenix Resources, Wesfarmers and CSBP, in addition to shipping some grain for CBH.
Dahm said Fremantle was chosen as the place for the ship’s launch due to the number of customers and clients that were able to be in attendance, while also honouring the connection the company has with the state’s local ports.
In Western Australia, the ship delivers caustic soda and fertiliser products to clients at Bunbury, Kwinana, Fremantle and Geraldton ports. It then exports iron ore, alumina and grains among its dry goods.
South32 and the shipping company have jointly developed a mechanism called the carbon adjustment factor to link freight paid to the carbon emission performance of KCC’s vessels relative to an agreed baseline.
The deal results in KCC being paid a higher rate if greenhouse gas freight emissions are below the baseline or a lower rate if emissions exceed the baseline.
Dahm said companies like South32 are focusing on reducing the carbon footprint of the supply chain, and believes KCC’s new ship technology will be able to deliver for the client.
However, he stressed that the ship is about to undergo its maiden voyage which will give KCC a better understanding of how the technology will improve energy efficiency and reduce emissions.
“We think the wind is probably one of the more promising types (of fuel efficiency measures),” he said.
“If you add up all the different initiatives, you probably come up to between 12 and 13 per cent reduction, depending on how they impact each other.”
Dahm said the vessel is also prepared for future retrofitting to enable the use of zero or near-zero emission fuels.
“If you take the wind, the potential, the shaft generator, you’re probably talking about $8 or $9 million,” he said.
“We have an estimate to make the ships one of the most energy-efficient ships in the world.”
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