CBH, NORDEN, and Oldendorff launch Australia’s first maritime biofuel pilot, reducing emissions while maintaining competitiveness for WA grain exports.
In a pioneering step towards sustainable shipping, Australia’s largest grain exporter and co-operative, CBH Group, has initiated a biofuel-based maritime pilot project in collaboration with global shipping companies NORDEN and Oldendorff. This initiative marks an Australian-first in biofuel insetting within the maritime grain export industry and aims to significantly lower emissions in CBH's international supply chain.
Through the use of waste-based biofuels and book-and-claim accounting methods, CBH successfully transported grain from Western Australia (WA) to the European Union (EU) while achieving considerable reductions in greenhouse gas emissions. The use of these low-carbon fuels did not incur any additional costs for WA growers, making the project both environmentally responsible and economically feasible. The effort responds directly to stringent new environmental mandates from the EU targeting vessels exceeding 5,000 gross tonnage that dock at European ports.
These new EU regulations fall under the ‘Fit for 55’ initiative—part of the broader European Green Deal—which seeks to cut carbon dioxide emissions across various sectors, including maritime transport. Under these rules, ships not utilizing renewable fuels are liable for emissions penalties. Interestingly, many shipping companies have opted to pay these penalties rather than transition to biofuels, but CBH’s collaboration with NORDEN and Oldendorff sets a new precedent by actively choosing a cleaner alternative.
Pia Van Wyngaard, CBH’s Head of Shipping, emphasized the importance of strategic partnerships in realizing sustainable operations. “We are proud to participate in initiatives that reduce our environmental impact while retaining operational efficiency and delivering value to Western Australian growers,” she stated. She further underscored that customers, regulators, and communities alike are increasingly demanding stronger sustainability credentials, and CBH is proactively working to align with these expectations.
Mrs. Van Wyngaard highlighted that projects such as this not only align with CBH’s sustainability roadmap but also help ensure that WA growers remain globally competitive, particularly in environmentally conscious markets like Europe. “By reducing our carbon footprint, we’re also preserving market access and supporting long-term growth for our growers,” she added.
To date, a total of eight grain voyages from WA to Europe have incorporated the biofuel shipping insetting strategy. These voyages demonstrate the viability of using alternative fuels in commercial-scale operations and may serve as a model for other exporters seeking to navigate tightening international climate regulations.
CBH's partnership signals a promising direction for the grain export sector and broader shipping industry, showing how collaborative, innovative efforts can drive meaningful environmental change without compromising economic performance.
