SSAB and Aspo ESL Shipping to reduce CO2 emissions

SSAB and Aspo Group’s ESL Shipping Ltd have signed a long-term frame agreement covering sea freight for SSAB’s inbound raw material sea transport within the Baltic Sea and from the North Sea. The purpose of the agreement is to secure deliveries of raw materials, enable mutual, long-term gains in efficiency and to reduce overall logistics costs. This will simultaneously make raw material logistics as sustainable and environmentally aware as possible. The estimated transport volume is 6-7 million tpy.

The new combined sea freight agreement will result in a reduction of more than 50% in CO₂ emissions per t of cargo transported compared to present vessels. Besides these environmental benefits, the cost savings provided by new technology will also allow better profitability.

“We are extremely pleased to continue our long-established sea transport partnership with SSAB. Together we will make shipping more sustainable and environmentally aware than ever before,” commented Aki Ojanen, Chairman of the Board of ESL Shipping and CEO of Aspo Group.

“This new combined agreement is a solid example of SSAB’s sustainability strategy in action. The agreement with ESL Shipping secures deliveries of coking coal, iron ore and PCI coal to SSAB’s coking plants and blast furnaces in Raahe, Luleå and Oxelösund,” said Per Bondemark, Chief Procurement Officer at SSAB.

The cost savings related to this agreement is part of SSAB’s synergy program announced in conjunction with the merger with Ruukki in 2014. The new agreement will result in ESL Shipping building two new, energy-efficient LNG-fueled ships. The two ships are expected to be delivered during 2018.

Edited from press release by Angharad Lock

Read the article online at: https://www.worldcoal.com/handling/26112015/ssab-and-aspo-esl-shipping-to-reduce-co2-emissions-1696/