Vale Looks to Convert VLOC's to Use LNG Bunkers

by Ship & Bunker News Team
Monday September 29, 2014

Brazilian mining giant Vale SA (Vale) Tuesday announced in Melbourne it will fit its fleet of Valemax Very Large Ore Carriers (VLOCs) with technology to use Liquefied Natural Gas (LNG) bunkers, Australian news outlet Sydney Morning Herald reports.

"Our new generation of large ships are (sic) very important, it is probably our biggest opportunity to reduce carbon dioxide emissions in our value chain," said Stephen Potter, Vale's Director of Strategic Planning.

"We do it for money as well, they are much more competitive. Brazil faces a desperate disadvantage compared to Australia being on the other side of the world from China," he continued.

"We hope to take it further, we are hoping to convert our vessels to LNG," added Potter, though no timetable was reported.

Vale recently agreed a deal to use VLOCs to carry iron ore into Chinese ports in a bid to cut unit costs through economies of scale and the use of more efficient technology.

According to Potter, the new Valemax vessels are expected to reduce Vale's costs, being 35 percent less carbon intensive than more commonly used Capesize vessels.

Earlier this year Chinese researchers said they had devised a fuel saving design for VLOC's that could be used on the Brazil-China route.

Ship & Bunker News Team
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