Raízen and KCC embark on sustainability-driven contract of affreightment
The deal aims to significantly improve trading efficiency and reduce the carbon footprint by up to 40%, exceeding IMO’s targets of shipping carbon intensity reductions by 2030
Image: KCC CLEANBU MV Bangus
Oslo, 15 February 2022: KCC Chartering AS, a subsidiary of Klaveness Combination Carriers ASA (“KCC”), and Raizen, an integrated energy company with a broad portfolio of renewables, have signed a three-year contract of affreightment (“COA”) for the shipment of liquid and dry products from the Raízen portfolio to multiple strategic markets.
The COA forms the basis for a long-term partnership and is aimed at improving voyage efficiency to reduce both the carbon footprint of KCC’s fleet and Raizen’s operations. The combination of shipments, with minimum ballast and wait time in between, is expected to reduce CO2 emissions per ton of cargo transported by up to 40%, depending on the route and when compared to standard tankers and dry bulk vessels performing the same trades. To achieve this reduction, KCC’s combination vessels transport both dry and liquid cargo by loading the ship with one product to a specific location and returning with another, thereby ensuring the vessels are constantly loaded. The parties aim to achieve further emission reductions by setting forth ambitions for a long-term co-operation on energy and operational efficiency initiatives, as well as the potential testing of new fuel types.
This move reinforces Raízen's commitment to seek sustainable solutions, as it leverages its vast product portfolio to combine both wet and dry cargoes by utilizing KCC’s combination carriers to their maximum voyage potential. Paulo Côrte-Real Neves, Raizen VP of Trading commented: "As part of our efforts to navigate and lead the global energy transition, specifically maritime decarbonization, we are excited to partner with KCC to reduce CO2 emissions in the shipping and maritime industry. Our shared commitment to sustainability and innovation makes this partnership a natural fit, and we are confident that it will have a positive impact on the environment and the industry."
Engebret Dahm, CEO of KCC adds: “We are delighted to join forces with Raizen, a leader in sustainability in both the energy and shipping markets. Together, we will address inefficiencies in shipping and deliver on our joint commitments towards decarbonization. The COA marks a major milestone in the development of KCC’s CLEANBU business for important trades in the region.”
About Raízen
Raízen is a global benchmark in bioenergy with an integrated business ecosystem. From the cultivation and processing of sugarcane in our bioenergy parks, to the sales, logistics and distribution of fuels, Raizen continually invests in innovation to reshape the future of energy. Through advanced technologies, Raizen seeks to play a leading role in the energy transition by expanding its portfolio of renewable energy sources, such as second-generation ethanol (2GE), biogas, bioelectricity and solar energy. By doing so, Raízen has already avoided the emission of 5.2 million tonnes of C02 per year (reference: 2020); by 2030, we aim to avoid twice this amount. With a team of 40,000 employees, Raizen operates 35 bioenergy parks with an installed sugarcane crushing capacity of up to 105 million tonnes. In the 2020-2021 crop year, they produced 2.5 billion liters of ethanol and 4.4 million tonnes of sugar. Raizen is one of the largest companies in Brazil in terms of revenue (R$ 114.6 billion in the last crop year); creating jobs and income, driving the economy, and investing in social responsibility via the Raízen Foundation.
About Klaveness Combination Carriers ASA
KCC is the world leader in combination carriers, owning and operating eight CABU and eight CLEANBU combination carriers. KCC’s combination carriers are built for transportation of both wet and dry bulk cargoes, being operated in trades where the vessels efficiently combine dry and wet cargoes with minimum ballast. Through their high utilization and efficiency, the vessels emit up to 40% less CO2 per transported ton compared to standard tanker and dry bulk vessels in current and targeted combination trading patterns