Finland-based stainless steel producer Outokumpu has announced that it has signed a new deal with Finnish shipping company Langh Ship to replace its current three cargo vessels with new ships to reduce carbon emissions in transportation. The first new ship will be taken into use in 2023. With these three new vessels, which will run on liquefied biogas, the company will reduce carbon emissions by 40 percent compared to the previous vessels.
According to the statement, the ships transport coils from the company’s mill in Tornio to its European hub in Terneuzen, the Netherlands, and return to Tornio loaded with recycled steel.
The company stated that the cargo ships take one tour between Tornio and Terneuzen every two weeks and that they transport an annual 1.6 million mt of cargo. With the new vessels, the capacity of each vessel rises to 7,250 mt from the current 6,000 mt, increasing the capacity of transport ships by 100,000 mt.
Outokumpu’s long-term climate target is to reduce its direct and indirect carbon emissions as well as those of its supply chain to reach carbon neutrality by 2050. This year, Outokumpu has committed to a more stringent climate target to keep global warming below 1.5 degrees. To this end, Outokumpu will further reduce its carbon emissions by 2030, approximately by 30 percent compared to 2020.