Bp To Supply Marine Biofuel To Rio Tinto To Help Reduce Carbon Emissions

Mining business Rio Tinto (RIO) and energy major bp (BP) on Monday announced a tie-up whereby bp will supply marine biofuel for a year to Rio Tinto to help reduce carbon emissions from Rio Tinto's marine fleet.

Financial terms of the deal are not yet known.

Rio Tinto's RTM Tasman vessel that operates on a mix of Transatlantic and Atlantic-Pacific routes, has been designated for the longest-duration marine biofuel trials to date. The extended trial agreement follows a successful journey on the RTM Tasman after it refueled with biofuel in Rotterdam in March 2022 for the first time and then picked up its first load of the trial at the Iron Ore Company of Canada's Sept-Iles port in Quebec in April.

Rio is aiming to reach net-zero emissions from shipping of its products to customers by 2050 and to introduce net-zero carbon vessels into its portfolio by 2030.

The trial uses a bp-manufactured B30 biofuel blend composed of 30 percent fatty acid methyl esters (FAME) blended with very low sulphur fuel oil (VLSFO), that can reduce lifecycle carbon dioxide emissions by up to 26 percent compared to standard marine fuel oil.

The trial would analyze a series of engine and fuel performance factors, including engine efficiency and fuel consumption, corrosion and degradation, microbial growth, temperature impact, fuel switching impacts and fuel stability.

Shares of Rio Tinto Group closed Friday's trading at $69.54. up $1.61 or 2.37 percent from the previous close. Shares of bp closed Friday's trading at $31.28 up $0.25 or 0.81 percent from the previous close.

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