Low Carbon Logistics Programme
For customers looking for low and zero carbon emissions, APM Terminals is rolling out a Low Carbon Logistics programme. The programme works by replacing energy from fossil fuels used at our terminals, with energy from renewables such as renewable electricity, recycling waste products for fuels, and investments in solar energy at our terminals where we cannot buy renewable electricity.
Our zero-emissions programme therefore differs from climate compensation schemes, which offset emissions with things like reforestation initiatives made outside of our company’s value-chain. Such schemes are very important, but our primary focus is removing emissions at source (Insetting rather than Offsetting). We are also prioritising solutions that create additionality - where we stimulate wider adoption and development of sustainable energy supplies within society.
How do our customers benefit?
Through our Low Carbon Logistics program we collaborate with customers to achieve zero CO2 emissions per TEU. The solutions depends on a number of factors such as where the remaining emissions currently come from and the amount that needs to be reduced. Scope 1 emissions are those from owned or controlled sources. Scope 2 covers indirect emissions from the generation of purchased electricity, steam, heating and cooling consumed by the reporting company. Scope 3 includes all other indirect emissions that occur in a company's value chain. We will look at the options for customers to use our global operational footprint to achieve those final emission reductions - to get to zero.
This could be by "dropping in" waste cooking oil diesel into container handling equipment in another terminal where supplies of a verified sustainable waste oil diesel are available, or it could be through further investment in solar or other renewable electricity generation at another terminal where this is most effective. With the Scope 3 element of those emission reductions going to the specific partner enrolled in the program.
How will we remove emissions?
APM Terminals Gothenburg provides a good working example. In 2021, it took the decision to switch to 100% renewable electricity supplies, 100% biogas for heating, and 100% used cooking oil diesel for use in our mobile container handling equipment. This enabled us to directly reduce the CO2 emissions of our container handling operations from around 10kgCO2/TEU to <1kgCO2/TEU. European emission averages are around the 12-16kgCO2/TEU across the industry.
In other terminals, where access to accredited renewable resources aren't currently available, we've taken other steps. For example at APM Terminals Onne, Nigeria we recently installed mobile harbour cranes to provide an alternative to ship-gear operations. This is more efficient and reduces CO2 emissions overall. We are also completing an upgrade from Reach Stacker to RTG operations. This is calculated to reduce our emission intensity by just over 20%. Our projected emissions are 23kgCO2/TEU on average from May – December 2021, down from around 30kgCO2/TEU which had previously been achieved with new mobile harbour cranes, terminal tractors and reach stackers.
Our Low Carbon Logistics programme is already implemented in the Green Gothenburg Gateway, the first climate neutral terminal in Sweden, and is being actively rolled out to other terminals. There are a number of ways customers can benefit from the programme without it increasing their cost base, from contract lengths to volumes incentives.
In addition to reducing carbon dioxide emissions, our zero-emissions programme also reduces our impact on local air-quality. Our decarbonisation pathways analysis shows us that a 40% reduction in our CO2 emission equates to a 30% reduction in NOx, a 80% reduction in SOx, and a 60% reduction in PM10 emissions. The fuels and electricity used in our Low Carbon Logistics program are verified externally by RSB, and our carbon accounting by PwC annually.
Our climate initiatives, including Low Carbon Logistics programme, can therefore be translated into measurable value for our customers, in the form of externally verified Scope 3 emission savings for your operations, and a lower carbon footprint for your goods.