Decarbonising business operations with LPG

Origin’s LPG business is a significant operation, with over 360,000 customers and 1,200 employees spanning seven countries. LPG has a complex supply chain which includes everything from transporting LPG on ships and trucks to our LPG terminals, to making sales to customers, and finally, the delivery of LPG we sell to homes and businesses.   

Introducing the GasChem Homer

Ships are a vital component in our LPG supply chain, helping to move LPG along Australia’s eastern seaboard and  several Pacific Island nations.  

To improve the fuel efficiency and lower the carbon emissions of our LPG operations, Origin will soon take delivery of three new LPG powered ships. The first of these ships, the GasChem Homer, is expected to arrive in Australian waters by the end of December 2021, with the GasChem Iliad and GasChem Odyssey due by the middle of 2022. 

These are the first ships of this size to be powered by LPG, and they produce significantly less emissions than ships run on conventional marine fuel oil, which means they’re better for the planet. 

In fact, the ships will reduce overall fuel consumption by about 8% compared to conventional powered ships – leading to a carbon emissions reduction of 20% in comparison to a marine oil fuelled ship. When running on LPG, these ships also eliminate sulfur oxide emissions and reduce nitrogen oxide and particulate emission by 95%. 

Our new shipping strategy means we’ll be using more LPG produced in Australia to deliver to our local customers, with increased onboard LPG storage and a reduction in time lost to refuelling. 

Helping our customers achieve their decarbonisation ambitions  

Not only are we working to decarbonise our own operations, but we’re also work with our customers to identify opportunities to reduce their emissions.   

It is commonplace for customers in remote locations to have diesel generators as back-up to solar and wind generation assets. We’re currently working with several customers to replace their diesel generators with LPG-powered units, helping to lower their emissions and fuel waste. 

We’ve also helped customers lower their emissions by replacing coal fuelled manufacturing processes with LPG. One customer in Queensland recently achieved a 33% reduction in Scope 1 emissions by transitioning from black coal to LPG supply for their onsite boilers.  

And for customers wishing to offset their carbon emissions by supporting projects that remove or reduce emissions going into the environment, we offer Green LPG. Our Green LPG product is certified under a framework that meets the Climate Active criteria and supports a range of ethical and sustainable project through the purchase of Australian Carbon Credit Units (ACCUs). 

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