The State Government is leading a push to establish an LNG fuelling hub for bulk vessels in the Pilbara, potentially creating more than 100 local jobs and supporting global efforts to reduce carbon emissions, the company said in its release.
International Maritime Organisation regulations require trading vessels to reduce their greenhouse gas emissions, and the international shipping industry is turning to LNG as a transition fuel as it works towards clean hydrogen and other carbon-free fuels.
Building on the Pilbara's strength as a global LNG production hub, the McGowan Government will offer a 50 per cent discount in port dues to bulk vessels bunkering with LNG at Pilbara ports - saving each vessel around $20,000.
The discount comes into effect on July 1, 2020 and will remain in place for five years. If taken up, the discounts could be worth up to $5.3 million by 2025.
The Pilbara LNG Bunkering Hub could create up to 125 jobs in the Pilbara, including skilled mariners and support administration.
Transitioning iron ore exports shipped from the Pilbara from heavy fuel oil vessels to LNG fuelled vessels could reduce carbon emissions by up to six million tonnes per annum.
To help kick-start the shift to LNG fuelling in the Pilbara, the Pilbara Ports Authority has executed Australia's first ship-to-ship LNG bunkering services licenses to Woodside Energy at Port Hedland and Dampier.
The McGowan Government is also driving opportunities in green hydrogen in the Pilbara through the WA Renewable Hydrogen Strategy, creating future opportunities for carbon-free fuel in the region.