Tanker owner International Andromeda Shipping is moving into carbon trading.
The Monte Carlo-based company has formed a joint venture with Swiss trader Trasteel to provide charterers with carbon credits to offset their emissions.
The company will give charterers of Andromeda's vessels the chance to make zero-carbon voyages.
The company has established the project after enquiries from leading charterers and commodity traders including Trafigura, Vitol, Glencore and Gunvor.
Andromeda is yet to conclude its first trade under the carbon offsetting scheme.
"We have to see what the response on the market from traders and end users will be," said Andromeda chief operating officer Mario Guglielmini.
Pricing of the carbon credits will be dictated by the voluntary carbon credit markets, he said.
He added that Andromeda and its joint venture partner are prepared to co-invest in the trades in order to show a commitment to the project.
Act fast
Andromeda recognises the need for the shipping industry to act fast to help reduce carbon emissions, Guglielmini said.
That should be attempted well before official regulations come into place in the near future, he added.
Voluntary carbon credits allow emitters to offset emissions.
Each credit — which corresponds to one metric tonne of CO2 or equivalent GHG — can be used to compensate for the emission of one tonne of CO2 or equivalent gases.
Such projects are growing in popularity among tanker owners looking to offer charterers the chance to offset their emissions.
Earlier this week, VLCC pool player Tankers International instigated a carbon offsetting collaboration with a Hartree Partners company.
Andromeda will apply the carbon trading scheme to its fleet of about 25 product tankers from 30,000 dwt up to 150,000 dwt.
The company also has a joint venture with Singapore-based shipowner Hafnia.
That company will shortly be taking delivery of the second of two MR tankers ordered at Hyundai Mipo Dockyard in South Korea.
The first, the 50,000-dwt Yellow Stars, was delivered in July 2021.
A second vessel, to be called PS Stars, will be delivered on 21 January.
