Fortescue and CMB.TECH sign agreement for ammonia-powered ore carrier

Fortescue has signed an agreement with Bocimar, part of CMB.TECH, to charter a new ammonia-powered vessel. This emphasises the commitment of both companies to decarbonise the shipping industry.

The 210,000 dwt Newcastlemax vessel is expected to be delivered to Fortescue by the end of next year and will play a vital role taking iron ore from the Pilbara to customers in China and around the world.

The modern, highly efficient vessel will feature a dual-fuel engine, making it capable of operating on ammonia that can be created using renewable energy.

While Fortescue is committed to eliminating Scope 1 and 2 emissions from its Australian iron ore operations by 2030, its target of Net Zero Scope 3 emissions by 2040 reflects the challenge of eliminating emissions from the shipping of its products to customers and from steelmaking.

Fortescue has taken a global leadership position by advocating for the early adoption of zero emission fuels such as green ammonia, widely accepted as the long-term solution, and the bypassing of transitional fuels such as biofuels and LNG.

The Fortescue Green Pioneer, the world's first class society approved dual-fuel ammonia-powered vessel, has been in London since early March and will soon embark on a tour of global ports to bring attention to the need for a hastened transition to zero emissions fuels.

Fortescue Metals CEO Dino Otranto said: “Our landmark agreement with Bocimar sends a clear signal to the market – now is the time for shipowners to invest in ammonia-powered ships.

“The days of ships operating on dirty bunker fuel, which is responsible for three per cent of global carbon emissions, are numbered. We continue to implore shipping regulators to show the character and leadership that is necessary to ensure this happens sooner rather than later.

“Our agreement with Bocimar is just the beginning and is a critical step in addressing our Scope 3 emissions. Through the Fortescue Green Pioneer we have demonstrated that the technology to decarbonise shipping exists now.

“We will continue to work with like-minded companies like Bocimar to transition our fleet to low and zero-emissions vessels and help accelerate the widespread adoption of green ammonia as a marine fuel.”

Alexander Saverys, CEO of CMB.TECH, said: "Fortescue and Bocimar have been close partners for more than 20 years. We share the same values and are both passionate about decarbonising the maritime industry.

“Based on our common belief that green ammonia is the fuel of the future, we were able to conclude this important agreement on the road to zero emission shipping.

“This is the beginning of an exciting journey to build more ammonia-powered ships that will stimulate more green ammonia production projects. We need to decarbonise today to navigate tomorrow.”