Fortescue, a major Australian mining company, has made a deal with the Belgian shipping group CMB.TECH to lease up to 12 large bulk carriers capable of running on ammonia. This is one of the biggest commercial moves t...
Fortescue, a major Australian mining company, has made a deal with the Belgian shipping group CMB.TECH to lease up to 12 large bulk carriers capable of running on ammonia. This is one of the biggest commercial moves towards using ammonia as a fuel for ships.
The agreement involves 12 Newcastlemax bulk carriers, each with a capacity of 210,000 deadweight tons. These ships will be operated by CMB.TECH's dry bulk division, Bocimar. The goal is to help reduce carbon emissions in bulk shipping and to promote ammonia as a zero-emissions fuel for the maritime sector.
According to the deal, up to three of the vessels will come with dual-fuel ammonia engines and are expected to start operating by the end of 2026. The other nine ships will be delivered with the ability to be upgraded to run on ammonia later on.
Fortescue estimates that if the fleet uses green ammonia, it could cut carbon dioxide emissions by approximately 250,000 metric tons each year compared to ships that use traditional marine fuels.
Katie Charuga, Fortescue’s Director of Integrated Operations, stated, “The shipping industry doesn’t need more talk. It needs action.” She emphasized that green ammonia offers a clear path to reducing emissions in shipping, and these vessels are a practical step toward that goal. By supporting new technologies and collaborating with forward-thinking partners, the company aims to increase the use of green ammonia in shipping.
Charuga also mentioned that Fortescue's experience with its test vessel, the Fortescue Green Pioneer, has shown that ammonia can be safely and effectively used in marine operations.
“The next challenge is to scale up the use of green ammonia,” she added. “By investing in ammonia-capable vessels and partnering with like-minded organizations, we are helping to create demand for green ammonia and support technologies that can reduce emissions in global shipping.”
This charter agreement marks another step in Fortescue’s efforts to make ammonia a viable marine fuel. In March 2024, the company conducted the world's first marine fuel test using ammonia at the Port of Singapore with the Fortescue Green Pioneer, a converted offshore support ship that underwent a seven-week trial in collaboration with the Maritime and Port Authority of Singapore.
During this trial, the vessel operated on a mix of ammonia and diesel after modifying two of its four engines to use the new fuel. The conversion and fuel systems received approval from DNV, earning the ship its “Gas Fueled Ammonia” designation, which marks a significant technical achievement for ammonia-powered shipping.
Ammonia is becoming increasingly popular in the maritime sector since it doesn’t contain carbon and, when made from renewable energy, can provide a near-zero emissions solution. However, there are still challenges regarding fuel availability, cost, safety regulations, and the creation of worldwide bunkering systems.