Fortescue to charter new ammonia-powered ore carrier

Fortescue (ASX: FMG) has signed an agreement with Bocimar to charter a new green ammonia-powered vessel.

This agreement aligns with the progress both companies are making to decarbonise the shipping industry.

Bocimar is a division of CMB.TECH, a diversified group striving to decarbonise the maritime industry, that owns and operates bulkers that transport coal and iron ore.

Fortescue is anticipating the delivery of the 210,000 dwt Newcastlemax vessel by the end of 2026.

This vessel will become a crucial element in the shipment of iron ore from the Pilbara to Fortescue’s international customer base.

The highly efficient carrier features a dual engine that can run on ammonia produced by using renewable energy.

The company has voiced its commitment to eliminating scope one and two emissions from its Australian iron ore operations by 2030.

The company is also striving towards net zero scope three emissions by 2040.

The challenge of eliminating scope three emissions, from global product shipping and from steelmaking, is reflected by the extra decade it is anticipated to take to reach this goal.

Fortescue Minerals chief executive Dino Otranto said that this landmark agreement with Bocimar advocates the urgency to invest in ammonia-powered ships.

“The days of operating on dirty bunker fuel, which is responsible for 3% of global emissions, are numbered,” he said.

“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 three emissions.”

The acquisition of the world’s first-class society approved dual-fuel ammonia vessel, the Fortescue Green Pioneer, has cemented the company as a global leader in the early adoption of zero emission fuels.

These fuels include green ammonia, which is widely considered to be the long-term solution for sustainable and net-zero fuel.

The Fortescue Green Pioneer is set to embark on a global tour of international ports to raise awareness towards the immediate need to transition to zero emissions fuels.

“Through the Fortescue Green Pioneer we have demonstrated that the technology to decarbonise shipping exists now,” said Mr Otranto.

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

CMB.TECH chief executive Alexander Saverys said that the companies have been close partners for over two decades and share the same passion for decarbonising the maritime industry.

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

“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.”