Fortescue has signed an agreement with Bocimar to charter a new ammonia-powered vessel in bid to decarbonise the shipping sector.
Bocimar is a division of CMB.TECH that owns and operates bulkers, as well as transports coal, iron ore, grain and minor bulks.
As per a new agreement between Fortescue and Bocimar, a Newcastlemax vessel with a 210,000-deadweight-tonnage capacity is expected to be delivered to Fortescue by the end of 2026.
Featuring a dual-fuel engine capable of operating on ammonia created through renewable energy, the vessel is set to play a vital role in transporting iron ore from Fortescue’s Pilbara operations to customers in China and the rest of the world.
“Our landmark agreement with Bocimar sends a clear signal to the market – now is the time for shipowners to invest in ammonia-powered ships,” Fortescue Metals chief executive officer (CEO) Dino Otranto said.
“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.”
The agreement follows more than 20 years of collaboration between Fortescue and CMB.TECH.
“We share the same values and are both passionate about decarbonising the maritime industry,” CMB.TECH CEO Alexander Saverys said.
“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.”
Fortescue is currently working towards eliminating Scope 1 and 2 emissions from its Australian iron ore operations by 2030 and reaching net-zero Scope 3 emissions by 2040.
As part of these objectives, Fortescue is advocating for the early adoption of zero emission fuels like green ammonia.
“Our agreement with Bocimar is just the beginning and is a critical step in addressing our Scope 3 emissions,” Otranto said.
“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.”
Saverys echoed similar sentiments.
“This is the beginning of an exciting journey to build more ammonia-powered ships that will stimulate more green ammonia production projects,” Saverys said.
“We need to decarbonise today to navigate tomorrow.”
The Newcastlemax ammonia-fuelled vessel follows Fortescue’s Green Pioneer vessel, which has been in London since early March. The vessel will soon embark on a tour of global ports to advocate for the transition towards zero emissions fuels.
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