Fortescue has taken another step in its decarbonisation strategy, signing a landmark agreement with Bocimar, the shipping arm of CMB.TECH, to charter a new ore carrier powered by green ammonia.
The 210,000-deadweight tonne Newcastlemax vessel is expected to be delivered by the end of 2025 and will be used to transport iron ore from the Pilbara to customers in China and other global markets.
Equipped with a dual-fuel engine, the ship will be capable of operating on ammonia — a fuel that can be produced using renewable energy.
The agreement underscores both companies’ commitment to accelerating the adoption of zero-emission fuels and reducing the shipping sector’s reliance on traditional bunker fuels, which currently account for around three per cent of global carbon emissions.
Fortescue Metals CEO Dino Otranto described the deal as a “clear signal to the market” that the time to invest in ammonia-powered vessels is now.
“Our agreement with Bocimar is just the beginning and is a critical step in addressing our Scope 3 emissions,” he said. “Through the Fortescue Green Pioneer we have demonstrated that the technology to decarbonise shipping exists now.”
The Fortescue Green Pioneer, the world’s first class society-approved dual-fuel ammonia-powered vessel, has been docked in London since early March and is set to embark on a global port tour to raise awareness about clean marine fuels.
While Fortescue has committed to eliminating Scope 1 and 2 emissions from its Australian operations by 2030, reaching net zero Scope 3 emissions by 2040 will rely heavily on decarbonising its shipping activities and influencing steelmaking practices abroad.
Alexander Saverys, CEO of CMB.TECH, highlighted the long-standing relationship between the two companies.
“We share the same values and are both passionate about decarbonising the maritime industry,” he said.
“This is the beginning of an exciting journey to build more ammonia-powered ships that will stimulate more green ammonia production projects.”
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