Fortescue to charter new ammonia-powered ore carrier
Fortescue Partners with Bocimar for Green Shipping
Fortescue Metals Group (ASX: FMG) has taken a significant step towards sustainable shipping by signing an agreement with Bocimar to charter a new vessel powered by green ammonia. This partnership aims to support the decarbonization of the maritime industry, with the new 210,000 dwt Newcastlemax vessel expected to be delivered by the end of 2026. The ship will play a vital role in transporting iron ore from Fortescue’s Pilbara operations to its global customers.
Commitment to Decarbonization
Fortescue is committed to eliminating scope one and two emissions from its Australian iron ore operations by 2030, with a goal of achieving net zero scope three emissions by 2040. The latter includes emissions from global shipping and steelmaking, which presents a more complex challenge, extending the timeline for achieving these targets by an additional decade. Fortescue’s CEO, Dino Otranto, emphasized the urgency of transitioning away from traditional bunker fuel, which contributes to 3% of global emissions. He stated, “The days of operating on dirty bunker fuel are numbered,” urging shipping regulators to take decisive action to facilitate this transition.
The new vessel will feature a dual engine capable of running on ammonia produced from renewable energy sources. This aligns with Fortescue’s broader strategy to lead in the adoption of zero-emission fuels. The company has already made strides in this area with the acquisition of the Fortescue Green Pioneer, the world’s first dual-fuel ammonia vessel, which will embark on a global tour to promote the need for zero-emission fuels in shipping.
Otranto noted that the partnership with Bocimar marks the beginning of a critical journey towards reducing scope three emissions. He expressed confidence in the existing technology to decarbonize shipping, stating, “Through the Fortescue Green Pioneer, we have demonstrated that the technology to decarbonise shipping exists now.” The collaboration with Bocimar aims to accelerate the transition to low and zero-emission vessels, further promoting green ammonia as a viable marine fuel.
Shared Vision for a Sustainable Future
CMB.TECH, the parent company of Bocimar, has a long-standing relationship with Fortescue, with both companies sharing a commitment to decarbonizing the maritime sector. CMB.TECH CEO Alexander Saverys highlighted the importance of their partnership, stating, “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 emphasized the need to decarbonize today to ensure a sustainable tomorrow.
This agreement is seen as a pivotal step in the journey towards building more ammonia-powered ships, which will, in turn, stimulate the production of green ammonia. As the maritime industry faces increasing pressure to reduce its carbon footprint, initiatives like this one are crucial for fostering innovation and achieving sustainability goals. Fortescue and Bocimar’s collaboration exemplifies how strategic partnerships can drive the transition to cleaner energy solutions in shipping.
