Fortescue and CMB.TECH sign agreement for ammonia-powered
CMB.TECH NV has entered into a significant agreement with Fortescue to charter a groundbreaking ammonia-powered vessel, marking a pivotal step towards decarbonizing the shipping industry. The 210,000-deadweight ton (dwt) Newcastlemax vessel, equipped with a dual fuel engine, is slated for delivery by the end of 2026. This collaboration underscores both companies’ commitment to sustainable practices in maritime transport.
Innovative Vessel to Enhance Iron Ore Transport
The newly chartered ammonia-powered Newcastlemax vessel is part of a series of large dry bulk carriers currently under construction at Qingdao Beihai Shipyard. This vessel will play a crucial role in transporting iron ore from Fortescue’s operations in the Pilbara region of Australia to customers in China and beyond. Fortescue has set ambitious targets to eliminate Scope 1 and 2 emissions from its Australian iron ore operations by 2030, with a broader goal of achieving Net Zero Scope 3 emissions by 2040. This latter target highlights the complexities involved in reducing emissions associated with shipping and steel production.
Fortescue is positioning itself as a leader in the global push for zero-emission fuels, advocating for the early adoption of green ammonia. This fuel is increasingly recognized as a long-term solution for the maritime industry, as it offers a cleaner alternative to transitional fuels like biofuels and LNG. The company’s commitment to sustainability is further exemplified by the Fortescue Green Pioneer, the world’s first dual-fuel ammonia-powered vessel, which has been touring global ports to raise awareness about the urgent need for a transition to zero-emission fuels.
Industry Leaders Call for Action on Decarbonization
Dino Otranto, CEO of Fortescue Metals, emphasized the importance of this agreement, stating, “Our landmark agreement with Bocimar sends a clear signal to the market – now is the time for shipowners to invest in green ammonia-powered ships.” He noted that the reliance on traditional bunker fuel, which contributes to 3% of global carbon emissions, is becoming increasingly untenable. Otranto urged shipping regulators to demonstrate the leadership necessary to accelerate the transition to cleaner technologies.
Alexander Saverys, CEO of CMB.TECH, echoed this sentiment, highlighting the long-standing partnership between Fortescue and Bocimar. He stated, “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.” Saverys expressed optimism about the potential for more ammonia-powered vessels, which could stimulate further green ammonia production projects. He concluded, “We need to decarbonize today to navigate tomorrow.”
