BHP has signed charter contracts with COSCO Shipping Bulk, a subsidiary of COSCO Shipping Group, for two ammonia dual-fuelled Newcastlemax bulk carriers.
To reduce greenhouse gas emissions (GHG) from maritime shipping, the vessels are among the first in the world capable of using ammonia as its marine fuel.
These vessels are scheduled for delivery from 2028 and will primarily transport iron ore from Western Australia to northeast Asia.
These first-generation ammonia dual-fuelled vessels are expected to reduce GHG emissions by at least 50 per cent and up to 95 per cent on a per voyage basis compared to a conventionally fuelled voyage, according to BHP.
The five-year time charter contracts represent a key step in BHP’s push to decarbonise its iron ore value chain and align with its First Movers Coalition commitment, which is to have 10 per cent of its total products shipped to customers via the time charter vessels using zero GHG emissions fuels by 2030.
BHP vice president maritime and supply chain excellence Emma Roberts described the charter as a milestone for the industry.
“This is an exciting moment for BHP, COSCO Shipping and the maritime sector,” Roberts said.
“Together we are contributing to the industry’s ambition towards abatement of maritime greenhouse gas emissions through these first-generation ammonia dual-fuelled vessels.
“As one of the world’s largest dry bulk charterers, BHP sees this as an opportunity to help establish a pathway for ammonia to be a marine fuel for a globally significant industry where emissions can be difficult to abate.”
COSCO Shipping vice president Ji Lin said the deal is more than just a step towards alternative fuels.
“It’s a symbol of how our collaboration is evolving with the times,” Lin said.
“These vessels will stand at the forefront of technological and environmental advancement – not just for COSCO Shipping and BHP, but for the broader dry bulk sector.”
BHP continues to develop an ammonia bunkering plan by working with the maritime industry and is sourcing for lower and low to zero emissions ammonia.
