BHP and COSCO partner to charter two ammonia dual-fuel vessels, advancing maritime decarbonization and promoting zero-emission fuel adoption.
BHP has entered into charter agreements with COSCO Shipping Bulk Co., Ltd., a subsidiary of COSCO Shipping Group, for two state-of-the-art ammonia dual-fuelled Newcastlemax bulk carriers. These vessels will be among the first in the world capable of using ammonia as a marine fuel, marking a major milestone in maritime decarbonization. Scheduled for delivery in 2028, the ships will primarily carry iron ore from Western Australia to Northeast Asia.
When fueled with lower or near-zero greenhouse gas (GHG) emissions ammonia, these ships are expected to reduce GHG emissions by at least 50%鈥攁nd potentially up to 95%鈥攑er voyage, compared to traditional marine fuels. The five-year charter contracts support BHP鈥檚 broader strategy to reduce the GHG emissions intensity of its chartered shipping operations. This initiative is not only a significant move toward decarbonizing the maritime transport of iron ore, but also aligns with BHP鈥檚 goals under the First Movers Coalition. By 2030, BHP aims to have 10% of its product shipments on time-chartered vessels powered by zero-emission fuels.
The selection of COSCO Shipping followed a comprehensive tender process that evaluated safety, technical capability, and commercial viability. BHP and COSCO Shipping, which share a long-standing and collaborative relationship, will work closely with key regulatory agencies to ensure the successful and safe deployment of these ammonia-fuelled vessels.
In parallel, BHP is working with the industry to develop ammonia bunkering infrastructure鈥攖he refueling process for ammonia-powered ships. The sourcing of low or near-zero GHG emissions ammonia is currently underway through an open tender process.
This announcement reflects BHP鈥檚 continued commitment to accelerating the adoption of low-emission marine fuels, following its earlier initiatives such as the deployment of five dual-fuel LNG vessels and the use of biodiesel within its logistics network.
Emma Roberts, BHP Vice President Maritime and Supply Chain Excellence, expressed confidence in the collaboration: 鈥淭his marks a significant moment for BHP, COSCO Shipping, and the maritime sector. Together, we are advancing the industry鈥檚 transition to low-carbon shipping through these first-generation ammonia dual-fuel vessels. We see this as a pivotal step in developing ammonia as a marine fuel, strengthening demand, and fostering innovation across the maritime value chain.鈥�
Ji Lin, Vice President of COSCO Shipping, highlighted the strategic importance of the agreement:
鈥淥ur partnership reflects our shared vision for sustainable shipping and supports the Australia鈥揅hina Green Shipping Corridor. These vessels represent a leap in environmental and technological progress, helping us move closer to global climate targets and a net-zero future.鈥�
