Australian mining company BHP has signed contracts with COSCO Shipping Bulk, a subsidiary of COSCO shipping Group for the charter of two ammonia dual-fueled Newcastlemax bulk carriers, primarily to transport iron ore from Western Australia to Northeast Asia.
According to the company, when run on ammonia, these vessels will be capable of reducing greenhouse gas (GHG) emissions by at least 50% and up to 95% on a per voyage basis compared to a conventionally fueled voyage.
The two vessels, expected to be delivered from 2028, are expected to contribute towards a reduction in the GHG emissions intensity of BHP chartered shipping. BHP is a part of the First Movers Coalition and has committed that, by 2030, 10% of its total products shipped to its customers using the company’s time charter vessels will be shipped using zero GHG emissions fuels.
“Together we are contributing to the industry’s ambition towards abatement of maritime greenhouse gas emissions through these first generation ammonia dual-fuelled vessels,” said BHP Vice President Maritime and Supply Chain Excellence, Emma Roberts. “We believe this investment will help to build momentum in the technology, strengthen the demand for ammonia as a marine fuel, and support the reduction of greenhouse emissions in the maritime value chain.”
COSCO Shipping Vice President, Ji Lin, said that ammonia is one of the most promising marine fuels with zero-carbon potential. “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. They represent a firm commitment to supporting the global climate and Chinese dual-carbon goal.”
