Australian mining company Fortescue has signed an agreement with Bocimar, part of CMB.TECH, to charter a new dual-fuel vessel capable of running on ammonia.
The 210,000 deadweight tonnage Newcastlemax vessel is expected to be delivered to Fortescue by the end of next year and will play a vital role taking iron ore from the Pilbara to customers in China and around the world.
Fortescue said it is committed to eliminating Scope 1 and 2 emissions from its Australian iron ore operations by 2030. In order to eliminate Scope 3 emissions by 2040, it must eliminate emissions from shipping of its products to customers and from steelmaking.
Fortescue Metals CEO Dino Otranto said: “Our landmark agreement with Bocimar sends a clear signal to the market–now is the time for shipowners to invest in ammonia-powered ships,” Fortescue Metals CEO Dino Otranto.
According to Marine & Offshore Bureau Veritas, Ammonia can be a zero-carbon fuel from a well-to-wake perspective if it is produced from air and water using renewable energy. This is then known as “green ammonia.” Brown ammonia is produced using fossil fuels and is therefore not a zero-carbon fuel from a well-to-wake perspective. The partners did not say the ammonia they would be using is green ammonia.
Ammonia combustion releases no CO2. However, it may produce nitrous oxide (N2O), a gas 270 times more potent in terms of greenhouse effects than CO2; ammonia is highly toxic to both people and marine life; and it has about three times less energy density than conventional fuels so greater amounts must be carried onboard.
“Fortescue and Bocimar have been close partners for more than 20 years. We share the same values and are both passionate about decarbonising the maritime industry,” said Alexander Saverys, CEO of CMB.TECH.
