BHP to charter ammonia dual-fuel vessels from Cosco

Australian mining company BHP Group has signed an agreement to charter two ammonia-capable bulk carriers from China’s COSCO Shipping Bulk.

IMAGE: A couple of COSCO container ships docked at a port. COSCO

The vessels will be used to transport iron ore from Western Australia to Northeast Asia.

“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,” Emma Roberts, vice president at BHP said.

Ammonia in the iron ore trade lane

BHP becomes yet another Australian mining company betting on ammonia as a bunker fuel to cut supply chain emissions.

Earlier this year, Fortescue signed an agreement with CMB.Tech to charter a 210,000-dwt ammonia-capable vessel. The ship is scheduled for delivery by the end of 2026 and will be used to transport iron ore from Fortescue’s Pilbara operations to customers, primarily in China.

There are currently three ammonia-capable vessels in operation and another 37 on order for delivery towards 2029, according to DNV data.

By Konica Bhatt

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