BHP to charter two ammonia dual-fuel bulk carriers from COSCO

Australian mining company BHP Group has signed contracts with Chinese shipbuilder COSCO Shipping for the charter of two bulk carriers that can run on ammonia as well as conventional marine fuels.

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These ammonia dual-fuel vessels will be delivered from 2028 and will primarily transport iron ore from Western Australia to Northeast Asia, BHP said.

Both vessels will be charted for five years. When run on ammonia, these vessels will be capable of reducing greenhouse gas (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,” the company added.

Ammonia is widely transported as cargo but is still rarely used as a marine fuel due to limited engine technology and its highly toxic nature, which demands strict safety measures.

It is one of the many alternative fuels being considered by shipowners across the world, to reduce the sector’s carbon footprint, although widespread adoption is expected to take time.

By Aparupa Mazumder

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