Fortescue signs up for CMB.TECH ammonia-powered newcastlemax

CMB.TECH, the shipowning vehicle controlled by the Saverys family, has signed an agreement with Australian miner Fortescue to charter an ammonia-powered vessel ordered in China.

The 210,000-dwt ammonia-powered newcastlemax will feature a dual fuel engine and is expected to be delivered by the end of 2026.

The Saverys family-controlled bulker arm, Bocimar, and Fortescue have signed an agreement for the vessel. It is part of CMB.TECH’s series of large dry bulk carriers, which is currently on order at Qingdao Beihai Shipyard and is expected to be delivered to Fortescue by the end of next year. It will deliver iron ore from Pilbara in Australia to customers in China and around the world.

Fortescue has set a target of eliminating scope 1 and 2 emissions from its Australian iron ore operations by 2030 and net-zero scope 3 emissions by 2040.

Fortescue has been advocating for the early adoption of zero-emission fuels, such as green ammonia, and bypassing transitional fuels like biofuels and LNG.

“Our landmark agreement with Bocimar sends a clear signal to the market – now is the time for shipowners to invest in green ammonia-powered ships. The days of ships operating on dirty bunker fuel, which is responsible for 3% of global carbon emissions, are numbered. We will continue to work with like-minded companies like Bocimar to transition our fleet to low and zero-emission vessels and help accelerate the widespread adoption of green ammonia as a marine fuel,” said Dino Otranto, CEO of Fortescue Metals.

“Based on our common belief that green ammonia is the fuel of the future, we were able to conclude this important agreement on the road to zero-emission shipping. This is the beginning of an exciting journey to build more ammonia-powered ships that will stimulate more green ammonia production projects. We need to decarbonise today to navigate tomorrow,” added Alexander Saverys, CEO of CMB.TECH.

This comes less than a month after Japan’s Mitsui OSK Lines and CMB.TECH partnered up to jointly own and charter nine newbuildings that can run on ammonia fuel.

The Tokyo-based firm said the deal covers three ammonia dual-fuel capesize bulkers and six chemical tankers, two of which will be ammonia dual-fuel, while the remaining four will be ammonia-ready. The capes are touted as the world’s first such vessels.