Fortescue Charters Up to 12 Ammonia-Capable Bulkers from CMB.TECH

Australian mining company Fortescue has signed an agreement with Belgian shipping and cleantech group CMB.TECH to charter up to 12 ammonia-capable bulk carriers, stepping up efforts to decarbonize maritime transport and support the development of green ammonia as a marine fuel.

Under the agreement, Fortescue will charter 12 Newcastlemax dry bulk vessels, each with a carrying capacity of 210,000 deadweight tonnes, from Bocimar, the dry bulk shipping arm of CMB.TECH.

Up to three of the vessels will be delivered with dual-fuel ammonia engines and are expected to enter service by the end of 2026, while the remaining nine vessels will be built ammonia-ready and can be converted to run on ammonia in the future.

The companies said that if the fleet is fueled with green ammonia, it could reduce carbon dioxide emissions by around 250,000 tonnes per year compared with vessels running on conventional marine fuels.

The agreement marks another step in Fortescue's broader strategy to develop demand for green hydrogen and green ammonia, which the company sees as key fuels for decarbonizing hard-to-abate sectors, including shipping.

"Green ammonia is one of the clearest pathways to reducing carbon dioxide emissions from shipping, and these vessels represent a practical step towards that future,” said Katie Charuga, Fortescue Director Integrated Operations.

Fortescue has already tested ammonia as a marine fuel through its Green Pioneer demonstration vessel, which became one of the first ocean-going vessels to operate using ammonia in dual-fuel mode.

For CMB.TECH, the agreement represents another milestone in its efforts to accelerate the adoption of alternative marine fuels and commercialize ammonia-powered shipping.

"This agreement marks an important step in showcasing ammonia as a viable marine fuel and advancing the transition to zero-emission shipping," added Alexander Saverys, CMB.TECH Chief Executive.

The shipping industry is under increasing pressure to reduce greenhouse gas emissions, with the International Maritime Organization targeting net-zero emissions from international shipping by around 2050.  

Green ammonia, produced using renewable electricity, is widely seen as one of the leading candidates to replace conventional bunker fuels because it contains no carbon and can be used in internal combustion engines with relatively limited modifications.

The charter agreement also sends a signal to shipowners, fuel suppliers and ports that demand for ammonia-fueled vessels is beginning to emerge at commercial scale, potentially helping accelerate investment in the infrastructure needed to support the fuel's wider adoption.