Fortescue's First "Green" Bulker Bunkers Ammonia at Port Hedland
A Capesize ore carrier has fueled up with green ammonia at Port Hedland, Australia, in a first for the Australian market and for mining giant Fortescue's export operations.
The Fortescue-chartered Mineral Europa is a 200,000 dwt bulker operated by Belgian owner CMB.Tech. She is deployed on the core trade lane from Port Hedland to China - the destination for two-thirds of the global iron ore trade.
The green ammonia used at Port Hedland has no carbon emissions when used as a marine fuel, according to Fortescue. Port authority Pilbara Ports says that if multiplied across the Australia-centered iron ore fleet, switching to ammonia bunkering could cut emissions by as much as 4.5 million tonnes of CO2 annually.
Norwegian ammonia producer Yara has a massive conventional natural gas-to-ammonia plant in the Pilbara region, positioning it to add carbon-capture ammonia production in future.
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Another firm, WAH2 Clean Ammonia, has ambitions to set up a nearby blue ammonia plant (natural gas-derived ammonia, produced using a carbon capture and storage process). WAH2 has a feedstock deal with Chevron for its natural gas and a bunkering partnership with bunker-vessel operator Oceania Marine Energy.
Eventually, Fortescue would like to develop a value-added, low-carbon iron trade that involves a higher degree of processing before shipment. The idea is to use hydrogen - produced from renewable sources - to smelt iron ore into sponge iron ("green iron"), a deoxygenated iron raw material that could be used to produce high-grade steel in China.
