Fortescue to Operate Ammonia-Fueled Ore Carrier from CMB.TECH
Australian mining giant Fortescue and the Saverys family’s CMB.TECH signed a charter agreement which the companies are calling a landmark in the efforts to accelerate the deployment of ammonia-fueled vessels and the decarbonization of large, long-distance vessels. Fortescue will deploy one of the fleet of 210,000 dwt ammonia-fueled bulkers currently being built by CMB.TECH.
Bocimar, the bulker operator under the CMB.TECH umbrella reported in 2023 that it was working with WinGD to co-develop large ammonia-fuelled engines. The companies said they were aiming to install the ammonia dual-fuel X72DF engine on a series of 10 bulk carriers to be built at a Chinese shipyard in 2025 and 2026. By the end of 2023, they had progressed in announcing an agreement with CSSC Qingdao Beihai Shipbuilding (QBS) to build the vessels and engine builder CSSC Engine Co (CSE) to construct China’s first ammonia dual-fuel engines.
The project was based on WinGD’s X92B engine, which they said would be an ideal starting point for developing large-bore ammonia-fueled engines. The design was for a 72-bore ammonia engine operating using high-pressure fuel injection with a small portion of pilot fuel.
“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 three percent of global carbon emissions, are numbered,” said Dino Otranto, CEO of Fortescue Metals. “We will continue to work with like-minded companies like Bocimar to transition our fleet to low and zero-emissions vessels and help accelerate the widespread adoption of green ammonia as a marine fuel.”
The vessel is expected to be delivered by the end of 2026. Will be a dual-fuel Newcastle bulker. It will be employed to transport iron ore from the Pilbara region of Australia to customers in China and around the world.
Alander Saverys who is a strong advocate for decarbonization and at the forefront for ammonia and hydrogen-fueled vessels called the deal the “beginning of an exciting journey to build more ammonia-powered ships.” He believes that it will “stimulate more green ammonia production projects.”
Fortescue launched the first ammonia dual-fuel vessel last year with a converted offshore support vessel which also conducted the first ammonia bunkering operation in Singapore. The vessel went through extensive testing as part of a certification progress in Singapore. The vessel sailed to London in early March to call attention to ammonia ahead of the recent IMO meetings and according to the company will soon embark on a tour of global ports.
The agreement with Fortescue follows a deal between CMB.TECH and Mitsui O.S.K. Lines announced in March that the Japanese shipping company would jointly own three of the 210,000 dwt bulk carriers. It will take the three vessels on a long-term charter for operations and also plans to build six chemical tankers. Two of the vessels will be ammonia-fitted on delivery and the other four will be built ammonia-ready with delivery between 2028 and 2029.