Navigating tomorrow: Fortescue, CMB.TECH pen deal for dual-fuel ammonia-powered bulker

Australian green technology, energy, and metals company Fortescue and Belgian shipowner CMB.TECH have inked an agreement for the former to charter the latter’s new 210,000 dwt ammonia-powered dry bulk carrier.

As disclosed, Fortescue and Bocimar, part of CMB.TECH, penned a contract covering the charter of a dual-fuel Newcastlemax unit that is part of a series of ships being constructed at China’s Qingdao Beihai Shipbuilding, member of China State Shipbuilding Corporation (CSSC). The newbuild is slated for delivery in 2026.

According to the Antwerp-headquartered shipping player, once the bulker is handed over to Fortescue, it will transport iron ore from Australia’s Pilbara region to China, and beyond.

The agreement is said to be part of the companies’ ambition(s) to give speed to their own as well as the maritime industry’s broader decarbonization goals. Fortescue aims to eliminate Scope 1 and 2 emissions from its Australian iron ore operations by 2030 and meet its target of net zero Scope 3 emissions by 2040.

To this end, the company has placed emphasis on the early adoption of zero emission energy sources such as green ammonia—a fuel that has been hailed as a viable, long-term solution for maritime transportation—and the bypassing of transitional fuels like biofuels and liquefied natural gas (LNG).

Fortescue Metals CEO Dino Otranto highlighted the company’s endeavors, stating that the deal with Bocimar represented a “clear signal” for shipowners to invest in green ammonia-powered ships, as well as in other future fuels.

“The days of ships operating on dirty bunker fuel, which is responsible for 3 per cent of global carbon emissions, are numbered. We continue to implore shipping regulators to show the character and leadership that is necessary to ensure this happens sooner rather than later.”

As understood, the company’s Fortescue Green Pioneer, which completed the world’s first ammonia bunkering in March 2024 at the Port of Singapore, will soon depart from London—where it has been since early March—to “bring further attention to the need for a hastened transition to zero emission fuels” at each port of call.

Speaking about the deal with Fortescue, Alexander Saverys, CEO of CMB.TECH, also spotlighted: “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 decarbonize today to navigate tomorrow.“

The charter contract with Fortescue comes on the heels of a similar arrangement between CMB.TECH and Japanese shipping giant Mitsui O.S.K. Lines (MOL). Namely, at the end of March this year, the company shook hands with MOL and its subsidiary MOL Chemical Tankers (MOLCT) to jointly own and charter what was described as ‘the world’s first’ ammonia dual-fuel Newcastlemax bulkers and chemical tankers.

As MOL Group confirmed to Offshore Energy, a trio of 210,000 dwt dual-fuel ammonia-equipped Capesize bulkers, booked at Qingdao Beihai Shipbuilding, would be owned by CMB.TECH’s and MOL’s joint venture, while Mitsui O.S.K. Lines would charter them for 12 years. On the other hand, MOLCT would charter six 26,000 dwt chemical tankers, which China Merchants Jinling Shipyard (Yangzhou) Dingheng will build.

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• CSSC, CMB.TECH join forces on green-fueled ships, low-carbon technologies
• Construction begins on ‘world’s first’ ammonia dual-fuel bulk carrier