Buckle up, maritime industry, because the future is sailing towards us faster than a superyacht on a calm sea. Fortescue, that Aussie mining behemoth, has just inked a deal with the Saverys family’s CMB.TECH that’s set to shake up the decarbonization game. They’re calling it a “landmark” agreement, and for good reason. It’s all about accelerating the deployment of ammonia-fueled vessels and giving those long-distance, heavy-lifting ships a green makeover.
Fortescue is jumping on board one of CMB.TECH’s fleet of 210,000 dwt ammonia-fueled bulkers, currently under construction. This isn’t just about one ship; it’s about sending a clear signal to the market. Dino Otranto, CEO of Fortescue Metals, didn’t mince words: “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.” He’s right. The days of ships guzzling dirty bunker fuel, responsible for a whopping three percent of global carbon emissions, are numbered.
But this isn’t just talk. Bocimar, the bulker operator under CMB.TECH’s umbrella, has been working with WinGD to co-develop large ammonia-fueled engines. They’re aiming to install the ammonia dual-fuel X72DF engine on a series of 10 bulk carriers, set to roll out of a Chinese shipyard in 2025 and 2026. And they’re not stopping there. By the end of 2023, they’d already inked a deal with CSSC Qingdao Beihai Shipbuilding (QBS) to build the vessels and CSSC Engine Co (CSE) to construct China’s first ammonia dual-fuel engines.
Now, let’s talk about the elephant in the room – or rather, the ship on the sea. This vessel, expected to be delivered by the end of 2026, will be a dual-fuel Newcastle bulker. It’s set to transport iron ore from the Pilbara region of Australia to customers in China and beyond. But here’s where it gets interesting. Alander Saverys, a strong advocate for decarbonization and a big player in the ammonia and hydrogen-fueled vessels game, called this deal the “beginning of an exciting journey to build more ammonia-powered ships.” He believes it’ll stimulate more green ammonia production projects. And who are we to argue?
Fortescue isn’t new to this game. They launched the first ammonia dual-fuel vessel last year, a converted offshore support vessel that even conducted the first ammonia bunkering operation in Singapore. The vessel’s been through extensive testing and even sailed to London in early March to drum up support for ammonia ahead of the recent IMO meetings. It’s set to embark on a global port tour soon, spreading the green fuel gospel.
But Fortescue isn’t the only one jumping on the ammonia bandwagon. CMB.TECH also inked a deal with Mitsui O.S.K. Lines in March. The Japanese shipping company will jointly own three of those 210,000 dwt bulk carriers, taking them on a long-term charter for operations. They’re also planning to build six chemical tankers, with two of the vessels ammonia-fitted on delivery and the other four built ammonia-ready, set to roll out between 2028 and 2029.
So, what does this all mean for the future of the maritime industry? It’s clear that ammonia is no longer just a pipe dream. It’s a viable, scalable solution for decarbonizing large, long-distance vessels. And with heavy hitters like Fortescue and Mitsui O.S.K. Lines backing it, we can expect to see more green ammonia-powered ships sailing our seas sooner rather than later. But this is just the beginning. The real challenge lies in scaling up green ammonia production to meet the demand. And that, my friends, is a whole other ball game. So, let’s keep our eyes on the horizon and our ears to the ground. The future of maritime decarbonization is unfolding before our eyes, and it’s looking greener by the day.
