BHP and COSCO ink charter deal for ammonia-fueled bulk carrier duo

Australia-based mining company BHP has entered into a charter agreement with COSCO Shipping Bulk, a subsidiary of China’s COSCO Shipping, for two ammonia dual-fuel Newcastlemax bulk carriers.

According to BHP, the five-year contract includes two 210,000 dwt ammonia dual-fuel vessels that will primarily transport iron ore from Western Australia to Northeast Asia. The newbuilds are scheduled for delivery from 2028.

By utilizing lower or low to zero greenhouse gas (GHG) emissions ammonia, these vessels will be capable of reducing GHG emissions by at least 50% and up to 95% on a per voyage basis compared to a conventionally fueled voyage, the company said.

In addition, BHP is collaborating with the maritime industry to develop an ammonia bunkering plan for the two vessels and is running a tender process for sourcing lower and low to zero GHG emissions ammonia.

BHP Vice President Maritime and Supply Chain Excellence, Emma Roberts, stated that this investment “will help to build momentum in the technology, strengthen the demand for ammonia as a marine fuel, and support the reduction of greenhouse emissions in the maritime value chain”.