July 2, 2025
BHP signed contracts with COSCO Shipping Bulk Co., Ltd. on 30 June for the charter of two ammonia dual-fuelled Newcastlemax bulk carriers.
As announced, the new vessels to be built under this arrangement will be two of only a handful of vessels in the world capable of using ammonia as a marine fuel and are expected to be delivered from 2028, to primarily transport iron ore from Western Australia to Northeast Asia.
The five-year time charter contracts are expected to contribute towards a reduction in the GHG emissions intensity of BHP chartered shipping. As stated, this move represents an important step toward lowering GHG emissions in the iron ore seaborne market.
We believe 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.
…said Emma Roberts, Vice President Maritime and Supply Chain Excellence, BHP.
Furthermore, these contracts will also contribute to BHP’s commitment as part of the First Movers Coalition, that by 2030, 10 per cent of BHP’s total products shipped to its customers using the company’s time charter vessels will be shipped using zero GHG emissions fuels.
When run on lower or low to zero greenhouse gas (GHG) emissions ammonia, these vessels aim to be capable of reducing GHG emissions by at least 50 per cent and up to 95 per cent on a per voyage basis compared to a conventionally fuelled voyage.
Ammonia is one of the most promising marine fuels with zero-carbon potential. These vessels will stand at the forefront of technological and environmental advancement—not just for COSCO Shipping and BHP, but for the broader dry bulk sector. They represent a firm commitment to supporting the global climate and Chinese dual-carbon goal.
…said Ji Lin, Shipping Vice President, COSCO.
