The Belgian shipping company CMB.Tech is increasing its focus on the use of alternative fuels with a new ammonia ship.
The ship, which is being built at the Qingdao Beihai shipyard, is a Newcastlemax-class bulker. Delivery is scheduled for the end of 2026. The charterer is from Australia.
The agreement, which was signed jointly with the Australian companies Fortescue and the CMB subsidiary Bocimar, describes a 210,000 dwt vessel with a dual-fuel engine that can also use ammonia (NH3) as fuel. It is to be delivered at the end of next year and chartered out to Fortescue.
Next bulker for CMB from China
The ship is one of a series of bulkers being built for CMB in China. In future, it will be used to transport iron ore from the Pilbara region in Western Australia to China and other customers.
According to a statement, Fortescue has committed to eliminating Scope 1 and Scope 2 emissions from its Australian iron ore operations by 2030. The target of net zero Scope 3 emissions by 2040 reflects the challenge of eliminating emissions from the transportation of its products to customers and from steel production. The bulk shipping company relies on ammonia as an alternative fuel, while avoiding transitional solutions such as biofuels and LNG. The “Fortescue Green Pioneer”, the world’s first ammonia-powered dual-fuel vessel, has been in London since the beginning of March.
“Our groundbreaking agreement with Bocimar sends a clear signal to the market: now is the time for shipowners to invest in green ammonia-powered vessels. The days of ships running on dirty fuel, which is responsible for 3% of global CO2 emissions, are numbered,” said Dino Otranto, CEO of Fortescue Metals. “We continue to call on the shipping authorities to show the necessary character and leadership to ensure this happens sooner rather than later.”
The agreement with Bocimar is just the beginning of the efforts. It will continue to work with “like-minded companies” to convert the fleet to low-emission vessels and accelerate the widespread adoption of ammonia in the industry.
“Fortescue and Bocimar have been working closely together for over 20 years,” said CMB Managing Director Alexander Saverys. “We share the same values and are both passionate about the decarbonization of shipping. Based on our shared conviction that green ammonia is the fuel of the future, we have been able to conclude this important agreement on the road to zero-emission shipping. This is the start of an exciting journey to build more ammonia-powered ships, which will stimulate further green ammonia production projects. We need to decarbonize today to navigate tomorrow.”
