RIO TINTO INKS DEAL WITH EPS FOR FIRST DUAL-FUEL NEWCASTLEMAXES

According to an EPS statement published on its website, the deal includes an option for a further three 210,000dwt Newcastlemax vessels. Chinese shipyard New Times Shipbuilding will build the vessels, which are scheduled for delivery starting from the second half of 2023.

The duration of the charter and the cargo was not divulged in the EPS press release. However, The Motorship expects that the charter is likely to cover the carriage of iron ore between Western Australia and China, given the capacity of the vessels and the existence of a ship-to-ship LNG bunkering license at Rio Tinto’s main iron ore port in the Pilbara.

The deal represents the first long-term charter for an LNG-fuelled bulk carrier by Rio Tinto. The order is significant, both because of Rio Tinto’s leading position in the seaborne iron ore market, but also as it confirms a recent acceleration in interest in LNG-fuelled propulsion from the bulk sector overall. The Motorship notes that BHP and Anglo American have recently agreed long-term charters for the carriage of iron ore by dual-fuel bulker.

Rio Tinto’s Chief Financial and Operating Officer, Commercial, Ashley Howard expressed satisfaction at introducing LNG dual-fuel shipping into its fleet, citing Rio Tinto’s ambition to meet emissions reduction goals.

EPS CEO Cyril Ducau commented that “This partnership between EPS and Rio Tinto is another important step forward for industry-wide decarbonisation. We need like-minded companies to come together and use transitional fuels, like LNG, to get there. I am inspired by this partnership because it fulfils our sustainability ambitions and sends a clear signal that greener shipping is possible today.”