BHP signs ammonia dual-fuel bulk carrier deal with COSCO Shipping

The two vessels, to be delivered from 2028, will be among only a limited number of ships globally capable of operating on ammonia—a marine fuel with the potential for significantly lower greenhouse gas (GHG) emissions. The ships will primarily transport iron ore from Western Australia to Northeast Asia.

When powered by lower or low to zero GHG emissions ammonia, the newbuilds are expected to cut GHG emissions by at least 50 per cent and up to 95 per cent per voyage compared with conventionally fuelled vessels. The five-year time charter contracts are expected to contribute to a reduction in the GHG emissions intensity of BHP-chartered shipping operations.

The agreement supports BHP’s commitment under the First Movers Coalition, which aims for 10 per cent of the company’s product volumes to be shipped using zero GHG emissions fuels on its time-chartered vessels by 2030. It also aligns with broader maritime industry efforts to scale the use and production of alternative fuels.

BHP selected COSCO Shipping following a comprehensive expression of interest process, which evaluated safety, technical performance, and commercial viability. The two companies, which have a longstanding partnership, will collaborate with relevant regulatory authorities to ensure the vessels are delivered and operated in a safe and compliant manner.

As part of its preparations, BHP is working with industry stakeholders to develop ammonia bunkering infrastructure and procedures to support the vessels from delivery in 2028. The sourcing of suitable ammonia fuel—emphasising low or zero GHG emissions content—is currently the subject of an ongoing tender process.

The initiative builds on BHP’s broader low-emissions shipping strategy, which includes five LNG dual-fuelled vessels already in service and the implementation of biodiesel in its maritime operations.

BHP vice president maritime and supply chain excellence, Emma Roberts, described the announcement as a landmark moment for both the company and the wider shipping industry. “Together we are contributing to the industry’s ambition towards abatement of maritime greenhouse gas emissions through these first generation ammonia dual-fuelled vessels,” she said.

Roberts emphasised the importance of the project in supporting technological development, market demand for ammonia, and broader emissions reductions across the maritime value chain. “As one of the world’s largest dry bulk charterers, BHP sees this as an opportunity to help establish a pathway for ammonia to be a marine fuel for a globally significant industry where emissions can be difficult to abate,” she said.

COSCO Shipping vice president, Ji Lin, highlighted the strength of the companies’ longstanding relationship and the significance of the project for the Australia–China Green Shipping Corridor. “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,” he said.

He added that ammonia is one of the most promising marine fuels in terms of zero-carbon potential and reaffirmed COSCO Shipping’s commitment to innovation and sustainability in global logistics.