Fortescue and CMB.TECH ink deal for dual-fuel ammonia-powered ore carrier

The agreement will see Fortescue charter one of CMB.TECH’s 210,000 dwt ammonia-fuelled Newcastlemax bulk carriers, currently under construction, marking a significant step forward in the deployment of large ammonia-powered vessels.

The vessel, expected to be delivered by the end of 2026, will be dual-fuelled and employed in transporting iron ore from the Pilbara region of Western Australia to customers in China and across global markets. The agreement reflects Fortescue’s ambition to lead in the decarbonisation of maritime freight and supports its broader strategy to replace conventional bunker fuels with green ammonia.

Bocimar, the dry bulk division of CMB.TECH, revealed in 2023 that it was co-developing large ammonia-fuelled engines in collaboration with engine designer WinGD. The partnership is focused on WinGD’s ammonia dual-fuel X72DF engine, intended for installation aboard ten bulk carriers to be constructed at a Chinese shipyard between 2025 and 2026. That same year, CMB.TECH finalised agreements with CSSC Qingdao Beihai Shipbuilding for the vessel construction, and CSSC Engine Co. (CSE) to build China’s first ammonia dual-fuel engines.

Based on WinGD’s X92B platform, the new engine design features a 72-bore configuration with high-pressure fuel injection and a limited quantity of pilot fuel, offering a viable path to scale ammonia propulsion for deepsea shipping.

Dino Otranto, CEO of Fortescue Metals, emphasised the strategic importance of the charter. “Our landmark agreement with Bocimar sends a clear signal to the market – now is the time for shipowners to invest in green ammonia-powered ships. The days of ships operating on dirty bunker fuel, which is responsible for three percent of global carbon emissions, are numbered,” he stated. “We will continue to work with like-minded companies like Bocimar to transition our fleet to low and zero-emissions vessels and help accelerate the widespread adoption of green ammonia as a marine fuel.”

Alander Saverys, a vocal proponent of decarbonisation and one of the leading advocates for alternative fuels such as ammonia and hydrogen, described the collaboration as “the beginning of an exciting journey to build more ammonia-powered ships.” He added that he expects the agreement to encourage further investment in green ammonia production projects.

This latest announcement builds on Fortescue’s pioneering work in ammonia propulsion. Last year, the company launched its first ammonia dual-fuel vessel, a converted offshore support ship, which also carried out Singapore’s first ammonia bunkering operation. Following a comprehensive certification process, the vessel sailed to London in March to raise awareness of ammonia as a marine fuel in the lead-up to recent IMO discussions. It is now set to begin a global tour to showcase the technology.