Australian miner BHP and China's largest shipping company Cosco have signed a deal to charter two ammonia dual-fuelled Newcastlemax bulk carriers, expected to be delivered in 2028, BHP announced today.
The vessels will be used as part of BHP's 255mn-265.5mn t/yr iron ore trade on shipments between Western Australia (WA) and northeast Asia, the miner said on 2 July. Ammonia-fuelled transport will cut greenhouse gas (GHG) emissions by 50-95pc per voyage compared with traditional bunker oil, BHP said.
BHP will continue to work on an ammonia bunkering plan in WA ahead of delivery, it said.
Several companies are eyeing blue and green hydrogen opportunities in the Pilbara iron ore mining region to meet expected maritime demand.
Cosco in January ordered eight Newcastlemax bulk carriers with methanol- and ammonia-ready class notation, allowing for bunkering using either fuel once an engine is selected.
The Pilbara region's proximity to offshore gas fields and local port authority Pilbara Ports' status as the world's largest bulk operator has led firms including blue ammonia developer NH3 Clean Energy to plan bunkering facilities in WA.
Norwegian firm Yara, which operates the 800,000 t/yr Pilbara ammonia plant, is exploring carbon capture and storage deals to cut its GHG emissions, while jointly developing a 10MW, 640 t/yr green hydrogen facility at the site due to come on line in late 2025.
Danish investment fund CIP's Murchison Green Hydrogen project was awarded A$814mn ($535mn) in federal government production credits in March for a proposed green ammonia export facility expected to commence operations in WA's Mid West region in 2032.
Ammonia bunkering on the WA-China iron ore corridor could meet up to 5pc of total shipments annually by 2030, but this would require 23 vessels operating around 70 Newcastlemax voyages by 2028, according to a 2023 Global Maritime Forum feasibility study.
Fellow member of the "big four" iron ore producers in Pilbara Australian miner Fortescue signed an initial agreement with Cosco in 2024 for green ammonia-powered vessels. It signed a chartering agreement with shipowner Bocimar in April 2025 for an ammonia-fuelled carrier to be delivered by late 2026.
