Fortescue ammonia bulk carrier due in Pilbara by year-end

Fortescue (FMG) signed a deal with CMB-TECH to bring its first dual-fuelled ammonia bulk carrier to the Pilbara by the end of the year. The company revealed the agreement Monday.

The vessel will haul iron ore from the miner’s Western Australia operations. It is a step in Fortescue’s push to cut emissions from its shipping fleet, which accounts for a meaningful share of its carbon footprint. The carrier can run on green ammonia produced from renewable hydrogen, though the fuel supply chain remains in early development.

Iron ore miners face mounting pressure from customers and regulators to decarbonise. Fortescue has set a net-zero operational emissions target by 2030. That deadline forces rapid changes in how it moves ore. Rivals Rio Tinto and BHP have focused on biofuels and battery-electric trucks for mine sites. Fortescue has bet heavily on green hydrogen and ammonia instead.

CMB-TECH, a Belgian shipping group, will supply the vessel. The two companies already work together on a hydrogen-powered tugboat. The bulk carrier’s design lets it switch between ammonia and conventional marine fuel, offering flexibility while ammonia bunkering infrastructure develops.

Specific terms – ship size, cost, charter length – were not disclosed. A first vessel by end-2025 gives Fortescue a test case before scaling to a full fleet. The miner has said it wants to replace or retrofit its entire iron ore shipping fleet, roughly 20-25 vessels, with green alternatives.

The Pilbara is the world’s largest iron ore export hub. Any shift in shipping technology there will ripple through global seaborne iron ore trade costs and emissions intensity over the next decade.