Fortescue and CMB.TECH sign chartel deal for ammonia-capable vessels

Fortescue says its latest charter deal with CMB.TECH will help drive demand for ammonia-fuelled shipping and support the scale-up of low-emission technologies.

IMAGE: Ammonia-capable tugboat, Green Pioneer. Fortescue

The Australian mining company has agreed to charter 12 bulk carriers, each with a capacity of 210,000 dwt, from Bocimar, the dry bulk division of Belgian shipping company CMB.TECH.

Three of these vessels will be ammonia-capable and are expected to be delivered by the end of this year.

The remaining nine vessels will be ammonia-ready and can be retrofitted for ammonia propulsion in the future. CMB.TECH has not specified the level of ammonia readiness or the delivery timelines for these vessels.

“Fortescue’s Green Pioneer demonstration vessel has already shown that ammonia can be used safely and effectively in marine operations. The next challenge is scaling the use of green ammonia,” Fortescue’s director of integrated operations, Katie Charuga, said.

“By investing in ammonia-capable vessels and working with partners who share our ambition, we are helping create demand for green ammonia and supporting the technologies needed to reduce emissions from global shipping,” Charuga added.

The agreement "sends a powerful signal to the market, particularly at a time when there is doubt about the decarbonisation of shipping: our sector can decarbonise at scale," CMB.TECH chief executive Alexander Saverys said.

"It just takes like-minded, determined partners who walk the talk," he added.

By Konica Bhatt

Please get in touch with comments or additional info to news@engine.online