Iron-ore major Fortescue has signed an agreement with Bocimar, part of Belgium’s CMB.TECH, to charter a new ammonia-powered vessel.

The 210 000 dry weight tonnage (dwt) Newcastlemax vessel is expected to be delivered by the end of 2025 and will transport Fortescue’s iron-ore exports from the Pilbara to customers in China and globally.

Equipped with a dual-fuel engine, the vessel will be capable of operating on ammonia that can be created using renewable energy.

While Fortescue has committed to eliminating Scope 1 and 2 emissions from its Australian operations by 2030, its Scope 3 target of net zero by 2040 remains a challenge, particularly in shipping and downstream steelmaking.

The miner has positioned itself as a global leader in zero-emissions advocacy, calling for the direct adoption of green ammonia as a long-term marine fuel and opposing transitional alternatives such as biofuels and liquefied natural gas.

Fortescue Metals CEO Dino Otranto said the partnership with Bocimar marked an important step in reducing emissions across its value chain.

“Our landmark agreement with Bocimar sends a clear signal to the market – now is the time for shipowners to invest in ammonia-powered ships,” said Otranto.

“The days of ships operating on dirty bunker fuel, which is responsible for three per cent of global carbon emissions, are numbered. We continue to implore shipping regulators to show the character and leadership that is necessary to ensure this happens sooner rather than later.

“Our agreement with Bocimar is just the beginning and is a critical step in addressing our Scope 3 emissions. Through the Fortescue Green Pioneer we have demonstrated that the technology to decarbonise shipping exists now.

“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.”

Fortescue’s Fortescue Green Pioneer – the world’s first class society approved dual-fuel ammonia-powered vessel – has been in London since early March and is set to begin a global port tour to raise awareness around zero-emission fuel solutions.

CMB.TECH CEO Alexander Saverys highlighted the long-standing relationship between the two companies and their aligned vision.

“Fortescue and Bocimar have been close partners for more than 20 years. We share the same values and are both passionate about decarbonising the maritime industry," said Saverys.

“Based on our common belief that green ammonia is the fuel of the future, we were able to conclude this important agreement on the road to zero emission shipping.

“This is the beginning of an exciting journey to build more ammonia-powered ships that will stimulate more green ammonia production projects. We need to decarbonise today to navigate tomorrow.”