Mining giant BHP has struck charter deals with COSCO Shipping Bulk Co., Ltd., a subsidiary of COSCO shipping Group for two ammonia dual-fuelled newcastlemax bulk carriers.
The five-year time charter agreements will see the two 210,000 dwt vessels primarily transport iron ore from Western Australia to Northeast Asia.
The newcastlemaxes, expected to be delivered from 2028, will use ammonia as a marine fuel.
BHP said that when operated on lower or low-to-zero greenhouse gas emissions ammonia, the vessels could reduce emissions by at least 50% and up to 95% per voyage compared with conventional fuels.
Ammonia is among several alternative fuels that shippers are exploring to cut carbon emissions, though adoption will take time to scale up.
BHP selected COSCO Shipping following a rigorous expression of interest process, which evaluated safety, technical and commercial considerations.
The two companies have an established relationship and will work together with regulators to ensure the safe delivery and operation of the ships.
BHP said the deal supports its commitment under the First Movers Coalition to ship 10% of its total products, with its time charter vessels, using zero greenhouse gas emissions fuels by 2030.
The company is working with the maritime industry to develop an ammonia bunkering plan – the process of fuelling ships with ammonia – for the two vessels when they are delivered from 2028.
“Sourcing lower and low to zero GHG emissions ammonia is subject to an ongoing tender process,” it said.
BHP vice president maritime and supply chain excellence, Emma Roberts, noted: “We believe this investment will help to build momentum in the technology, strengthen the demand for ammonia as a marine fuel, and support the reduction of greenhouse emissions in the maritime value chain.
“As one of the world’s largest dry bulk charterers, BHP sees this as an opportunity to help establish a pathway for ammonia to be a marine fuel for a globally significant industry where emissions can be difficult to abate.
“Our tender process for the design and charter of ammonia dual-fuelled bulk carriers has brought together shipowners, fuel suppliers, engine-makers, and regulatory bodies from around the world.”
COSCO Shipping vice president, Ji Lin, said: “Our partnership with BHP has developed for many years. It’s been shaped by openness, reliability, and a joint pursuit of innovation.”
Ji Lin added: “Ammonia is one of the most promising marine fuels with zero-carbon potential. These vessels will stand at the forefront of technological and environmental advancement—not just for COSCO Shipping and BHP, but for the broader dry bulk sector. They represent a firm commitment to supporting the global climate and Chinese dual-carbon goal.”
