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In a strategic move aimed at slashing shipping emissions, Australia’s BHP Group unveils plans to welcome its inaugural ammonia-fueled bulk carrier by 2026, as disclosed by a senior executive.

In a strategic move aimed at slashing shipping emissions, Australia’s BHP Group unveils plans to welcome its inaugural ammonia-fueled bulk carrier by 2026, as disclosed by a senior executive.

Rashpal Singh Bhatti, BHP’s Vice President of Maritime and Supply Chain Excellence, revealed that the global mining powerhouse has identified eight potential partners for the construction, operation, and fuel supply of at least one such vessel. However, the final tally of vessels to be commissioned remains undecided, pending evaluations encompassing costs, technical considerations, and safety protocols.

Ammonia emerges as a prominent contender among alternative fuels being explored by shippers to mitigate carbon emissions, owing to its carbon-neutral combustion properties. Nevertheless, widespread adoption of ammonia faces hurdles, including the establishment of safety standards and requisite infrastructure for handling the volatile substance.

Anticipated delivery of the world’s maiden ammonia-powered ship engines by late 2024 to early 2025, as indicated by leading engine manufacturers MAN Energy and Wartsila, signals a pivotal milestone in the industry’s transition.

Bhatti outlined potential refueling hubs for the proposed vessels, citing ports in Australia, Japan, and China as prime candidates. He underscored Australia’s burgeoning role in the hydrogen and ammonia sectors, citing notable investments by companies like Yara, alongside substantial ventures by Mitsui, Sumitomo, and JERA in Japan, with China poised to join the fray with its considerable investment potential.

Additionally, BHP intends to integrate bio-blended fuels into its bunkering operations to comply with Europe’s stringent shipping emissions standards, following extensive trials exceeding 30 in number. With the European Union’s extension of its emissions trading system to encompass maritime transport to and from Europe, shippers are compelled to explore bio-blended fuels, albeit at a premium over conventional marine fuel. Bhatti emphasized that such additional costs would be absorbed and passed on to customers, reflecting their keen interest in sustainability initiatives.

Furthermore, BHP continues its adoption of liquefied natural gas (LNG) to power five of its vessels, underscoring a multifaceted approach toward emissions reduction in its maritime operations.

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