On June 30, BHP signed a lease agreement with COSCO Shipping Bulk, a subsidiary of COSCO Shipping Group, for two 210,000-ton ammonia dual-fuel Newcastlemax bulk carriers.
This collaboration marks a significant step for COSCO Shipping Group and BHP in addressing industry challenges, enhancing supply chain efficiency, and advancing green and low-carbon transformation. It also serves as a landmark initiative in building the “Australia-China Green Shipping Corridor.” Lin Ji, Deputy General Manager of COSCO Shipping Group, attended the signing ceremony as a witness. Emma Roberts, Vice President of Shipping at BHP, and Chen Xinchuan, Director and General Manager of COSCO Shipping Bulk, signed the agreement on behalf of their respective companies.
Under the contract, the two bulk carriers will be among the few commercial vessels globally capable of using ammonia fuel. Scheduled for delivery in 2028 with a five-year lease term, these ships will primarily transport iron ore from Western Australia to Northeast Asia. When powered by low-carbon or near-zero-emission ammonia fuel, they can reduce carbon emissions per voyage by 50% to 95% compared to conventional fossil fuel-powered vessels.
This time charter agreement will help lower the carbon intensity of BHP’s shipping operations and represents a major step forward in reducing greenhouse gas emissions in the iron ore shipping market, advancing the maritime industry toward a decarbonized future. Additionally, it will expand the production scale of alternative fuels and boost market demand for low-carbon or near-zero-emission marine fuels.
The agreement also supports BHP’s commitment as a member of the First Movers’ Coalition, which aims for 10% of its time-chartered fleet cargo to be transported using zero-emission fuels by 2030.
Following a rigorous request-for-proposal and evaluation process, BHP selected COSCO Shipping as its partner, with key considerations including safety, technical feasibility, and commercial viability. The two companies have a long-standing collaborative relationship and will work with major regulatory bodies to ensure the safe delivery and operation of the vessels.
BHP will continue collaborating with the maritime industry to facilitate the smooth operation of these ships post-delivery in 2028, while also advancing ammonia fuel bunkering plans and refining supply procedures.
A tender for procuring low-carbon or near-zero-emission ammonia fuel is currently underway.
The successful implementation of this project will serve as a major milestone in the global bulk shipping sector’s transition to zero carbon. It positions COSCO Shipping Group and BHP among the first companies to adopt ammonia dual-fuel vessels for maritime emission reduction, demonstrating their commitment to global climate action and China’s “dual carbon” goals.
This initiative is part of BHP’s broader strategy to create market demand and drive industry adoption of low-carbon or near-zero-emission fuels. Previous efforts include leasing five LNG dual-fuel bulk carriers and integrating clean fuels like biodiesel into commodity value chain operations.
Emma Roberts, Vice President of Shipping at BHP, stated: “We are honored to partner with COSCO Shipping Group to become one of the first companies using ammonia dual-fuel vessels to reduce maritime emissions and contribute to industry progress. As one of the world’s largest dry bulk charterers, BHP sees this as a pivotal opportunity to establish a pathway for ammonia fuel in shipping—a critical yet hard-to-abate sector. We believe this investment will accelerate technological advancements, boost demand for ammonia as a marine fuel, and support greenhouse gas reduction across the maritime value chain.”
“Our tender for designing, building, and leasing ammonia dual-fuel bulk carriers has brought together shipowners, fuel suppliers, engine manufacturers, and regulators worldwide, underscoring BHP’s commitment to collaborating with partners to reduce emissions across the value chain.”
Lin Ji, Vice President of COSCO Shipping Group, remarked: “COSCO Shipping and BHP have enjoyed years of collaboration. As leaders in global mineral resources and shipping, we share a commitment to mutual benefit, tackling industry challenges together, and driving supply chain efficiency and net-zero transformation. Today’s signing of these two 210,000-ton ammonia dual-fuel bulk carriers is not only a milestone in our partnership but also a landmark achievement for the Australia-China Green Shipping Corridor.”
“Ammonia is one of the most promising zero-carbon marine fuels. The launch of these vessels represents a significant milestone in the global bulk shipping sector’s journey toward zero carbon, showcasing both technological and environmental breakthroughs. It also reflects our dedication to supporting global climate action and China’s dual carbon goals. Moving forward, COSCO Shipping will continue working closely with BHP to promote the commercial application of net-zero technologies and build a more resilient and forward-looking zero-carbon supply chain, contributing to global sustainability.”
Prior to the signing ceremony, the two parties held discussions, reviewing their collaborative history and exploring topics such as green supply chain development. They also shared their vision for future cooperation. Both sides agreed that this ammonia-fueled vessel project exemplifies resource sharing, complementary strengths, and sincere collaboration, offering new opportunities for innovation and leadership in the global dry bulk shipping market.
Looking ahead, the two companies will continue working together to advance the commercial adoption of green and low-carbon technologies, fostering a more resilient and visionary supply chain to support global sustainability goals.
