BHP and COSCO ink charter deal for ammonia-fueled bulk carrier duo

July 3, 2025, by Ajsa Habibic

Australia-based mining company BHP has entered into a charter agreement with COSCO Shipping Bulk, a subsidiary of China’s COSCO Shipping, for two ammonia dual-fuel Newcastlemax bulk carriers.

Illustration; Archive. Courtesy of COSCO Shipping

According to BHP, the five-year contract includes two 210,000 dwt ammonia dual-fuel vessels that will primarily transport iron ore from Western Australia to Northeast Asia. The newbuilds are scheduled for delivery from 2028.

By utilizing lower or low to zero greenhouse gas (GHG) emissions ammonia, these vessels will be capable of reducing GHG emissions by at least 50% and up to 95% on a per voyage basis compared to a conventionally fueled voyage, the company said.

In addition, BHP is collaborating with the maritime industry to develop an ammonia bunkering plan for the two vessels and is running a tender process for sourcing lower and low to zero GHG emissions ammonia.

BHP Vice President Maritime and Supply Chain Excellence, Emma Roberts, stated that 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”.

COSCO Shipping Vice President, Ji Lin, added that the charter agreement with BHP and ammonia-fueled vessels represent “the real progress being made to the ‘Australia–China Green Shipping Corridor’”.

Through these contracts, as part of the First Movers Coalition, BHP aims to contribute to the commitment to to ship 10% of its total products using zero GHG emission fuels in its charter vessels by 2030.

In the meantime, the Australian company intends to ramp up efforts to establish demand and incentivize the industry to take up lower and low to zero GHG emissions fuels, building on its current activities, including the charter of five dual-fuel LNG vessels and the operationalization of biodiesel as a marine fuel in its commodity value chains.