BHP Group, a global mining giant based in Australia, is set to receive its inaugural ammonia-fuelled bulk carrier by 2026 as part of its strategic efforts to reduce shipping emissions. Rashpal Singh Bhatti, the company’s Vice President of Maritime and Supply Chain Excellence, revealed that BHP has shortlisted eight companies for the construction, operation, and fuel supply of at least one ammonia-fuelled vessel. However, the total number of vessels to be ordered is yet to be determined, as BHP continues to evaluate various factors including costs, technical considerations, and safety submissions.
Ammonia has emerged as a promising alternative fuel for the shipping industry due to its carbon-neutral combustion properties. Despite its potential, the widespread adoption of ammonia is contingent on addressing safety concerns and establishing infrastructure standards for handling this toxic fuel.
The world’s first ammonia-fuelled ship engines are anticipated to be delivered between late 2024 and early 2025, as indicated by leading engine manufacturers MAN Energy and Wartsila. BHP’s proposed vessels are expected to refuel ammonia at ports in Australia, Japan, and China, reflecting the growing investments in ammonia production and infrastructure in these regions.
In addition to its focus on ammonia, BHP intends to regularly utilize bio-blended fuels for bunkering to comply with Europe’s shipping emissions regulations, following more than 30 trials. The European Union’s extension of its emissions trading system to cover shipping to and from Europe has prompted shippers to consider bio-blended fuels, despite their premium pricing compared to conventional marine fuel.
Bhatti emphasized that the additional costs associated with bio-blended fuels are shared and passed on to customers, reflecting strong customer interest in sustainable shipping practices. Furthermore, BHP is already leveraging liquefied natural gas (LNG) to fuel five of its ships as part of its broader commitment to reducing emissions from its shipping operations.
BHP’s proactive steps in embracing alternative fuels and sustainable shipping practices underscore its dedication to environmental stewardship and align with the global momentum towards decarbonizing the shipping industry.