BHP is plotting its first order of an ammonia-fuelled bulker.
The Australian mining giant’s vice president of maritime and supply chain excellence, Rashpal Singh Bhatti, told Reuters that eight companies have been shortlisted for the business, including shipyards, operators and fuel suppliers.
Delivery of at least one vessel is planned for 2026 as part of its decarbonisation plans.
The total number of ships to be ordered has not yet been decided, Bhatti said.
The group is also assessing costs, as well as technical and safety submissions.
Anticipated delivery
The first ammonia engines are expected to be delivered late this year or early in 2025, according to manufacturers Wartsila and MAN Energy Solutions.
BHP wants to refuel any newbuildings with ammonia in Australia, Japan and China, Bhatti said.
Australia will be a very strong hydrogen or ammonia player, he said, pointing to investments there by Norwegian producer Yara International.
Mitsui & Co, Sumitomo and JERA have invested “very heavily” in Japan, and when China decides to invest, “the scale is going to be massive”.
TradeWinds reported last year that BHP and rival miner Rio Tinto were being linked to charters for up to six new ammonia dual-fuel newcastlemax bulkers being plotted by Idan Ofer’s Eastern Pacific Shipping.
The group owns 20 tugs but usually prefers to charter in cargo ships.
BHP is also aiming to use biofuel to meet Europe’s emissions rules and carbon levies, Bhatti said.
“These costs are absolutely shared and passed on to our customers because our customer base is very keen,” he added.
