Fortescue Metals Group (FMG) is to retrofit its fleet of ore carriers to use green ammonia as fuel as part of its effort to achieve net-zero Scope 3 emissions by 2040.
The Australian iron ore miner said it will also "engage with shipping partners to reduce, and aiming to eliminate, emissions from shipping" as well as support the adoption of green ammonia in new vessel construction.
FMG has eight Fortescue class ore carriers that were delivered from China’s Yangzijiang Shipyard and Guangzhou Shipyard International between 2017 and 2018.
The eight ships provide about 12% of Fortescue’s total shipping requirements.
FMG is working on developing its own supply of green ammonia via subsidiary Fortescue Future Industries (FFI) which is building large-scale renewable energy and green hydrogen and ammonia production capacity in Tasmania.
"FFI is targeting the production of 15m tonnes of green hydrogen annually by 2030, which will underpin opportunities to work with customers and shipping partners on emissions reduction and elimination projects," FMG said.
Cleaner ores
In addition to the long-term goal to achieve net-zero Scope 3 emissions by 2040, FMG also aims to reduce emissions intensity levels from the shipping of Fortescue’s ores by 50% by 2030 compared to levels at the end of the last financial year.
"Fortescue has commenced its transition from a pure-play iron-ore producer to a green renewables and resources company, underpinned by the world’s first major carbon emission heavy industry operation to set a target to achieve carbon neutrality by 2030. This Scope 3 target is consistent with this transition and complements our targets for Scope 1 and 2 emissions reductions," FMG chief executive Elizabeth Gaines said.
"Collaboration is integral to driving the rapid transition to green energy, and we remain committed to actively engaging with our customers, suppliers and other key industry participants to facilitate the reduction of emissions.
"This includes the development of technologies and the supply of green hydrogen and ammonia through FFI, which will provide significant opportunities for the steel, cement and land and sea transport industries to decarbonise," she said.
TradeWinds reported in March 2021 that FMG had ditched a tender to charter in 10 LNG-fuelled 209,000-dwt bulkers and was planning to skip straight to carbon-free green ammonia-powered vessels.
