BHP Group intends to receive its first ammonia-powered bulk carrier in 2026. The aim is to reduce shipping emissions as part of their sustainability initiative, revealed a top executive.
Rashpal Singh Bhatti, Vice President of Maritime and Supply Chain Excellence at BHP, shared that eight companies have been shortlisted to construct, operate and supply fuel for at least one such vessel. The decision about the total number of orders is yet to be taken, taking into account the costs, technical aspects and safety requirements.
Ammonia, which releases no carbon when burnt, is being weighed as a viable alternative fuel to curb carbon emissions. However, the adoption will take time as safety and infrastructure standards for this toxic fuel are still being worked on. The earliest we can expect to see ammonia-fueled ship engines in operation is between late 2024 and early 2025, per statements by top engine manufacturers MAN Energy and Wartsila.
The planned ships will likely refuel ammonia at ports in Australia, Japan, and China, added Bhatti. He also highlighted Australia’s potential to become a key player in the hydrogen or ammonia sector, with heavy investments from the Norwegian chemical maker, Yara.
He pointed out substantial investments in ammonia technologies in Japan by companies like Mitsui, Sumitomo, JERA, and in China, which aims to scale up massively.
Apart from ammonia, BHP is looking to use bio-blended fuels regularly to meet Europe’s shipping emission requirements after conducting over 30 trials. This move is in line with the European Union’s expansion of its emissions trading scheme to cover shipping on a Europe-wide basis.
Bhatti confirmed that the costs associated with using these premium-priced fuels as compared to conventional marine fuel will be passed on to their customers who are keen to support this initiative.
Additionally, the mining giant uses liquefied natural gas to fuel five of its ships as part of its multi-pronged approach to sustainable shipping.
