Australian mining company Fortescue Metals Group has announced plans to convert its eight 260,000 dwt bulk carriers to run on green ammonia as part of its targets to reduce its environmental footprint.
The Perth-based group has set out to achieve net zero Scope 3 emissions by 2040, addressing emissions across its entire global value chain, including the decarbonisation of its fleet and engaging with shipping partners to reduce, and aiming to eliminate, emissions from shipping.
The plan also includes supporting the adoption of green ammonia for future newbuildings as well as pursuing opportunities for emissions reduction and elimination in crude steel manufacturing, which accounts for 98% of the company’s Scope 3 emissions.
“Fortescue has commenced its transition from a pure play iron ore producer to a green renewables and resources company,” said Elizabeth Gaines, Fortescue’s CEO.
Through its new division called Fortescue Future Industries (FFI), the miner is planning to produce 15m tonnes of green hydrogen annually by 2030 using renewable energy. Green hydrogen and ammonia supplied by FFI would be used in the production of so-called green iron and as a renewable green shipping fuel.
The company is currently working to develop a new ship that is more efficient and is powered by green ammonia. To date, it has commenced laboratory-scale testing of marine engines using ammonia and finalised the design for the next generation ore carrier, with approval in principle received from a classification society.