World’s first green ammonia-powered iron ore shipment leaves Western Australia

The world's first iron ore shipment powered by green ammonia has departed from Port Hedland in Western Australia, marking a significant milestone in the decarbonization of global shipping. The dry-bulk carrier, Mineral Europa, owned by CMB.TECH and chartered by Fortescue, has successfully completed its maiden voyage, both with an initial ship-to-ship green ammonia bunkering operation off the port of Zhoushan, China, and the loading of a commercial iron ore cargo for delivery to China.

This historic achievement is a result of substantial investments from key stakeholders, including the Pilbara Ports Authority, Fortescue, and CMB.TECH. The collaboration across the entire value chain, from mining and shipping to ports, fuel suppliers, and engine technology providers, demonstrates the potential of ammonia as a low-carbon fuel for maritime transport.

The switch to low-carbon ammonia for iron ore transport could cut emissions by an impressive 94%, reducing the annual CO2 equivalent from 9.9 million tonnes to less than 0.6 million tonnes. This achievement occurs significantly earlier than the 2028 deployment target set out in the corridor's 2023 feasibility study, highlighting the rapid progress in decarbonizing the Australia-East Asia iron ore trade route.

However, to scale up zero- or near-zero-emission shipping, the industry requires policy support to address the remaining cost gap between these fuels and conventional alternatives. While leading companies are increasingly investing in e-fuels like clean ammonia, broader adoption necessitates mechanisms that mitigate investment risks and facilitate commercial-scale implementation.

Jesse Fahnestock, director of decarbonisation at the Global Maritime Forum, emphasizes the importance of policy support, which could include measures to spur clean fuel demand, reduce fuel cost gaps, and ensure the development and availability of necessary fuel and port infrastructure.

Established in 2022, the Australia-East Asia iron ore green corridor initiative, supported by the Global Maritime Forum, brings together 14 industry members, including Pilbara Ports Authority and Fortescue. This pioneering voyage underscores the urgent need for supportive policies to accelerate the transition towards a more sustainable maritime shipping sector.