World’s First Ammonia-Powered Bulk Fleet to Cut Shipping Emissions by 250,000 Tonnes Annually

2026-06-22 companies

Antwerp, Monday, 22 June 2026.
In a groundbreaking move, Fortescue and CMB.TECH will launch 12 ammonia-powered bulk carriers by 2026, slashing CO₂ emissions by 250,000 tonnes per year. This deal marks the first large-scale adoption of ammonia as a marine fuel, positioning both companies as leaders in zero-emissions shipping. The vessels, equipped with dual-fuel ammonia engines, could redefine global trade by proving green ammonia’s viability. With shipping responsible for 3% of global emissions, this partnership accelerates the industry’s shift toward sustainability and aligns with the IMO’s 2050 net-zero targets.

The Landmark Agreement: A Fleet of 12 Ammonia-Powered Bulk Carriers

On 22 June 2026, Australian mining giant Fortescue (ASX: FMG) and Belgian cleantech firm CMB.TECH (NYSE: CMBT, Euronext Brussels: CMBT, Euronext Oslo Børs: CMBT) finalized a landmark agreement to build and deploy 12 ammonia-powered bulk carriers, marking the first large-scale adoption of ammonia as a marine fuel in the shipping industry [1]. The vessels, chartered from CMB.TECH’s dry bulk division Bocimar, will consist of 12 Newcastlemax-class ships, each with a deadweight tonnage (dwt) of 210,000 tonnes [1]. Of these, up to three vessels will be delivered with dual-fuel ammonia engines by the end of 2026, while the remaining nine will be ammonia-ready, designed for future conversion [1][2]. This initiative is set to reduce CO₂ emissions by an estimated 250,000 tonnes annually if powered by green ammonia, a carbon-free fuel [1].

Ammonia as a Marine Fuel: A Game-Changer for Decarbonization

The global shipping industry is responsible for nearly 3% of the world’s greenhouse gas (GHG) emissions, a figure that has placed it under increasing regulatory and consumer pressure to decarbonize [GPT]. Ammonia (NH₃) has emerged as a leading candidate for zero-emission shipping due to its carbon-free combustion properties and existing infrastructure for production and transport [GPT]. Unlike traditional marine fuels such as heavy fuel oil (HFO) or liquefied natural gas (LNG), ammonia does not release CO₂ when burned, making it a critical solution for meeting the International Maritime Organization’s (IMO) 2050 net-zero targets [GPT][1]. The IMO’s strategy, adopted in 2023, aims to reduce the carbon intensity of international shipping by at least 40% by 2030 and achieve net-zero emissions by mid-century [3]. Fortescue and CMB.TECH’s agreement directly supports these goals by demonstrating the commercial viability of ammonia-powered vessels at scale [1].

Technological Innovation: Dual-Fuel Ammonia Engines

The vessels will be equipped with CMB.TECH’s proprietary dual-fuel ammonia engine technology, which allows them to operate on both ammonia and conventional marine fuels [1]. This dual-fuel capability is essential for ensuring operational flexibility, particularly in the early stages of ammonia adoption, when refueling infrastructure may still be limited [GPT]. The first three vessels, expected to enter service by the end of 2026, will be capable of running on ammonia from day one, while the remaining nine will be built to accommodate future ammonia engine retrofits [1][2]. The Newcastlemax-class design, optimized for iron ore transport, is particularly significant for Fortescue, which operates one of the world’s largest iron ore supply chains from Western Australia’s Pilbara region [2]. The Port of Port Hedland, a key export hub for Fortescue’s iron ore, is expected to be a primary operational base for the new fleet [2].

Industry Reactions: A Catalyst for Wider Adoption

Industry leaders have hailed the agreement as a watershed moment for zero-emission shipping. Katie Charuga, Fortescue’s Director of Integrated Operations, emphasized the urgency of action in the sector, stating: “The shipping industry doesn’t need more talk. It needs action. Green ammonia is one of the clearest pathways to reducing carbon dioxide emissions from shipping, and these vessels represent a practical step towards that future” [1]. Charuga further highlighted the deal’s role in creating demand for green ammonia, noting: “By investing in ammonia-capable vessels and working with partners who share our ambition, we are helping create demand for green ammonia and supporting the technologies needed to reduce emissions from global shipping” [1]. Alexander Saverys, CEO of CMB.TECH, echoed this sentiment, underscoring the long-standing partnership between Fortescue and Bocimar: “Fortescue and Bocimar have built a strong partnership over more than two decades, grounded in shared values and a clear commitment to decarbonise shipping. This agreement marks an important step in showcasing ammonia as a viable marine fuel and advancing the transition to zero-emission shipping” [1].

Regulatory and Market Implications: Accelerating the Energy Transition

The Fortescue-CMB.TECH deal arrives at a critical juncture for the shipping industry, as regulators and investors intensify pressure on companies to adopt sustainable practices. The European Union’s inclusion of shipping in its Emissions Trading System (ETS) from 2024 has already imposed financial penalties on carbon-intensive vessels, incentivizing the adoption of cleaner fuels [6]. Meanwhile, the IMO’s upcoming 2026 review of its GHG strategy is expected to introduce stricter measures, potentially including mandatory carbon intensity targets for newbuild vessels [3]. Analysts predict that the success of this fleet could accelerate the adoption of ammonia as a marine fuel, with knock-on effects for global energy markets [1]. Green ammonia production, which relies on renewable energy for hydrogen synthesis, is still in its early stages, but projects such as Fortescue’s planned 2-gigawatt electrolyzer in Queensland aim to scale up supply [7]. The demand generated by this fleet could spur further investment in ammonia production infrastructure, particularly in regions with abundant renewable energy resources, such as Australia, the Middle East, and North Africa [GPT].

Challenges and Future Outlook: Scaling Up Ammonia-Powered Shipping

Despite its promise, the widespread adoption of ammonia as a marine fuel faces several challenges. Safety concerns, including ammonia’s toxicity and corrosiveness, require robust handling and storage protocols [GPT]. Additionally, the current cost of green ammonia remains significantly higher than conventional marine fuels, though economies of scale and technological advancements are expected to narrow this gap [GPT]. The development of ammonia bunkering infrastructure at major ports will also be critical to supporting the fleet’s operations [1]. Fortescue and CMB.TECH’s agreement includes provisions for collaboration on fuel supply and infrastructure development, which could serve as a blueprint for future projects [1]. Looking ahead, the success of this fleet may influence other shipping companies to invest in ammonia-powered vessels, potentially reshaping global trade routes and energy markets. With the first vessels set to enter service by the end of 2026, the industry will be closely watching this initiative as a litmus test for ammonia’s viability as a zero-emission marine fuel [1][2].

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ammonia shipping zero-emissions maritime