Fortescue Launches Ammonia Vessel Project to Advance Green Shipping

About Fortescue Limited

Fortescue Ltd (ASX: FMG), one of Australia’s largest iron ore exporters and a global leader in green energy transition, has announced a landmark partnership with a prominent maritime company to co-develop and trial an ammonia-powered vessel. The collaboration marks a bold step toward zero-emissions shipping and supports Fortescue’s wider ambition to become a global green energy pioneer.

The project will see the design, development, and testing of a large-scale vessel powered by green ammonia—an alternative marine fuel with the potential to significantly reduce carbon emissions in global freight and logistics operations. The initiative adds momentum to Fortescue’s strategy of integrating clean energy across all aspects of its value chain.

Partnership Overview and Project Scope

Under the partnership, Fortescue and its maritime collaborator will co-design and develop a vessel capable of operating on green ammonia as its primary fuel, replacing traditional marine diesel. The project is currently in the design and feasibility phase, with sea trials scheduled for 2025.

The vessel is expected to be retrofitted or newly built using ammonia-compatible propulsion systems and fuel storage technology, in line with International Maritime Organization (IMO) regulations and safety protocols. Once completed, it will serve as a demonstrator for commercial-scale, zero-emissions shipping.

While the maritime partner’s name has not been disclosed in initial announcements, Fortescue has confirmed that the collaboration brings together engineering, shipping, and clean fuel expertise to accelerate the delivery of a viable zero-emissions freight solution.

Strategic Alignment with Green Energy Vision

The ammonia-powered vessel is part of Fortescue’s broader plan to decarbonise its mining operations, logistics, and supply chains. The company has committed to eliminating Scope 1 and Scope 2 emissions by 2030—one of the most ambitious targets in the global mining sector.

Maritime shipping is a significant source of global emissions, accounting for approximately 3% of total greenhouse gases. By investing in zero-emissions shipping technology, Fortescue aims to reduce the carbon footprint associated with exporting iron ore from the Pilbara and transporting green hydrogen and ammonia to global markets.

The initiative aligns with Fortescue’s green hydrogen and green ammonia strategy, which includes development of large-scale production hubs in Australia and overseas. Ammonia is considered a critical vector for transporting hydrogen over long distances due to its high energy density and established infrastructure compatibility.

Technical and Environmental Considerations

Green ammonia, produced by combining green hydrogen (via electrolysis) and nitrogen (from the air), offers a carbon-free energy source when burned or used in fuel cells. It is increasingly viewed as a credible alternative to heavy fuel oil in marine transport due to its lower environmental impact and scalability.

However, technical challenges remain—particularly regarding fuel storage, energy efficiency, NOx emissions management, and safety in confined environments. The Fortescue partnership will address these through engineering innovation, rigorous trials, and close regulatory engagement.

By pursuing early adoption and operational testing, Fortescue seeks to demonstrate commercial viability, support standards development, and de-risk investment in future ammonia-powered fleets across the mining and shipping industries.

Broader Implications for Fortescue’s Business Model

The project marks another step in Fortescue’s evolution from a pure-play iron ore miner to a vertically integrated green energy and infrastructure company. The company has committed over US$6 billion to decarbonisation and energy transition projects, including Fortescue Energy’s green hydrogen and renewable infrastructure portfolio.

The ammonia vessel complements this diversification strategy by addressing downstream emissions and building a clean logistics capability that could support both its resource exports and future energy deliveries.

In addition to environmental leadership, the move also provides a first-mover advantage in the transition to low-emissions shipping, potentially unlocking regulatory benefits, investor interest, and commercial partnerships aligned with sustainability goals.

Industry Context and Competitive Landscape

The shipping industry is under increasing pressure to decarbonise, with regulators and customers demanding cleaner freight solutions. Initiatives such as the IMO’s decarbonisation targets and the European Union’s inclusion of maritime transport in emissions trading are accelerating the adoption of alternative fuels.

Global mining and energy companies are exploring various pathways, including methanol, LNG, battery-electric, and hydrogen. Fortescue’s decision to focus on ammonia positions it uniquely, particularly as it builds out production and export capabilities that will use the same fuel.

This convergence of production and consumption within Fortescue’s ecosystem could offer cost and efficiency synergies, making it a competitive player in the emerging green logistics landscape.