Fortescue wants international maritime organizations to impose $ 100/MT carbon levies on sea energy consumption to make “green ammonia” competitive as sea fuel, executive chairman Andrew Forrest said March 9.
IMO member countries, UN agents assigned to regulate international shipments, will complete new regulations on greenhouse gas emissions from ships this year, which will be implemented in 2027 to accelerate the low carbon transition of the industry.
During an industrial event in London, Forrest suggested a $ 100 MT CO2 levy which is equivalent to maritime emissions can help bridge the price gap between green-ammonia green-ammonia produced from renewable hydrogen and conventional oil-based fuels.
“Everyone wants a flat playing field, wanting a market signal … For the right transition,” Forrest said.
Fortescue, one of the largest Australian miners, has developed hydrogen and renewable ammonia plants while planning to supply ammonia bunkers and use ammonia to resist the shipping fleet.
If IMO includes a levy in future regulations, Fortescue will pay it when mapping the ship to transport its products and will have no difficulty continuing additional costs to its customers, according to the Chairperson.
“We will pay it and collect it in the bill … Our customers will be much happier,” Forrest said, showing trust in the credentials of the customer’s environment.
In addition to levies, IMO must provide a clear and effective financial reward “for hydrogen-based e-Fuel such as green ammonia and” strict global fuel standard “to reduce the intensity of marine energy GHK, added Forrest.
“International maritime organizations must … Fast shipping transition to green fuel,” Forrest said, adding that “there is no time to waste what is called transition fuel” such as LNG and Biofuel.
The most competitive price for green ammonia sent to far East Asia is $ 47.6/gigajoule on average in January, according to the platts (opened in the new tab) the calculator of the global bunker costs. The price of B24 Biobunker fuel is $ 17.67/GJ, LNG is $ 16.96/GJ, and 0.5%-Sulfur fuel oil is $ 14.22/GJ in Singapore.
Ammonia supply
Forrest comments emerged after the Fortescue pilot ship, Green Pioneer, the first in the world was designed to be powered by Ammonia, triggered by one MT Ammonia on Southampton on March 5.
Ammonia is very toxic and corrosive despite the potential decarbonization, and the first ammonia -powered ships in the world in Deepsea’s trade will only hit the waters later this decade. Fortescue developed ships to show off the technical feasibility of Ammonia as a global sea fuel, and green pioneers completed the world’s first ammonia bunkering in Singapore in March 2024 before the first Europe at the British port.
With the Net Scope 3 Emission target in 2040, the company’s executive suggested that Fortescue can get a dried bulk carrier with ammonia capable through retrofit or charter project at the end of this decade as a first step. This has also signed a memorandum of understanding with China Cosco Shipping Corp. to develop these ships.
Last year, the company put aside its target to produce 15 million MT/year green hydrogen in 2030 and 50 million MT/year in 2040 due to high renewable electricity costs – most of the production is expected to produce ammonia. However, the Fortescue executive said the company still plans to make green ammonia commercially available in Australia and Singapore for shipping companies from 2027.
“I whip my team every day … give us a few years,” Forrest said.
Source: Platts
