Contractual Confluence Creates Carbon-Cutting Commitment

BHP has signed groundbreaking contracts with COSCO Shipping Bulk Co., Ltd., a subsidiary of COSCO Shipping Group, for the charter of two ammonia dual-fuelled Newcastlemax bulk carriers. These revolutionary vessels represent a paradigm shift in maritime transportation, positioning both companies at the forefront of sustainable shipping innovation. The five-year time charter contracts demonstrate a significant commitment to reducing greenhouse gas emissions in the global shipping industry while maintaining operational efficiency for iron ore transportation.

 Pioneering Propulsion Promises Pollution Reduction

The new vessels to be built under this arrangement will be among only a handful of vessels worldwide capable of using ammonia as a marine fuel. Expected for delivery from 2028, these ships will primarily transport iron ore from Western Australia to Northeast Asia, serving one of the world's most important trade routes. When operated on lower or low to zero greenhouse gas emissions ammonia, these vessels will be capable of reducing greenhouse gas emissions by at least 50% & up to 95% on a per voyage basis compared to conventionally fuelled voyages.

 Environmental Excellence Exemplifies Industry Evolution

This announcement represents an important step toward lowering greenhouse gas emissions in the iron ore seaborne market & moving the maritime sector towards a decarbonised future. The initiative should also strengthen demand for lower or low to zero greenhouse gas emissions marine fuels, which proves crucial in efforts to scale up production of alternative fuels. The contracts will contribute towards reducing the greenhouse gas emissions intensity of BHP chartered shipping, demonstrating tangible progress in sustainable maritime operations.

 Coalition Commitment Catalyzes Corporate Responsibility

These contracts will contribute to BHP's commitment as part of the First Movers Coalition, that by 2030, 10% of BHP's total products shipped to customers using the company's time charter vessels will be shipped using zero greenhouse gas emissions fuels. This ambitious target reflects the company's dedication to environmental stewardship & sustainable business practices. The initiative aligns with global efforts to decarbonize heavy industry & transportation sectors through innovative fuel technologies.

 Strategic Selection Showcases Systematic Scrutiny

BHP selected COSCO Shipping following a rigorous expression of interest process, which evaluated safety, technical & commercial considerations comprehensively. The selection process demonstrates the complexity & importance of choosing the right partner for such pioneering maritime technology. BHP & COSCO Shipping have maintained a longstanding relationship & will work closely together alongside key regulatory bodies to ensure the vessels are delivered & operated safely throughout their operational lifecycle.

 Bunkering Blueprint Builds Operational Foundation

BHP continues to work with the maritime industry to develop an ammonia bunkering plan, the process of fuelling ships with ammonia, for the two vessels when they are delivered from 2028. Sourcing lower & low to zero greenhouse gas emissions ammonia is subject to an ongoing tender process, highlighting the comprehensive approach required for successful implementation. The development of ammonia bunkering infrastructure represents a critical component in the successful deployment of these revolutionary vessels.

 Industry Integration Inspires Innovation Acceleration

Today's announcement forms part of BHP's efforts to establish demand & incentivise the industry to adopt lower & low to zero greenhouse gas emissions fuels, building on the company's current efforts including charter of five dual-fuelled LNG vessels & the operationalisation of biodiesel as a marine fuel in the company's commodity value chains. Emma Roberts, BHP Vice President Maritime & Supply Chain Excellence, emphasized that as one of the world's largest dry bulk charterers, BHP sees this as an opportunity to help establish a pathway for ammonia to become a marine fuel for a globally significant industry where emissions can be difficult to abate.

 Collaborative Vision Validates Sustainable Transformation

Ji Lin, COSCO Shipping Vice President, highlighted that their partnership with BHP has developed over many years, shaped by openness, reliability, & joint pursuit of innovation. The contracts for two 210,000 deadweight ton ammonia dual-fuel bulk carriers represent more than just a project to enable alternative marine fuels, serving as a symbol of how their collaboration evolves with changing times. These vessels will stand at the forefront of technological & environmental advancement, not just for COSCO Shipping & BHP, but for the broader dry bulk sector, representing firm commitment to supporting global climate goals & China's dual-carbon objectives.

Key Takeaways:

• BHP & COSCO Shipping signed contracts for two ammonia dual-fuelled Newcastlemax bulk carriers expected from 2028, capable of reducing greenhouse gas emissions by up to 95% compared to conventional vessels

• The vessels will transport iron ore from Western Australia to Northeast Asia & contribute to BHP's First Movers Coalition commitment of 10% zero emissions fuel usage by 2030

• This partnership represents a significant step toward decarbonizing the maritime sector & establishing ammonia as a viable marine fuel for the global shipping industry